Post by: Jamie Redman | Bitcoin.com | News During the first week of December, the second largest bank in the U.S., Bank of America (BOA), was awarded a cryptocurrency exchange patent. The BOA cryptocurrency trading platform’s concept summary outlines three types of accounts where users and businesses can swap digital assets instantly. Bank of America Receives Approval for a Cryptocurrency Exchange Patent On December 5 the U.S. Patent and Trademark Office (USPTO) granted the financial institution Bank of America a patent to build a cryptocurrency exchange. The patent’s summary describes three types of accounts within the platform’s system. The first account is for customers to store their digital funds. The second and third accounts operated by the business are called “float accounts” which allow quick digital asset swaps from behind the scenes similar to a centralized Shapeshift concept. BOA is one of the most active banks filing for blockchain and cryptocurrency-related patents over the past few years. Last summer the firm applied for over twenty patents this past August covering digital asset solutions to public and private blockchain concepts. The digital asset trading platform patent was filed in 2014 during the month of June. The patent called the “cryptocurrency transformation system” is explained quite thoroughly within the summary. “ The system further comprises a processor communicatively coupled to the memory — The processor may receive an electronic request for a currency exchange and determine exchange rates for exchanging a first currency for a second currency,” explains the BOA patent 9836790. “The processor may also determine an optimal exchange rate.” In response to determining the optimal exchange rate, the processor may determine a first amount of the first currency and associate the first amount with the customer account. The processor may also transfer the first amount of the first currency into the first float account and determine a second amount of the second currency. The processor is further able to associate the second amount with the second float account and transfer the second amount of the second currency to the customer. BOA patent 9836790 was invented by Ronca; James G., Castinado; Joseph B., Dolan; Heather, Durbin; Thomas E., Thomas; Richard H. The firm applied for the patent on June 16, 2014. While BOA Captures the Most Cryptocurrency Patents, the Company Also Likes to Close Customer Accounts if They Trade Bitcoin In addition to BOA trying to capture a lot of blockchain and cryptocurrency patents, the company isn’t too friendly towards bitcoin traders. The financial institution has been well-known for closing people’s bank accounts if they trade bitcoin. There are many instances where BOA closed a customer’s account for purchasing cryptocurrencies using applications like Coinbase which deposits money into checking or savings accounts. In fact, this December one customer was sent an 8-page document asking about his cryptocurrency usage and was required to fill out the paperwork before his account service was interrupted. Ironically, the latest patent approval for a BOA controlled cryptocurrency exchange shows the bank favors digital assets, and the institution could very well build the platform in the near future with its awarded patent. What do you think about BOA being granted a patent for a cryptocurrency trading platform? Let us know in the comments below. Images via Pixabay, Bank of America, the USPTO, and Shutterstock.
LINK: Mastercard 2017–2018 U.S. Region Interchange Programs &Rates Preview: LINK: Visa USA Interchange Reimbursement Fees Preview: LINK: Discover Acquirer Interchange and Cash Reimbursement Rates and Fees (U.S. Merchants) The fee information and terms listed in the following chart are confidential information, and except for discussions you may have with your current acquirer, may not be disclosed to any third party, including, any other acquirer, issuer, merchant or merchant processor. Discover DOES NOT disclose the rates openly to public. See preview below:
