Monday, May 8, 2017

The Redneck Architecture cannot be patented

Some company is trying to re-patent a database access method for block chain, and couching the language in crypto currency to get past the bonehead patent office.  Database been doing this forever, first party locks the database, then checks if the lock held, and if so writes the data. The patent for two parties to exchange crypto currency has the similar problem, since two parties are exchange digits in serial fashion, not parallel. So the patent, if granted, is still bogus since blockchain is a data base, and databases have an unpatented solution.
After outlining many risk factors, CME asserts that “there is a need in the art for improved systems and methods for clearing derivative contracts based on virtual currencies while minimizing risks to clearing counter-parties.” The patent describes “systems and methods that allow a clearing counter party to confirm that virtual currency has been physically delivered without taking possession of the virtual currency,” the company details.

Here is a related patent from the same group.  Note, they are patenting the public knowledge exposed on this blog for many years:
1. A computer system comprising: a financial computer system that includes: an order book that determines bid and offer prices for financial instruments; a match engine that matches bids and offers for financial instruments; a trade database that stores trade information; a trader computer device connected to the financial computer system and configures to allow a trader to communicate with the financial computer system; a clearinghouse computer connected to the financial computer system and that includes: processor; a computer readable medium containing computer-executable instructions that when executed cause the clearing house processor to perform the steps comprising: (a) receiving a virtual currency mining difficulty factor: (b) receiving a conversion factor; and (c) determining a value of a financial instrument by at least in part multiplying the conversion factor by the virtual currency mining difficulty factor.  

In other words, they want to patent the standard sandbox trading pit, a part of the architecture for at least eight years.  Too late, we are all free to implement any part of the Redneck architecture without fear of government agents.

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