Arent Fox Obtains Patent for Crypto-Resource Recovery Using Blockchain Technology | Arent Fox


There has been a huge increase in blockchain technology innovation and corresponding patent filings in the United States and around the world. Bloomio, a Swiss fintech pioneer, has developed a blockchain-based investment platform that connects investors and startups and raises capital using an equity tokenization process, whereby investors obtain crypto-assets (such as crypto-coins / tokens) derivatives From equity in startups. Individual cryptocurrency owners typically keep their cryptocurrencies and conduct crypto transactions via cryptocurrency wallets, which can be accessed using the owner’s private encryption key. If the key is lost or stolen by a cybercriminal, the wallet and all crypto assets may no longer be accessible to the owner.

US patent no. Bloomio’s 10,790,976 addresses this security problem by providing a multi-signature crypto-wallet and key recovery mechanism. When an owner requests the recovery of their private encryption key, Bloomio’s system generates a blockchain transaction data structure that includes a script to replace the owner’s personal private encryption key with a replacement key. The system then generates digital signatures based on the data structure using other private cryptographic keys associated with the multi-signature wallet – a key from the cryptographic service provider and a key from a key vault organization. The data structure of the blockchain transaction, together with the generated digital signatures, are sent to the blockchain network for validation, subsequently allowing the owner to access their crypto-wallet using the replacement key.

The main challenge in pursuing fintech patents is overcoming the eligibility denials under 35 USC 101 ahead of the Supreme Court decision Alice Corp v CLS Bank, which limits the patentability of some business methods. This challenge can be even greater if your patent application is awarded to USPTO 3620 or 3680 art units, which review business method patents and are known for their difficulty in persecution. Patent grant rates for these art units are three times lower than the USPTO’s overall grant rate of 70%. Knowing these challenges in advance, Arent Fox’s patent attorneys have carefully drafted Bloomio’s patent specifications and claim to emphasize the technical aspects and improvements of the invention. As a result, Bloomio’s patent application was awarded to art unit 2436, which examines encryption and cyber security technologies and has a 76% grant rate.

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