Things you need to know Important Bitcoin Basics and How It All Works SEE THE ORIGINAL WHITEPAPER HERE: No Central Command Bitcoin isn’t owned by anyone. Think of it like email. Anyone can use it, but there isn’t a single company that is in charge of it. Bitcoin transactions are irreversible. This means that no one, including banks, or governments can block you from sending or receiving bitcoins with anyone else, anywhere in the world. With this freedom comes the great responsibility of not having any central authority to complain to if something goes wrong. Just like physical cash, don’t let strangers hold your bitcoins for you, and don’t send them to untrustworthy people on the internet. Secure Your Wallet There are several different types of Bitcoin wallets, but the most important distinction is in relation to who is in control of the private keys required to spend the bitcoins. Some Bitcoin “wallets” actually act more like banks because they are holding the user’s private keys on behalf. If you choose to use one of these services, be aware that you are completely at their mercy regarding the security of your bitcoins. Most wallets, however, allow the user to be in charge of their own private keys. This means that no one in the entire world can access your account without your permission. It also means that no one can help you if you forget your password or otherwise lose access to your private keys. If you decide you want to own a lot of Bitcoin it would be a good idea to divide them among several different wallets. As they saying goes, don’t put all your eggs in one basket. Bitcoin Price Like everything, Bitcoin’s price is determined by the laws of supply and demand. Because the supply is limited to 21 million bitcoins, as more people use Bitcoin the increased demand, combined with the fixed supply, will force the price to go up. Because the number of people using Bitcoin in the world is still relatively small, the price of Bitcoin in terms of traditional currency can fluctuate significantly on a daily basis, but will continue to increase as more people start to use it. For example, in early 2011 one Bitcoin was worth less than one USD, but in 2015 one Bitcoin is worth hundreds of USD. In the future, if Bitcoin becomes truly popular, each single Bitcoin will have to be worth at least hundreds of thousands of dollars in order to accommodate this additional demand. Bitcoin Exchanges There are several ways to buy Bitcoin, but trusted exchanges are a great way to acquire Bitcoin. Because there are inefficiencies in the traditional banking system, exchanges will sometimes have slightly different prices. If the difference is too great, traders will buy low on one an exchange and sell high on another and close the gap. If an exchange constantly has substantially different prices than others, it is a sign of trouble and that exchange should be avoided. As with everything else, do your research and find an exchange you can trust. It’s also a good idea not to use an exchange as a wallet. Move your Bitcoin to your personal wallet so that you have control over your funds at all times. You can view our list of Bitcoin exchanges here . Bitcoin Isn't Completely Anonymous Because all Bitcoin transactions are stored on a public ledger known as the blockchain, people might be able to link your identity to a transaction over time. Some companies offer various tools such as Bitcoin mixers to help achieve greater privacy, but it takes a huge amount of effort to use Bitcoin anonymously. You may want to follow your country’s tax regulations regarding Bitcoin in order to avoid trouble with the law, but you have the power not to should you choose to take that risk. To improve privacy, most newer Bitcoin wallets will use a new Bitcoin address each time someone sends bitcoins to you. Unconfirmed Transactions Bitcoin transactions are seen by the entire network within a few seconds and are usually recorded into Bitcoin's world wide ledger called the blockchain, in the next block. While it’s possible that a transaction won’t be confirmed in the next block, in the vast majority of circumstances it is fine to accept a transaction as soon as it has been seen by the network. Unlike traditional payment systems, Bitcoin transactions are lightning fast and can be sent globally. Bitcoin is still relatively new, but with each passing day the technology becomes more reliable. It is more and more unlikely that a major bug will emerge in the system as time goes by, and people can trust the technology more with the passing of time. Each month people transact hundreds of millions of dollars worth of Bitcoin. Bitcoin Wallet Download the Bitcoin.com Wallet right to your device for easy and secure access to your bitcoins. Perfect for beginners, the Bitcoin.com Wallet makes using and holding bitcoins easy. No logins are required. https://www.bitcoin.com/choose-your-wallet/bitcoin-com-wallet Bitcoin Mining What is Bitcoin Mining? Bitcoin Mining is a peer-to-peer computer process used to secure and verify bitcoin transactions—payments from one user to another on a decentralized network. Mining involves adding bitcoin transaction data to Bitcoin's global public ledger of past transactions. Each group of transactions is called a block. Blocks are secured by Bitcoin miners and build on top of each other forming a chain. This ledger of past transactions is called the blockchain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. What is Proof-of-Work? Bitcoin Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply. Individual blocks must contain a proof-of-work to be considered valid. This proof-of-work (PoW) is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses a PoW function to protect against double-spending, which also makes Bitcoin's ledger immutable. How Does Mining Create New Bitcoins? The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce bitcoins into the system. Miners are paid transaction fees as well as a subsidy of newly created coins, called block rewards. