It's been obvious that Amazon was going to dip their toes into blockchain territory for months now. I wrote about it awhile back when they took the domain names:
https://www.ethnews.com/amazon-patent-describes-marketplace-for-bitcoin-user-data
I never would have thought they'd go this direction though, I assumed they'd make their own cryptocurrency. NOPE! Amazon is developing technology to compile all relevant blockchain information into a database and sell it to whoever's paying. The first thing they are going to do is start identifying Bitcoin transactions. They will track IP addresses, public keys, goods transfers, physical addresses, and anything else they can get their hands on to identify the buyer/seller and service paid for.
Most people see this as an attack on the blockchain. Amazon is trying to peel back the anonymity that we value. Most people assume (correctly) that the government (IRS) will be allowed to purchase this information and come after citizens for tax evasion or other illegal activity. They also correctly assume that other corporations will buy this information to profit from marketing and ads. Personally, I read into this development as incredibly amazing news.
In a recent post I concluded with the prospect that privacy coins are highly undervalued. This technology that Amazon wants to create gives privacy coins the most legitimate reason to exist ever conceived. Protect your information, use a privacy coin. However, this is just the tip of the iceberg.
In my post about ultimate blockchains I conclude that certain ultimate blockchains can only be created if we have a way to identify bad actors and remove them from power. Thanks for doing the work for us Amazon! This technology is sorely needed. Blockchains will embrace this technology where it is needed and ferociously reject it where it isn't welcome.
Steem and EOS, perhaps all future delegated proof of stake coins, need this technology. We need to know who is who so bad actors can't just make anonymous accounts and continue to exploit the system with no consequence. This technology is good for The Blockchain on every level even though on the surface it looks terrible. Well, maybe not every level.
Amazon isn't going to stop at Bitcoin. They are going to start data-mining every blockchain. Which better blockchain to data-mine than one based on social media? What happens when they start linking Steem accounts to real names, addresses, emails, and phone numbers? What happens when they use AI to scan everyone's posts as they sell our opinions and purchase probabilities to the free market? It will be annoying but we'll cross that bridge when we get there. It's all part of the path we need to take.
https://steemit.com/blockchain/@rakim/cisco-is-patenting-the-blockchain
Check out that post! Cisco is going to replace the complicated authentication structure of the Internet with new blockchain technology that is way more efficient. This will show that world that blockchain isn't just for cryptocurrency, it has a wide range of incredibly useful applications.
These huge companies coming into the blockchain space and laying down patents is an amazing thing for cryptocurrency adoption in general. There are many people who don't trust in the value of blockchain technology, but trust that these companies know what they are doing. When these companies make huge blockchain plays, the naysayers are forced to change their mind about cryptocurrency.
Normally, patents stifle innovation by limiting technology to one centralized group. This group retains control of the tech for an absurd amount of time. However, patents only apply to centralized organizations. They can not be enforced when used in a decentralized manner. Just like pirating songs or movies, it will be very hard to take legal action against decentralized entities who break patent law. This is a win-win situation for the blockchain community. These patents stop other centralized corporations and governments from using the technology, but we will still have free reign to exploit them.
Given this perspective, how could anyone possibly think that these patents are a bad thing? This is great news. Megacorps are entering a space where everyone benefits from development. Go go gadget blockchain!
