BOTS, Inc., a global technology company specialized in Blockchain-based solutions including decentralized finance applications, cybersecurity, crypto mining, mining equipment repair, and warranties, announced today that it filed a blockchain-based provisional patent application in the United States Patent Office (USPTO).
The patent application is directed to a novel method for distributing crypto dividends to the shareholders of publicly traded companies that are designed to allow blockchain-based crypto-dividend distributions. The BTZI Team expects that this newly developed system and method will open up the window to a brand-new way to reward shareholders. In addition, BTZI believes that this innovative method could revolutionize ways of distribution of profits by a corporation to its shareholders. Dividends are a way to distribute profits to shareholders as a means of thanking them for their support and encouraging additional investment. Dividends also serve as an announcement of the Company’s success.
The filing of this provisional patent application directly relates to BOTS Inc.’s goals of developing new blockchain-based technologies. If approved, BTZI believes this patent could significantly disrupt the dividend distribution processes for corporations.
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With yesterday’s spectacular launch of $BITO as the first SEC-approved Bitcoin futures ETF, the crypto space is beginning to mature, which will open many doors, including the acceptance of cryptocurrencies as a form of dividends. It wouldn’t be hard to imagine crypto enthusiast Elon Musk learning of our pending patent and being inspired to begin paying his shareholders dividends in Bitcoin, for example.
BOTS, Inc. intends to be the world’s first publicly owned and traded stock to pay a dividend in cryptocurrencies. The race has now begun with BTZI as the leading contender to meet this historical milestone, having invented the way forward.
The recent Monthly Fool article, “What are blockchain or crypto dividends?” discusses this subject but regarding how cryptos themselves pay various forms of dividends, which could become a secondary form of dividends once shareholders begin to own cryptocurrencies and as soon as they receive their crypto dividend and hold for additional secondary dividends. For example, if Bitcoin had been paid to shareholders of a pubco pre–Bitcoin Cash, Bitcoin’s hard work would have given those that held Bitcoin, Bitcoin Cash, like a dividend in their wallets.
Blockchain typically describes blocks of digital information involving transactions that are stored on a public ledger. For a new “block” to be added to the chain (thus adding a new unit or transferring an existing unit of currency), the information must first be verified. One of the first mechanisms for creating new blocks of data in the cryptosphere was “proof of work,” and using it is commonly referred to as “mining.” Proof of work is a cryptographic puzzle that needs to be solved for a new block to be created, thus awarding the solver with a new unit of digital currency in the case of Bitcoin, for example. Bitcoin, Litecoin, and Bitcoin Cash all use the proof-of-work system. Historically, mining new blocks has been a lucrative way to make money in the crypto universe.
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However, some cryptocurrencies now pay a “reward,” often called a cryptocurrency dividend — sometimes passively for simply holding the digital currency in a digital wallet and sometimes for taking a specific action. These rewards aren’t like stock dividends, which are paid from the excess cash a company generates. Payouts sometimes can vary, sometimes being calculated daily or monthly, and are sometimes dependent on the trading volume on a cryptocurrency exchange — which makes them a variable type of passive income.
Another crypto reward comes from “staking” or tokens. Staking tokens is an alternative to mining new blocks of a cryptocurrency. Owners of cryptos can “stake” their coins (basically, lock them up in their digital wallet) for a chance to be randomly selected way to create new blocks in the blockchain. The reward is generally based on a number of factors like the number of coins owned, how long they’ve been staked in a digital wallet and the total value of the cryptocurrency in question. Popular staking cryptocurrencies include NEO and Komodo, and Ethereum also recently migrated from a mining system to “proof of stake.”
One important point to bear in mind is that rewards paid on cryptocurrencies (as well as digital currency obtained by mining) are, on average, more variable than dividends on company stock (but sometimes pay a higher yield).
We believe that Cryptocurrencies are here to stay. Coin Market Cap, a popular information site on all things crypto, lists close to 10,000 of them. We also believe that corporations will soon begin distributing crypto-dividends to their shareholders.
BOTS. Inc. seeks to obtain patent protection for its blockchain and other commercial technologies, as well as registering other intellectual property rights for its technology assets in the United States and internationally. BOTS, Inc. aims to protect the technology, inventions, and improvements that are commercially important to the development of its business using the most effective and efficient intellectual property instruments, including patents, trademarks, and trade secrets.
To date, BTZI has a portfolio of several patents with the USPTO. These patents include No. 9,135,787 – “Bitcoin Kiosk / ATM Device and System Integrating Enrollment Protocol and Method of Using the Same.” Known as the “Bitcoin ATM Patent,” this patent is related to the purchase and sale of cryptocurrencies utilizing a Bitcoin ATM or kiosk that allows customers to purchase Bitcoin or other cryptocurrencies by using cash, debit, or credit cards. Many of the elements of that intellectual property (I.P.) will be “standard-essential claims,” which are critical for the Bitcoin ATM networks to operate. Also recently added is an exclusive license of the intellectual property for its Bitcoin ATM I.P. portfolio. The I.P. portfolio now includes licensing agreement for patent US 10,332,205 B1 (Bitcoin kiosk/ATM device and system and method of using the same).
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