Electronics Giant Bosch Files Patent for a Digital Payment System Based on IOTA
- Bosch digital payment system to use the core of IOTA, the distributed database “Tangle”
- This solution the company says means “the creation of a single cryptocurrency system that offers a wide range of functional features”
- This cryptocurrency system would also mean reasonable transfer costs and no interruption in global payments
IOTA partner Bosch has filed a patent regarding, “Method and device for operating a digital payment system,” which also includes a device, a computer program, and a storage medium.
The application relates to an electronic method for cryptographically secure transfers of cryptocurrency. It also includes a wallet program for implementing a client node of the cryptocurrency and a central root certification authority to serve as evidence for the authority of the public server key and the authorization of the transaction server.
Leveraging IOTA’s Tangle
The German multinational engineering and technology company further mentions in its application that this invention will be based on the distributed database “Tangle,” which forms the core of the cryptocurrency IOTA.
IOTA’s protocol Tangle is different from blockchain in the way that it does not use “blocks” and is built upon a directed acyclic graph (DAG). In DAG, different types of transactions run on different chains in the network at the same time.
IOTA is the 22nd largest cryptocurrency which is up over 50% to date in 2020 and currently trades at $0.245.
Back in 2018, IOTA partnered with the electronics giant to launch the new device for IoT data collection.
This crypto system means reasonable transfer costs
Similar to the blockchain, none of the IOTA tokens will be issued twice and account balances can’t be manipulated by a possible attacker, assumes the application about the IOTA cryptocurrency.
The advantage of this solution Bosch mentions is “the creation of a single cryptocurrency system that offers a wide range of functional features,” and a single software error or attack cannot endanger the entire system meaning no interruption in global payments.
If any double-spending or “fake coins” were to circulate as a result of an error or attack on the tangle, the memories of the other Tangles will no longer accept transfers from the tangle in question as soon as they recognize the double-spending.
“With this cryptocurrency system, worldwide payment transactions could be processed at reasonable transfer costs,” reads the application.
The company explains that for a single currency system, they can use different and interdependent tangles parallelly. The dependency between the tangles then keeps the value of the coins stable. Parallel angles also mean it would be easier to introduce new technologies without the participation of all users if individuals did not see any advantages in the technology in question.
Additionally, the coins can be “conveniently transferred from one Tangle to another and have the same stable value in each Tangle.”