E-commerce giant Amazon has won a new patent related to the proof-of-work (PoW) algorithm, the system that underpins most major cryptocurrencies, including Bitcoin and Litecoin.
The patent document, which was initially filed in December 2016, describes a system that uses a PoW cryptographic concept to prevent distributed denial-of-service (DDoS) attacks.
In this sense, the authors of the document propose to use Merkle Trees, which allows computers on the network to verify individual records without having to review and compare versions of the entire database.
Liquidity Constraints in 2021 – What is the Best Path Forward?Go to article >>
This, according to the patent, makes building the Merkle tree is the required proof-of-work within the network while also guaranteeing that all the other records in the database haven’t been changed.
The patent published by the U.S. Patent and Trademark Office (USPTO) further explains: “A proof-of-work system where a first party (e.g., a client computer system) may request access to a computing resource. A second party (e.g., a service provider) may determine a challenge that may be provided to the first party. A valid solution to the challenge may be generated and provided for the request to be fulfilled.”
Abundance of big companies filing patent applications
Last year alone, several major companies applied for Blockchain-related patents. In turn, it’s been obvious that E-commerce giant was going to dip their toes into blockchain territory for months now. Earlier in November, Amazon filed a cloud computing patent, which describes how to use cryptocurrencies as a payment method for cloud computing services on Amazon Web Services (AWS).
However, and despite public interest and competitors’ experience, Amazon has never accepted cryptocurrencies as a payment option for its products. The company hasn’t changed its attitude even after one of its major rivals, Overstock, delved further into the crypto space with various ventures and many expected Amazon would have to follow suit.