IP issues in Blockchain, Bitcoin, Cryptocurrency & FinTech

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IP issues in Blockchain, Bitcoin, Cryptocurrency & FinTech by Mind Map: IP issues in Blockchain, Bitcoin, Cryptocurrency & FinTech

1. Intro

1.1. Me

1.1.1. working in Hybrid Finance space, and suing blockchain to provide solutions

1.1.2. wont call my self an expert as its very live subject, and everyone is still exploring

1.1.3. we all can learn together and explore this growing dynamic subject.

1.2. What is Blockchain?

1.2.1. It's a technology

1.2.2. Blockchain technology was defined by Satoshi Nakamoto in 2008 via the Bitcoin white paper. Since then, blockchain has been hailed as the most disruptive innovation since the Internet.

1.2.3. Because blockchain is a distributed ledger system that allows anyone with access to the internet to participate in its creation & management.

1.2.4. There is broadly to type of blockchain

1.2.4.1. Public Blockchain

1.2.4.1.1. like Ethereum

1.2.4.2. Permission Blockchain

1.2.4.2.1. like HyFi Blockchain

1.2.4.3. two more (although I don't think it should be classified a blockchain)

1.2.4.3.1. Private

1.2.4.3.2. Consortium

1.2.4.3.3. its made and used mainly for Scalability, privacy & Finality TAT

1.2.5. Decentralization & trust less is the key here.

1.3. What is Bitcoin?

1.3.1. Bitcoin is first known widely accepted private currency

1.3.2. and is the first known application of blockchain

1.3.3. in fact, blockchain is defined in the white paper of bitcoin.

1.3.4. Is it a currency or store of value?

1.3.4.1. its both, and possibly none of them.

1.4. What is cryptocurrency?

1.4.1. the coins that we understand today as crypto currency is actually coined wrongly.

1.4.2. Few of them are currency, few are token with different utilities.

1.4.2.1. better than cryptocurrency, I call it crypto assets

1.4.2.2. electronic cash, governance token, NFT, security tokens, utility, wrapped.

1.4.3. Tokens are a digital tool, which is created to be used rather than stored. This logic gives them property of currency, but does not make it a currency.

1.4.4. stable coins & CBDC are the best example of a currency in a blockchain.

1.5. What is FinTech?

1.5.1. Marriage of Financial services & Technology.

1.5.2. Products of FinTech are more of a habit rather than Products

1.5.2.1. and hence its more tough to regulate it and build laws around it.

1.5.2.2. Lending is best example for a habit which is a product of FinTech.

2. wallets & exchange

2.1. This is a tool that helps you to interact with blockchain & assets in it.

2.2. A wallet is basically a tool that helps in managing address (kind of like an account number) and assets in it.

2.3. an wallet have majorly two component.

2.3.1. Address (public Key)

2.3.2. Private Key

2.3.3. and based on this, wallets can be classified into

2.3.3.1. Custodial wallet

2.3.3.1.1. some custodial have control over your private key

2.3.3.2. non custodial wallet

2.3.3.2.1. you have control over private key

2.3.3.2.2. this is the preferred way to have your assets.

2.4. Exchanges - A crypto exchange is a platform on which you can buy and sell cryptocurrency.

2.4.1. simply trade

2.5. exchanges can broadly categoarised into

2.5.1. Centralised Exchange

2.5.1.1. generally they use custodial wallet to allow people to trade

2.5.1.2. KYC is there but regulation is loose.

2.5.1.3. Gov tries to have a deep control over it, but is failing due to different regulation in diff countries.

2.5.1.4. relatively cheaper for trading compared to deX

2.5.2. Decentralised exchanges

2.5.2.1. mostly they use wallets whose private keys are controlled by users

2.5.2.2. KYC is a big time issue here

2.5.2.3. its like torrent, cant be blocked easily.

2.5.2.4. Relatively costlier due to gas fees, but with growing tech and development, deX is slowly getting an upper edge due to reduction in gas fees.

