Technology

Bitcoin ‘Creator’ Races to Patent Technology

Published

8 years ago

March 3, 2017

Bitcoin ‘Creator’ Races to Patent Technology

The man who last year made global headlines by claiming to be Satoshi Nakamoto, the creator of bitcoin, is working with a fugitive online gambling entrepreneur to file scores of patents relating to the digital currency and its underlying technology, blockchain.

Craig Wright, the Australian computer scientist who made the Satoshi claim, has the backing of Calvin Ayre, a wealthy Canadian entrepreneur, according to people close to Wright and documents reviewed by Reuters.

Ayre has been indicted in the United States on charges of running online gambling operations that are illegal in many U.S. states — an accusation he rejects.

Wright’s expertise combined with Ayre’s support make a potentially formidable force in shaping the future of bitcoin and blockchain, the ledger technology that underlies digital currencies.

Wright and his associates have lodged more than 70 patent applications in Britain and have plans to file many more, according to documents and emails, and sources with knowledge of Wright’s business.

The patents range from the storage of medical documents to Wi-Fi security, and reflect Wright’s deep knowledge of how bitcoin and blockchain work.

Their total compares with 63 blockchain-related patents filed globally last year and 27 so far this year by multinationals from credit card companies to chipmakers, according to Thomson Innovation.

Neither Wright nor Ayre would comment for this story on their business relationship, details of which are revealed here for the first time, or their goals. But their interest in bitcoin and blockchain highlights two key trends.

First, an increasing number of entrepreneurs believe blockchain, which can circumvent the need for big financial intermediaries, will challenge traditional payment systems.

Various banks are investing large sums to explore how blockchain could revolutionize payment systems and cut costs.

Bitcoin involves sending payments directly, securely and potentially anonymously between two people’s digital wallets, whereas all mainstream transactions, including those using intermediaries like PayPal and credit card lenders, run through banks and usually require named accounts and verification.

Second, blockchain has the potential to defy authorities trying to enforce borders and national regulations — and it already does so in areas such as online gambling. In internet chat rooms some online gamblers say that using bitcoin enables them to disguise their identity and transactions.

The confidentiality conveyed by the currency is one source of its popularity. Bitcoin hit a record high this week, partly because of speculation that the first bitcoin exchange-traded fund is set to receive U.S. regulatory approval.

After a sharp rise this year, the cryptocurrency reached more than $1,200 per bitcoin.

Ayre said last year that he saw a “growing convergence” of bitcoin and online gambling, according to the website CalvinAyre.com.

Documents show Wright’s links to online gambling go back decades and that bitcoin grew out of code originally developed with gambling in mind.

Early bitcoin code, seen by Reuters and analyzed by a computer coding consultant with no ties to Wright or any blockchain-related project, contains unimplemented functions related to poker.

Wright’s vision for bitcoin, though, goes much further than gambling, according to his research papers and interview transcripts.

It remains unclear whether he is Satoshi Nakamoto or not, and even whether Satoshi is one person or a group of people.

But some of the documents, including two folders of computer code for early versions of bitcoin, support Wright’s claims that he was closely involved in the development of the cryptocurrency before it became public in 2009.

Whatever Wright’s original role, he has suggested bitcoin could have widespread applications. In a paper from November 2015, he wrote, “The bitcoin blockchain can be scaled up to replace all existing payment system networks to become the world’s single global economic infrastructure.”

The paper is unpublished, but it gives an insight into the global scope of his plans for the technology.

While it is far from clear the two will be successful in their patent applications, bitcoin and patent experts say Wright’s project represents the single largest filing of bitcoin-related intellectual property they have seen.

“It’s certainly bullish,” said Justin Hill, a patents expert with law firm Olswang. “With the ambition comes the risk.”

Up Next

Peugeot Manufacturer Buys Opel $2.3bn

Don't Miss

Technology Alone Can’t Solve Business Problems

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments

Technology

EU Raises Tariff on Chinese Electric Vehicles by 35%

Published

1 week ago

October 4, 2024

Samed Olukoya

In an effort to slow down Chinese infiltration of the European market with more affordable options, the European Union has hiked tariffs on electric vehicles from China by 35% to 45% from the usual 10%.

According to people familiar with the situation, ten member states voted in support of the new tariff while Germany and four others voted against it. The remaining 12 states reportedly abstained.

Last month, the former European Central Bank President Mario Draghi warned that Chinese state-sponsored competition was a threat to the European Union and could leave the region vulnerable to coercion.

The bloc had claimed that China unfairly subsidized its industry to have an edge over EU businesses, a claim Beijing denies and has threatened retaliatory action on European dairy, brandy, pork and automobile sectors.

However, given the size of trade between the bloc and China, €739 billion or $815 billion in last year, it’s believed the two parties will continue negotiations to find an alternative to the tariffs.

Technology

OpenAI’s Valuation Soars to $157 Billion After $6.6 Billion Funding Round

Published

1 week ago

October 3, 2024

Samed Olukoya

OpenAI, the company that owns Chatgpt, has raised $6.6 billion in a new funding round to boost the company’s valuation to $157 billion as it looks to strengthen its lead in generative AI technology.

Thrive Capital led the funding round with $1.3 billion, while Microsoft invested an additional $750 million, bringing its total investment in OpenAI to $13.75 billion.

According to a source familiar with the matter, Khosla Ventures, Fidelity Management & Research Co., and Nvidia Corp., the chipmaker whose powerful processors are driving the AI boom—were also among the investors.

Apart from Elon Musk’s SpaceX and TikTok owner ByteDance Ltd, this deal ranks as one of the largest-ever private investments.

The ability of OpenAI to raise such a substantial amount despite heightened global risks demonstrates the industry’s confidence in the power of AI.

Other investors included Tiger Global Management, which contributed $350 million, and Altimeter Capital, which invested at least $250 million.

SoftBank Group Corp. and the new Abu Dhabi-based tech investment firm MGX also participated, with SoftBank’s investment totaling $500 million, according to one source who requested anonymity. Venture firm Coatue was another participant.

In a statement, the company said it plans to use the funds to advance AI research and expand its computing capacity. “AI is already personalizing learning, accelerating healthcare breakthroughs, and driving productivity,” said OpenAI Chief Financial Officer Sarah Friar. “And this is just the start.”

Fintech

Kazang Pay Launches Card Acquiring Service in Zambia

Published

2 weeks ago

October 2, 2024

Samed Olukoya

Kazang, the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”