DragonChain is Granted Patent on InterChain; DRGN Token Surges
The big news in the blockchain world today was that DragonChain had been granted a U.S. patent on their InterChain technology. The company was started by Disney in 2016 as an open-source software company, and is expected to fully morph into a for-profit company at some point down the line. It is not necessarily notable what they got their patent on, but more an issue of how patents will function in the blockchain community.
What is DragonChain
As a company, DragonChain’s core mission is to help companies easily incorporate blockchain into their business applications. Just as blockchain technology and cryptocurrencies have become a buzzword in most investing circles, they have also become a hot topic in any corporation looking for greater efficiency.
Many companies are interested in the type of work DragonChain is doing because of the increased efficiency offered by a reduction of costs from eliminating potential fraud. Additionally, they provide a serverless ecosystem for allowing companies to start using blockchain applications in a private and secure manner. At its core, DragonChain is about helping businesses build their own smart contracts, which is essentially a mass market application of artificial intelligence.
DragonChain’s token, DRGN, was surging through the early hours of Thursday’s session, rising nearly 16% to $0.12755.
InterChain, as the name would suggest, is a way to connect public and private blockchains in a secure manner. The CEO of DragonChain, Joe Roots, says to view it as being able to combine the best characteristics of each blockchain.
InterChain is strong on the flexibility, utility, and security front. The flexibility of using multiple public blockchains broadens the number of tools available to developers, improves transactions speeds, and lowers operational costs. Additionally, when a chain has a limited set of capabilities devoted to a certain use, it might normally be ignored. But now those limited uses can be combined with the all-purpose capabilities of public blockchains.
Security has come to the forefront of the conversation repeatedly in recent time. With InterChain, companies will have the chance to retain full control of their data and keep business logic and smart contracts in-house. There is huge value in being able to choose what goes on private network and what goes on public blockchain.
The Importance of Patents
Receiving this patent can be perceived as achieving leadership in the space. It is unclear what this will mean for other companies that are creating platforms with similar functions, but it is definitely a strong first step.
Reddit users have joked about whether this is a patent on all cross-chain solutions, and that brings up a bigger question about what is actually patentable in this industry. Enforcing patents when many of the original innovations were never patented could just be a recipe for patent trolls, and also seems like it would be nightmarish to enforce.
One thing is clear, the ability to simplify business processes with added security and utility is something that will have increasing demand. As an enterprise-grade blockchain solution that is envisioned to become a multi-chain, multi-network, and multi-token platform for blockchain-based computing, DragonChain has positioned itself well with InterChain. But what will competitive forces do as a result of their receiving this patent?
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