Cisco’s Bitcoin Mining-Related Patent Good Sign For Cryptocurrencies
On Tuesday 24 April, Cisco, the network tech giant based in California, was awarded a patent by the U.S. Patent and Trademark Office for a crowd-sourced cloud computing application that the company believes could be used in the bitcoin mining process.
Cisco is among the enterprise technology firms that are researching the application of blockchain with a focus on connected devices or the Internet of Things.
Cisco had filed the patent application back in September 2015 for “Crowd-sourced cloud computing” system that would allow its users to share their unused processing power. According to the company, the power could be shared with Internet Service Providers (ISPs), application providers, peers, or even third parties for certain processes such as bitcoin mining process.
Cisco's Cloud Applications
In its filling, Cisco describes how users could partition their resources in order to create a computing power for cloud applications that is dedicated and can be used for various purposes.
Cryptocurrency mining is an expensive process, as it requires electrical power. Cisco claims that through its system, it is able to reduce the charge that is required to mine cryptocurrencies.
The company believes that it would more convenient and efficient for cryptocurrency miners to work together in mining pools using Cisco’s cloud application as cryptocurrency mining requires a lot of computational resources.
The company further explains,
“This model is suitable for, among other things, offering distributed processing and services that can be optimized for speed, volume, scale and resiliency, cost, and regulatory compliance–for example, distributed neighborhood theft protection systems, or cluster, city or municipality county relevant services… One such case involves bitcoin mining, which may be very computational intensive and is typically more convenient for every participant when done in ‘mining pools”
Cisco's Enhanced security
Cisco highlights that the distributed processing is beneficial as the system is easy to scale and is protected from any forms of cyber or physical attacks. Additionally, the company states, “The service provider can use geographic distribution to offload or optimize network loading, as well as to resell large-scale, low-cost computing and storage capacity,”
Cisco has also filled other patents for blockchain-based system with the aim of taking advantage blockchain’s diversity. Among the systems, include the blockchain-based confidential group messaging system, which it had previously been granted a patent. This system would allow tracking of data for group chats in order to make group messaging secure and confidential.
Finally yet importantly, the company had also received a patent for blockchain-based Internet of Things (IoT) equipment. The equipment would allow the identification of different related devices. It would then monitor their activities so that it can know how trustworthy the device is when it connects to a particular network.