As blockchain and cryptocurrency become increasingly popular, so too has the number of patent applications filed in this space. Companies that invest in innovation within the crypto industry are typically keen to secure patent protection as a way of providing credibility and support to their investment. Additionally, given the current patent-eligibility climate with respect to financial-based technology, it can be difficult for blockchain and cryptocurrency-related inventions to pass USPTO review.

Cryptocurrency Technology Patents, effective patent counsel for cryptocurrency-related technology must focus on crafting claims that recite specific technical details that support the claimed solution without invoking abstract ideas or laws of nature (i.e., judicial exceptions). This requires a deep and thorough technical understanding of cryptocurrency and the underlying blockchain technology.

Cryptocurrency Technology Patents: Who’s Leading the Race

For example, a recent patent filed by Square allows brick-and-mortar retailers to accept payments in cryptocurrencies such as bitcoin at the point of sale. The patented technology cooperates with “miners” of cryptocurrency to ensure that digital tokens are properly and securely exchanged between the retailer and customer using blockchain encryption.

Another patented technology allows consumers to verify the authenticity of digital content, such as pictures and video through the use of a hash value stored on each frame. The hash values add up to form a chain of records that can be traced back to the source, which can help identify whether a picture or video is tampered with. The hash values can also be used to protect copyrights.