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Cryptocurrencies
The immutable nature of the data stored in a DLT leads to a host
of applications across different sectors. The best known
application is that of cryptocurrencies, such as Bitcoin. Indeed,
it was in Satoshi Nakamoto’s 2008 white paper “Bitcoin:
A Peer-to-Peer Electronic Cash System” that the author first
set out the technical basis for today’s blockchain network.
The blockchain infrastructure removes one of the core obstacles to
a decentralised payment system, namely that of the “double
spend problem” in which a user may spend the same digital
coin or token multiple times in payments to different parties. In
the case of a blockchain network, each individual will have a
digital wallet in which their (digital) coins are stored, with
payments being transferred from one individual’s wallet to
another. Importantly, each individual payment will only be added to
the ledger once it has been validated by the other nodes in the
network, at which point the coin(s) will be recorded as having been
transferred from the sender to the recipient. Any attempt to spend
the same digital coin in a further, separate transaction would then
fail to be validated by the network.
Since Bitcoin was first introduced, numerous other
cryptocurrencies have been created, each of which allows for the
peer-to-peer transfer of currency without the need for a
centralised authority such as a clearing bank. As with Bitcoin,
these cryptocurrencies are built on a network of nodes employing a
distributed ledger for recordal of transactions. Differences may
arise in terms of the size of the underlying networks, as well as
the cryptographic algorithms used to secure transactions on the
network and the precise consensus mechanisms used for validating
those transactions.
Beyond cryptocurrencies
Whilst most commonly associated with cryptocurrencies, the list
of areas in which distributed ledger technology is finding new
applications continues to grow. Indeed, distributed ledger
technology has potential applications in any area in which it is
desirable to maintain a robust and tamper-proof record of
transactions. Some examples include the following:
Property and land registration
Distributed ledger technology has the potential to replace
conventional property and land registers, as well as the patent and
trademark registers that record ownership of intellectual property
rights. Smart contracts might be used to record the transfer of
such assets between different parties in a highly efficient
matter.
Energy
Distributed ledger technology offers the possibility to record
energy supply transactions, including metering of people’s
energy usage in their homes and monitoring demand on the energy
grid, with users and businesses buying and selling electricity
through the use of smart contracts.
Supply chain monitoring
The passage of a specific goods item from its source of origin,
through a distribution network and to the final end user, can be
logged on the blockchain, allowing that user to confirm the
provenance of that particular goods item. Users can use the
blockchain record to confirm not only the source of origin, but
also that goods have been handled throughout their journey in
accordance with necessary regulations, and that any storage and
transport requirements have been properly met.
Voting
The transactions logged in the distributed ledger need not only
reference the exchange of currency or assets between parties, but
could also be used to record decisions made by a particular
individual. Such decisions could include a user’s choice of
candidate to vote for in an election. Proponents of using
distributed ledger technology for voting argue that the secure
nature of the distributed ledger will help to reduce the risk of
voter fraud. In addition, since the record of transactions is
available to all nodes in the network, each party could easily
verify the result of the election. The use of distributed ledger
technology for voting is by no means just an abstract idea, having
already been piloted in Utah during the US 2020 Presidential
Election. Whilst the largescale adoption of the technology for
voting will no doubt require additional supporting measures be put
in place, the particular advantages offered by distributed ledger
technology mean it is likely that interest in this field will
continue to grow.
Healthcare and personal records management
Distributed ledger technology has been proposed as an efficient
means for storing and sharing of patients’ medical data with
approved parties. A patient may, for example, use the ledger to
store their data in a secure manner. Medical professionals could
then view the patient’s data by referring to the ledger, with
the patient’s consent to view the data being managed via
transactions on the ledger.
NFTs
One particular application of distributed ledger technology that
continues to capture people’s attention is NFTs (Non-Fungible
Tokens). An NFT can be understood to be a digital token or asset
that is recorded in the distributed ledger and which can provide
proof of ownership of an associated asset. The associated asset may
itself be a digital asset such as computer-generated piece of art,
or any kind of tangible asset present outside of the computer, such
as a sculpture or piece of real estate. Whilst identical copies of
the asset (both legitimate and counterfeit) may be made and
distributed to multiple parties, the immutable nature of the
distributed ledger means that precisely who has ownership of the
one true “original” asset will be the party recorded as
holding the NFT in the distributed ledger.
Web 3.0
More generally, distributed ledger technology has been envisaged
as providing the basis for a new, fully decentralised internet, or
“Web 3.0” that would remove the need for centralised
data repositories and restore control of users’ personal data
to those users themselves. Combined with other advances in
Artificial Intelligence (AI) and machine learning, proponents
believe that such a configuration may signal a new age of the
internet in which users have both greater connectivity and autonomy
over their data.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Maucher Jenkins
The EPO Guidelines are the main resource used by EPO examiners for guidance in the examination process. Section F-IV, 3.9 of the guidelines sets out examples of acceptable kinds of claims directed to computer-implemented inventions.
