Amazon Secures Patent Involving Cryptographic Proof-of-Work

E-commerce giant Amazon has won a new patent related to the proof-of-work (PoW) algorithm, the system that underpins most major Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, 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.

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 Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term 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.