How to Patent AI Innovations for Niche Product Success
April 23, 2024
Traders and crypto holders can receive liquid funds as loans without selling their cryptocurrency assets. These are known as crypto loans without collateral that are provided by various innovative financial services platforms. These days, multiple new services are getting launched in the market that has resulted in growth of crypto lending sector. Essentially, crypto traders and cryptocurrency holders use their cryptocurrency assets as collateral to obtain unsecured liquid funds as loan from such service providers. Once the loan is paid back with interest, the crypto assets that are held as collateral are returned. Accordingly, it becomes important to consider the associated legal issues while attaching collateral to a cryptocurrency or while backing a cryptocurrency by the shares of incorporation. During such cryptocurrency transactions, appropriate legal documents, blockchain agreements, cryptocurrency contracts and appropriate legal due diligence may be needed for focusing on pros and cons of launching such crypto currency from various jurisdictions that promote such currencies, incorporation of companies in such jurisdictions, requirements to do business in these jurisdictions, compliances required, applicable regulations, and the like.
A cryptocurrency is a computerized or virtual money that is secured by cryptography, which makes it almost difficult to forge or spend it more than once. Numerous digital currencies are decentralized networks dependent on blockchain innovation, which is a distributed ledger upheld by a dissimilar network of computers. A characterizing highlight of digital currencies or cryptocurrencies is that they are usually not issued by any central authority, delivering them supposedly protected to government interference or management.
Cryptocurrencies hold the guarantee of making it simpler to transfer funds directly between two parties, without the requirement for a trusted third party like a bank. These exchanges are rather issued by the utilization of public keys and private keys and various types of incentive systems, similar to Proof of Work or Proof of Stake. In present-day cryptocurrency frameworks, a client’s “wallet,” or account address, has a public key, while the private key is known distinctly to the proprietor and is utilized to sign transactions. Asset or fund transfers are completed with nominal handling expenses through cryptocurrency exchanges, permitting clients to stay away from the lofty charges charged by banks and monetary organizations for wire transfers.
The semi-unknown nature of cryptocurrency exchanges makes them appropriate for a large group of criminal operations, for example, illegal tax avoidance and tax evasion. Notwithstanding, digital money advocates regularly profoundly esteem their obscurity, referring to advantages of security like an assurance for informants or activists living under severe governments. A handful of digital currencies are more confidential than others.
Bitcoin is just one sort of virtual currency, as there are a few virtual monetary forms available, a large number of which are utilized, held, transferred, and made in a different way than Bitcoin. Bitcoin is likewise a framework organization. When alluding to the actual framework, the term Bitcoin with capitalization is utilized. The term bitcoin without capitalization is utilized to portray bitcoins as units of account. The revolution of cryptographic money like bitcoin, and blockchain innovation, is that it gives a splendid solution for what is ordinarily known as the ”twofold spending issue” that accompanies digital assets.
In use, physical money must be spent once, as when it is handed over in an exchange, you presently don’t have it; unexpectedly, digital files can be copied and falsified. Until the apparition of bitcoin, focal trusted third parties like banks would confirm whether the digital cash, which comprises a large portion of the cash flowing in the economy, has been spent twice. At its simplest expression, bitcoin is digital money or virtual money, likewise called digital currency or cryptocurrency. It works in a shared installment network through open-source programming, free of any focal power, banking delegate, or government.
Cryptography guarantees that only the proprietor of the bitcoin has the power to spend them. The framework is issued using the blockchain. A blockchain is a decentralized shared organization of computers, where every computer is known as a node, which on the whole interaction, keep up with and disperse a solitary legitimate record of affirmed transactions. The blockchain makes a single master registry of the already cryptological secured bitcoin transactions, checking them and securing them down a profoundly cutthroat market called mining.
Blockchain innovation, and particularly cryptocurrency, gives numerous benefits that make it significant. In addition to other things, it is secure. The blockchain is certifiably not a customary computer network where every one of the nodes establishing the organization interface with a solitary and focal data set. Rather, it is decentralized and disseminated on every node of the organization, with the goal that the nodes each host their duplicate of the master record, of all transactions. This way, the intrinsic dangers of a single mark of failures and data breaches are wiped out, which are growing worries for monetary establishments and enormous enterprises, in this manner making esteem by improving security.
Likewise, it is decentralized and disintermediated as in it removes the mediator, also called the middleman, since the blockchain supposedly permits clients to execute among themselves on a shared premise, without the requirement for intermediaries. This innovation might prompt monstrous investment funds on costs from escrow specialists and other monetary intermediaries that verifiably were expected to build up trust between the parties.
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Advocate Rahul Dev is a Patent Attorney & International Business Lawyer practicing Technology, Intellectual Property & Corporate Laws. He is reachable at rd (at) patentbusinesslawyer (dot) com & @rdpatentlawyer on Twitter.
Quoted in and contributed to 50+ national & international publications (Bloomberg, FirstPost, SwissInfo, Outlook Money, Yahoo News, Times of India, Economic Times, Business Standard, Quartz, Global Legal Post, International Bar Association, LawAsia, BioSpectrum Asia, Digital News Asia, e27, Leaders Speak, Entrepreneur India, VCCircle, AutoTech).
Regularly invited to speak at international & national platforms (conferences, TV channels, seminars, corporate trainings, government workshops) on technology, patents, business strategy, legal developments, leadership & management.
Working closely with patent attorneys along with international law firms with significant experience with lawyers in Asia Pacific providing services to clients in US and Europe. Flagship services include international patent and trademark filings, patent services in India and global patent consulting services.
Global Blockchain Lawyers (www.GlobalBlockchainLawyers.com) is a digital platform to discuss legal issues, latest technology and legal developments, and applicable laws in the dynamic field of Digital Currency, Blockchain, Bitcoin, Cryptocurrency and raising capital through the sale of tokens or coins (ICO or Initial Coin Offerings).
Blockchain ecosystem in India is evolving at a rapid pace and a proactive legal approach is required by blockchain lawyers in India to understand the complex nature of applicable laws and regulations.
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