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining. What Are Bitcoin Mining Pools? During the last several years an incredible amount of Bitcoin mining power (hashrate) has come online making it harder for individuals to have enough hashrate to single-handedly solve a block and earn the payout reward. To compensate for this pool mining was introduced. Pooled mining is a mining approach where groups of individual miners contribute to the generation of a block, and then split the block reward according the contributed processing power. Introducing the Bitcoin.com Mining Pool Bitcoin.com has developed its own modern Bitcoin mining pool which offers two different payout methods, Pay Per Share (PPS) and Pay Per Last N Shares (PPLNS). Start mining on pool.bitcoin.com today to take advantage of our competitive cloud mining contracts . https://www.bitcoin.com/bitcoin-mining Start Accepting Bitcoin! Bitcoin is a faster and cheaper monetary exchange for merchants providing any service or goods. Whether online, or in a physical location using Bitcoin has significant benefits compared to credit card services and other methods of payment. The plus side to using Bitcoin is that the fees are extremely lower than traditional payment mechanisms, and payments settle instantly. There is no possibility of charge back as Bitcoin transactions are final and confirmed on the blockchain which gives merchants the final say on returns and fraudulent activity. Some Bitcoin merchant solutions also provide invoices and easy to use Point-Of-Sale (POS) applications that run on a smart phone or tablet. Many merchant processors instantly convert the Bitcoin payment to your local currency at the current exchange rate. There are also a number of stand-alone tools available online for merchants to identify the current conversion rate quickly if needed. A Few Services That Offer Merchant Solutions BitPay Atlanta GA , payment processor and merchant service API
Blockchain , a very simple, bitcoin only, merchant app that gets you started in a few seconds.
Coinbase San Francisco CA , wallet, cryptocurrency payment processor and API
Blockonomics , enables Bitcoin acceptance without an account. Permissionless invoicing and API with immediate, guided setup.
CoinGate , Vilnius, Lithuania , Accept Bitcoin payments and receive payouts in Euros, U.S. Dollars or bitcoins. E-commerce plugins, API, Point of Sale app for Android / iOS / web, payment buttons.
BitcoinPay London , payment gateway operating with PLN, EUR, CZK, and USD
Paxful Wilmington DE , Point of Sale, peer to peer market
Spectrocoin London , all-in-one merchant services solution that processes in Europe.
CoinPip Singapore , CoinPip enables businesses to send and receive digital payments
BitPagos Wilmington DE , cryptocurrency payment gateway credit card solutions.
CoinsBank United Kingdom , payment processor, exchange and card issuer.
Bitaps Russia , payment processor.
GoUrl Dominica , Official Bitcoin/Altcoin Payment Gateway for WordPress. Bitcoin Terminals, POS Solutions And Brick-and-Mortar Apps XBTerminal London , Bitcoin Point-of-Sale mobile application for Android and iOS.
Coinify Denmark , Point-of-Sale application for Android and IOS.
CoinGate , Vilnius, Lithuania , Bitcoin Point of Sale apps for Android, iOS and Bitcoin Point of Sale web app which can be accessed from any internet enabled device directly in a web browser. Want to learn more about Bitcoin? Bitcoin.com is the place for people who want to research this new and exciting technology. You can also conveniently find where to purchase Bitcoin at our buy Bitcoin page. We also offer a directory of wallet service solutions and Bitcoin debit/credit cards . Our news section has up to date headlines about cryptocurrency. Our wiki has a vast collection of information for all things Bitcoin. If you're looking to connect with the Bitcoin community the Bitcoin.com Forum is an active and friendly place to communicate and learn. Bitcoin.com is the premiere portal for the most important invention since the Internet. Accepting Bitcoin today will make your business ready for tomorrow.