Amazon Looking at Crypto Patents Sparks Interest, but Do We Need Crypto Spending on Amazon?
<>Much like this notion of buying a cup of coffee at Starbucks means mass adoption, the idea of using cryptocurrencies on Amazon is equally desirable. The former has been realised now thanks to a partnership with Gemini, but the latter may soon be coming.
Amazon has been found to have filed for a patent involving cryptographic Proof-of-Work, the system that underpins Bitcoin and most major cryptocurrencies, and while this is a far cry from them accepting Bitcoin on their platform, it is news that has sparked interest.
However, the real question is whether or not there needs to be the option to spend cryptocurrencies on Amazon and if that is the direction that both the company and the digital asset needs to be taking.
Amazons blockchain work
Amazon are not total strangers to blockchain and cryptocurrencies, but have certainly been more interested in the technology to help increase their efficiencies. However, this patent into Proof-of-Work shows that they could be now looking deeper into the tokenized side of the technology.
Computer networks have evolved to provide sophisticated functionality in a large variety of contexts. Providing such functionality, however, often involves complex systems that malicious entities may try to exploit, part of Amazons patent application read.
One such attack involves denial-of-service attacks, which can be disruptive to computer systems on a network. In a distributed denial-of-service attack, for instance, large numbers of requests are sent to a computer system to attempt to overload the computer system.
However, nowhere does the patent mention cryptocurrency. The patent is purely for a Proof-of-Work system, presumably to play a role in Amazons web services division, which is one of its biggest money makers.
No need, yet
There is no real need for Amazon to be looking into the possibility of accepting Bitcoin and other cryptocurrencies as the ecosystem stands as there is no real evidence that the demand is big enough.
Other retailers who do accept Bitcoin, like Overstock, report that less than two percent of their revenue comes in the form of cryptocurrencies. For Amazon to spend huge sums of money setting up this payment gateway would likely be a waste of time and resources – for now that is.
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