3. legal validity of bitcoin & cryptocurrency

3.1. Its a very confusing area to talk about

3.1.1. because gov itself is not that clear.

3.1.2. still various country like Wyoming, Malta, India, etc are quite clear with what and how they wanna approach.

3.1.3. P2P protocols are tough to regulate, as no central authority / server / company operates it.

3.2. India: IFSCA - irda, rbi, sebi

3.2.1. very amazing body and I personally feel that this is very powerful

3.2.2. All crypto assets don't attract 30% tax.

3.2.2.1. Only VDA attracts 30% tax.

3.2.2.2. What are not VDA has been clarified.

3.2.3. Jurisdiction Shopping

3.3. Legal validity

3.3.1. as a Tender (medium of exchange) - a big no

3.3.2. as a Store of value - nope

3.3.2.1. as its volatile

3.3.3. As utility token - yes

3.3.3.1. crypto assets plays a very critical re in blockchain & blockchain based apps.

3.3.3.1.1. that's a part of tokenomics

3.3.4. Stable currency - YES

3.3.4.1. if issued by

3.3.4.1.1. gov

3.3.4.1.2. recognised institutions

3.3.5. CBDC - of course

3.3.6. 6 types of crypto assets (broadly)

3.3.6.1. electronic cash

3.3.6.1.1. not legal as medium of exchange

3.3.6.1.2. can someone tell why?

3.3.6.2. governance token

3.3.6.2.1. uni

3.3.6.3. NFT

3.3.6.4. Security Tokens

3.3.6.4.1. highly regulated

3.3.6.5. Utility

3.3.6.5.1. matic

3.3.6.6. Wrapped

3.3.6.6.1. the most legal one

3.4. what make Crypto assets legally valid or viable

3.4.1. its the nature of blockchain (the backbone tech of crypto assets) that makes it legally valid

3.4.1.1. immutability

3.4.1.2. trust less

3.4.1.3. quite secure

3.4.1.4. Time-stamped records

3.4.2. the nature of project

3.4.2.1. purpose

3.4.2.2. working method

3.4.3. Intent of Founder or operator

3.4.4. In a school of though, we have same money being legal and same being illegal (black money)

3.4.4.1. so its the usage that should make a particular crypto asset legal or illegal.

4. IP issues in blockchain

4.1. This topic is quite interesting and is deep

4.2. because Blockchain is not just some technology

4.2.1. its one of the biggest happening to the world of tech post Internet.

4.2.2. few people believe that blockchain has the power to change the way business & internet work

4.2.2.1. including me

4.2.2.2. and this changes life

4.3. Everything we know is powered by contract

4.3.1. and blockchain have given us a new perspective to it, and we know it as SMART CONTRACT

4.3.2. Its changing industries like insurance, banking services, companies operations, and much more.

4.4. IP issues in blockchain have two aspect

4.4.1. solution

4.4.1.1. I am more towards solution or may be lets call it a possible solution

4.4.1.2. Smart Contract has given power to create some amazing solutions.

4.4.1.2.1. IP license management

4.4.1.2.2. FLIPs

4.4.1.3. Evidence of creatorship

4.4.1.3.1. time-stamped record and solid evidence to prove these matters

4.4.1.4. Smart IP rights thru smart contract

4.4.1.4.1. since assets are now smart, IP rights attached with it needs to be executed smartly.

4.4.1.4.2. Like GOLD loan with Tokenised gold.

4.4.2. problem

4.4.2.1. it have given power to common people and digitalised few assets that was ever possible before.

4.4.2.2. IP issues are very common in NFT space

4.4.2.2.1. where a famous design from NFT Project can be used without proper permission in some remote area.

4.4.2.3. A common man have been granted power to create value easily

4.4.2.3.1. and this leads to more copying of that value.

5. link to quiz

5.1. https://quiz.withkeshav.com/ippressor-637983147506156988/1/