Winklevoss Twins Secure Patent for Crypto Key Storage System

While the Winklevoss brothers, Tyler and Cameron, patiently wait for the necessary regulatory approval to launch their bitcoin-based exchange-traded fund (ETF), they continue to amass intellectual property (IP) rights in the form of patents on the innovative blockchain technology and cryptocurrency offerings which will allow them the potential to gain big in future. (See also, SEC Rejects Winklevoss Bitcoin ETF Plans.)

The U.S. Patent and Trademark Office (UPTO) recently published the details of the patent won by Winklevoss IP LLP, a company associated with the Winklevoss twins. Filed under the title “Systems and methods for storing digital math-based assets using a secure portal,” the patent describes the plan to build a secure and isolated network of computer(s) and suitable writing devices which are capable of generating “digital asset accounts” for securely storing cryptocurrencies and other digital assets.

The proposed system envisages developing an account administrative system for digital asset based on a mechanism for protecting asset keys. Using an isolated computer, digital asset accounts, capable of functioning over a blockchain network, can be generated and maintained. One or more private keys and a digital asset account identifier can be generated and linked to the digital asset accounts. The mechanism supports segmentation of the generated keys into parts which can be written onto an external memory device, like a flash drive, CD, DVD, or on a paper or a laminated card. As keys can be segregated, their different parts can be stored on different cards or devices. For instance, one set can be stored on paper, second on a laminated card and third on a DVD. The rightful owner can access the secure storage by providing all three forms of identification.

The isolated computer system (or network) will act as a cold storage, but it will be able to securely connect to the blockchain network as and when required to process transactions. The patent document explains various embodiments on how the system can be utilized for offering cold storage services, key storage services, and storage of keys by a digital asset storage service. The usage can also be extended to offer services around cryptocurrency-related exchange-traded products (ETP), including accounting. 

Winklevoss Twins Accumulate Crypto Patents

The owners and founders of Gemini crypto exchange, the Winklevoss brothers have a big list to their credit for crypto related patents. In May, they secured a patent linked to the functioning of a system that settles transactions for ETPs tied to cryptocurrencies. It was followed by another patent won in June on the creation of ETPs tied to cryptocurrencies and digital assets. Since December of last year, the twins have secured eight different crypto-related patents. (See also, Winklevoss Twins Win Patent for Crypto ETP.)

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies. 

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