IBM received a US patent for the “self-aware token” type. The patent was granted by the US Patent Office on 7 January. It describes an accounting-based payment system that can make it easier for individual users, companies and governments to track transactions made using cryptocurrencies.

IBM and the self-aware token

The “Self-aware token” is used to record all transactions when they are not used on a payment platform patented by IBM in 2012. When a token “joins” the platform ecosystem again at a later stage, it automatically transfers data for any “offline transaction”.

Under the patent, the concept allows for the creation of a “full life cycle” of tokens, which may include payment location and transaction amount data and any information about previous token holders. A token cannot store transaction data itself, but would store it on a separate device, such as a phone or laptop, or alternatively a database specifically designed for that purpose.

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In the case of IBM, the ability to determine the origin of a token can help ‘strengthen trust and profitability’ in a new token-based economy. Companies can confirm that tokens have not been used for any criminal activities; users can make sure that they have not been deceived in any way; administrators or regulators can create profiles on the sites to enforce relevant laws and regulations.

Facilitate exchange

IBM believes that a token can facilitate exchanges between different asset classes. As the market develops and as more and more people crypt the question of how to enable payments between the different asset classes becomes more and more relevant, as stated in the patent. By recording transaction data, ‘e-currencies [could] operate in different economic systems, facilitating participation alongside state and other non-standard currencies’.

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Last August, IBM also acquired a patent for a blockchain-based web browser that could protect users’ privacy. The company also launched the IBM Blockchain platform in 2017 and is a co-founder of the Hyperledger project.

Other companies also patent their cryptocurrencies ideas. Last week Square received a patent for a new payment system, which automatically exchanges cryptocurrency into fiduciary currencies.

Travon Temple
Witold Adruszczak CEO of the Bitcoin-Squad.com project for 3 years associated with the crypto industry. This year we have decided on an international project. Our goal is to build Bitcoin awareness in the world. Education and support for people with no experience in the new industry which are cryptocurrencies. If you need more support please write in the comment. For all I always try to answer questions under the articles.