Hi it’s Keir Finlow-Bates here, and today I
want to talk about probably the biggest collection of intellectual property and
inventions that I have in my patent portfolio of blockchain inventions, and
it is to do with quite a low-level fundamental thing in the blockchain
world. And the problem that this collection of inventions is looking to
solve is one that we do not have in the traditional banking sector – so when it
comes to ordinary everyday banks, you open a bank account and that bank
account number then becomes valid, and you can start receiving transfers or you
can start making payments, and then eventually you may decide to close the
bank account and now the bank account number is no longer valid, and the same
happens in credit cards – they are issued, and the credit card number is not valid
before it’s issued, and they can be cancelled – for example if they’re stolen.
And then transactions from the stolen credit card are no longer valid or
honored. Now in the blockchain cryptocurrency world we don’t see that
kind of thing. When, for example, Bitcoin was first created all possible 2^98 or
however many number of Bitcoin addresses that there can be
(I was way off – it’s 2^160. Momentary brain malfunction) are all valid from
block 1 and will be as long as the Bitcoin blockchain continues to be
extended, so that means two things: one is if you accidentally miss type the
Bitcoin address that you want to send your coins to then: chances are they’re
lost forever. That transaction is perfectly valid but if you pick a
Bitcoin address at random, nobody has the private key to it and therefore nobody
can spend those coins ever again. And the second problem is that Bitcoin
wallets and generate address after address after address, and there is a
good reason for that – it’s for security purposes, but if you happen to lose the
keys to one or more of those addresses then those addresses become invalid, and
yet other people may have them in their address books and may continue to
send you funds. So you can’t cancel a Bitcoin address. So the inventions that I
was talking about at the beginning of this video are all about that: they are
about effectively issuing addresses on a blockchain, so that only issued addresses
are valuable, or useable rather, and about revoking addresses so that, for
example, if you decide that you no longer want to use a particular address on the
blockchain anymore you can actually send a note to the blockchain that cancels it,
and transactions to that address from that point onward will be rejected by
all the nodes on the system. And this is partially implemented in permissioned
blockchains, but the problem there is that the issuance and revocation
generally is triggered out-of-band – so if you take something like Multichain,
you set up your address and then through email, or SMS or Whatsapp, or whatever, you
have to send a message to an authorized administrator to actually get permission
to participate on their blockchain, and so part of the solution is missing there.
And of course in open block chains there is nothing like this at all. So, hope
you found that interesting and I’ll see you in the next video soon. Bye for now!