"Bitcoin’s 'creator' races to patent technology with gambling tycoon"
From Reuters:
A computer scientist and an online gambling fugitive have joined forces
in a land grab for intellectual property related to bitcoin and
blockchain.
SYDNEY/SINGAPORE - The man who last year made global headlines by
claiming to be Satoshi Nakamoto, the creator of bitcoin, is working with
a fugitive online gambling entrepreneur to file scores of patents
relating to the digital currency and its underlying technology,
blockchain.
Craig Wright, the Australian computer scientist who
made the Satoshi claim, has the backing of Calvin Ayre, a wealthy
Canadian entrepreneur, according to people close to Wright and documents
reviewed by Reuters. Ayre has been indicted in the United States on
charges of running online gambling operations that are illegal in many
U.S. states – an accusation he rejects.
Wright’s expertise
combined with Ayre’s support make a potentially formidable force in
shaping the future of bitcoin and blockchain, the ledger technology that
underlies digital currencies. Wright and his associates have lodged
more than 70 patent applications in Britain and have plans to file many
more, according to documents and emails reviewed by Reuters and sources
with knowledge of Wright’s business. The patents range from the storage
of medical documents to WiFi security, and reflect Wright's deep
knowledge of how bitcoin and blockchain work.
Their total compares with 63 blockchain-related patents filed
globally last year and 27 so far this year by multinationals from credit
card companies to chipmakers, according to Thomson Innovation.
Neither
Wright nor Ayre would comment for this story on their business
relationship, details of which are revealed here for the first time, or
their goals. But their interest in bitcoin and blockchain highlights two
key trends.
First, an increasing number of entrepreneurs believe
blockchain, which can circumvent the need for big financial
intermediaries, will challenge traditional payment systems. Various
banks are investing large sums to explore how blockchain could
revolutionise payment systems and cut costs. Bitcoin involves sending
payments directly, securely and potentially anonymously between two
people's digital wallets, whereas all mainstream transactions, including
those using intermediaries like Paypal and credit card lenders, run
through banks and usually require named accounts and verification.
Second,
blockchain has the potential to defy authorities trying to enforce
borders and national regulations – and it already does so in areas such
as online gambling. In internet chatrooms some online gamblers say that
using bitcoin enables them to disguise their identity and transactions.
The
confidentiality conveyed by the currency is one source of its
popularity. Bitcoin hit a record high this week, partly because of
speculation that the first bitcoin exchange-traded fund is set to
receive U.S. regulatory approval. After a sharp rise this year, the
cryptocurrency reached more than $1,200 per bitcoin.
Ayre said last year that he saw a “growing convergence” of bitcoin and online gambling, according to the website CalvinAyre.com.
Documents reviewed by Reuters show Wright’s links to online gambling go
back decades and that bitcoin grew out of code originally developed
with gambling in mind. Early bitcoin code, seen by Reuters and analysed
by a computer coding consultant with no ties to Wright or any
blockchain-related project, contains unimplemented functions related to
poker....MUCH MORE
