Microsoft Wins US Patent for Creating Crypto Token Service
Leading American tech corporation Microsoft has been granted a blockchain-related patent to introduce ledger-independent token services. The patent was issued by the United States Patent and Trademark Office (USPTO).
Microsoft Aims To Solve Interoperability Issues
The patent will enable Microsoft to build a system that facilitates the creation and management of tokens across multiple blockchain networks. The system would also provide token templates to depict each type of digital asset while defining its controls and functions.
With this approach, the patent would allow developers to write code for tokens on different platforms all at once.
According to the announcement, Microsoft aims to solve the problems surrounding creating tokens for different distributed ledgers. Currently, it is difficult to do so due to the lack of standardization across different blockchains.
The Ledger-independent token service patent appears to be primarily aimed at developers using enterprise platforms rather than public blockchains. Notable projects in this category like Hyperledger Fabric, Quorum, R3 Corda, and Chain Core were mentioned in the patent.
Beside this project, Microsoft’s interest in interoperability can be seen in its involvement in the Token Taxonomy Initiative. Launched in 2019, this initiative is a token standardization project that enables enterprises to create blockchain-neutral tokens.
The issue of interoperability has become crucial as several crypto projects are actively involved in building solutions. One of such projects is the decentralized oracle network Chainlink, which introduced its Cross-Chain Interoperability Protocol (CCIP) earlier this month.
The new protocol aims to solve the security issues of existing bridges through the proper use of cryptographic primitives. It will also introduce a token bridge that will allow users to move their tokens across any blockchain network in a secure, scalable, and cost-efficient manner.
Despite its recent success, Microsoft awaits the verdict on a crypto mining patent filed last year. According to the application, the tech giant intends to develop a cryptocurrency system that enables individuals to mine cryptocurrency using their body activity data, eliminating the need for specialized mining machines.
Blockchain Patents Gaining Traction
Blockchain-related patent applications have increased in the last few years due to the wide adoption of blockchain technology and cryptocurrencies.
Per the Intellectual Asset Management Magazine report released earlier this year, Alibaba’s Ant group has filed for over 2,000 blockchain patents since 2015. In the United States, one of the largest financial institutions, the Bank of America, announced that it was granted 227 patents this year, 8% of which were blockchain-related patents.
However, IBM remains the highest blockchain patent holder in the US. Earlier this year, IBM partnered with Paris-based company IPwe to introduce the first global patent market to turn patents into non-fungible tokens (NFTs).
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