So-called blockchain company Veritaseum sues Coinbase for patent infringement and is seeking $350 million in damages. When I first saw this news, the name of the company that is suing Coinbase caught my attention. One of my favorite youtube channels is called Veritasium. It creates very intersesting science related content. Please don't confuse the two.
The founder of Veritaseum filed a patent infringement case against Coinbase and alleges that Coinbase had used his patent for secure digital transactions. I have never heard of Veritaseum before. At first I thought maybe this is one of the patent troll firms, whose mission in life is making money from patents they hoard without producing anything useful. Then, looking a little bit into Veritaseum, it looks like a company whose goal is profiteering from crypto revolution. They even have a token, VERI.
This is how their website answer to the question of "What is Veritaseum?"
Veritaseum is a highly disruptive revolution in finance, investment and value. It uses blockchain technology, smart contracts and distributed computing to aid industries and entities suffering from high economic rents, undue friction and gross inefficiencies.
At it's simplest, Veritaseum is the gateway to peer-to-peer capital markets. It allows any two or more individuals to deal directly with each other in transactions of value without reliance on centralized or authoritative third parties. They can do this without concern for typical legacy credit or counter-party risk.
They have a wall of text trying to answer this simple question. But I stopped here, and not interested in what they are selling. They portray themselves as innovators in payment systems, but what they are describing as phenomenal payment system has already been brought forward with bitcoin. Bitcoin was given to the world for free, without any patent nonsense.
I find stories like this hilarious and sad at the same time. It is funny how this lawsuit is about a payment system that doesn't require trust in third party when neither of the parties in this lawsuit have contributed anything to this. It has been Satoshi's bitcoin that came up with a working system that is revolutionizing money. Now these two hijackers of decentralization are fighting for rights over such system. That is the sad part. Unfortunately, the great movements for decentralized systems, trustless payments, web3 are being hijacked by entities that have zero contribution to these concepts and practical applications.
I have no sympathy for Coinbase for the same reason. Coinbase and its leadership have mislead many by using slogans about decentralization, when in their business and listing practices they haven't done anything to facilitate decentralization. In fact they have done the opposite. One of the examples of such actions is how they acquired one of the best crypto wallets BRD, just to get rid of a competition.
However, there are good thing that can be said about Coinbase as well. They have served as a bridge between the crypto and fiat world, which is also important in the early stages of the financial innovation. They have done a great job building a crypto brand. Nothing wrong with seeing opportunities and building a business in the crypto world. The problem is the deception tactics of presenting themselves as something that they are not. They are not advocates for and facilitators of decentralized systems.
Veritaseum seems, of course, doesn't look any good either. Probably thousand times worse. What good purpose patenting a payment system can have? They don't even have their own blockchain. Correct me if I am wrong about this, but at the first glance it looks like their token is ERC-20.
Truly trustless payment or monetary system requires decentralization. Decentralization itself requires transparency and this transparency can achieved by open source code, not some proprietary patented system. I don't know how this lawsuit will go and what could be outcome. But I am pretty sure I wouldn't want to be using anything Veritaseum.
It also looks like Veritaseum had problems with SEC in 2019 and faced charges of running a fraudulent scheme. They ended up paying SEC $9.4 million for the company, and $1 million for charges against the founder in a settlement agreement.
What do you think about Veritaseum and this lawsuit? Does this lawsuit have any merits? Does Veritaseum has anything good to offer?
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I clicked on this post... because of Veritasium. I was both happy to read that you made the same remark at the beginning of the blog, and disappointed with the rest of the story. This just looks like trolling from Veritaseum. Nothing more, nothing less (I reuse the word of @videoaddiction as I find it appropriate). The sadness in this story is that it may eventually work :/
Cheers!
Veritaseum should probably be sued by Veritasium for defaming such a great brand.
and that's why you just don't build a business anymore because anyone and everyone is just looking to sue or screw over everyone else. It's pretty ridiculous and I have a feeling it's going to start catching up with us really soon in terms of people giving up launching an business and being innovative. Instead that's going to move to decentralized options. To me patents are a scam and worthless. There was a day when they actully provided value but now it does nothing but hold back innovation and rewards the lazy.
@bitcoinflood, this seems like an ideological difference in business philosophies. Patents have been a cornerstone of traditional business innovation for centuries, whereas open-source is relatively new by comparison. Is it inherently wrong for a creator wanting to protect their creation and profit from it? Do you see copyrights or trademarks similarly to patents as worthless?
With that being said, the merit of the lawsuit itself is a different thing.
I agree, decentralized options can be a solution for the patent abuse and loopholes.
What Veritaseum trying to do is kinda troll. It seems they claim the innovation which has been come up anonymously.
Yes, I don't understand the logic behind what they are trying to do.
I think the lawsuit is meritless and it's not like sending payments digitally is anything new. It makes me wonder if the method of transferring is even the same because I am sure Coinbase made its own code for this. So I just don't see them offering anything that is worth it.
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I agree. I am sure Coinbase had and has resources to build their own tools and software.
Cases like this really need to be done with reasonable ideas and strategy to avoid falling in problems like this.
This seems to be a case where the actions of such a company slows the growth of cryptocurrency popularity among new users. It is good when we see everything crystal clear. But we need more people like that in crypto!
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I see as a borderline scam. Unfortunately, crypto attracts scammers as well.
It's true. But crooks only pluck from this pie, and they do it very rudely, in my opinion...
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I think Veritaseum would lose in court against a giant like Coinbase which has the cash flow to hire good lawyers.
Veritaseum ! I am hearing it for the first time. After asking uncle Google, It got the approximate meaning.
The company call their shit-action a revolution! Lol .. Everybody tries to blow everybody' own triumph.We have dozens of news channel in our country and all of them call themselves #1..lol
The same way the company Veritaseum call itself a harbinger..🙊It is their stand but I need to hide my face somewhere as it feels me shy.
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I never heard of them, but $350 mil is a lot! they'll probably just settle..
you should trust the justice of your country 😂😂😂😂
Always!
Interesting. Nice write up. Sounds like they may not win this case either.
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Shame on coinbase. I myself use coinbase. But their transaction system is very good. This news actually scares the user.
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a fundamental aspect of blockchain technology is trust . Once there are deceptive tactics in transaction dealings there will always be a question mark as regards transparency. Both firms making the headlines do so well at preaching decentralization but obviously do not practice it .
yes I also use coinbase and it's been a few weeks my coinbase account can't be opened
Things like this are making coinbase to lose the trust and integrity people have for the exchange