728_header.jpg (23748 bytes)
 Home 
 EB Blog 
 AB Blog 
 Letters 
 Podcasts 
 Forums 
 EPIS 
 Classifieds 
 EKG 
 Ratings 
AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Wed May 28 2014 20:38:28

Amazon AWS Prepares for Bitcoin, New Patent Shows

By: Brian Cohen
Sponsored Link
As we first reported in EcommerceBytes, eBay filed a patent application incorporating Bitcoin, and eBay CEO John Donahoe revealed the company is considering integrating Bitcoin into PayPal. Over at Bitcoin Magazine we were the first to report on eBay's so called Gift Token patent filing.

While eBay has been flirting with Bitcoin, one has to wonder what plans if any, Amazon has in store for everyone's favorite cryptocurrency? CEO of Overstock.com Patrick Byrne has gone on record saying Amazon will have no choice but to accept Bitcoin.

Overstock.com itself began accepting Bitcoin shortly after his interview with News BTC late last year. Mr. Byrne was the keynote speaker at "Bitcoin 2014" this month and boldly claimed that Overstock.com, which is a publicly traded company on NASDAQ, is mulling a dual listing for his company's shares on decentralized exchange on the Bitcoin Blockchain e.g. CounterParty.

While Amazon doesn't appear to be in any hurry to offer Bitcoin on its marketplace, it was awarded a patent that includes Bitcoin as a funding source for its cloud computing services, known as AWS. The United States Patent and Trademark Office (USPTO) granted patent 8,719,131, "Allocating financial risk and reward in a multi-tenant environment," to Amazon Technologies, Inc. The patent was originally filed on March 29th, 2012.

The patent appears to be a flexible pay-per-use cloud computing scheme that Amazon could integrate into AWS. The patent covers a broad range of uses including allowing for "anonymously spawned" frictionless pay-per-use resource allocation as well as a crowdsourcing fundraising mechanisms to provide access to these resources.

Users would get access to Amazon services without having to provide their private credentials such as credit card number and home address in part by paying for services with Bitcoin.

Here's the background from the patent filing:

As an increasing number of applications and services are being made available over networks such as the Internet, an increasing number of content, application, and/or service providers are turning to technologies such as cloud computing. Cloud computing, in general, is an approach to providing access to electronic resources through services, such as Web services, where the hardware and/or software used to support those services is dynamically scalable to meet the needs of the services at any given time. A user or customer typically will rent, lease, or otherwise pay for access to resources through the cloud, and thus does not have to purchase and maintain the hardware and/or software to provide access to these resources.

In many cases, the costs of running a Web site, application, or other offering using these resources can become significant when many users utilize these offerings. Conventional approaches to funding these offerings can be somewhat limited, and in some cases can result in the offering no longer being available when an owner of a resource cannot afford to maintain an offering. Further, sometimes a customer only needs a resource for a specific task or period of time, and conventional approaches to obtaining the resources whereby a user must obtain an account, set up a resource usage schedule, and perform other such tasks can decrease the efficiency of various processes.

And here is an extract from the Patent mentioning Bitcoin:

"... where the request is to perform a single task, the user may not even have to provide any type of identity signing a request, user credentials, or other such identifying information. As an example, a user might submit a request to obtain dedicated access to an application server instance for a period of two hours, and can provide digital cash with the request in the amount needed for the requested two hour period of time. Various types of digital cash, electronic money, or crypto-currency can be used, such as Bitcoins provided by the Bitcoin P2P Currency System…Requests received with digital cash ...can be completely anonymous donations."

Do you think Amazon is planning to fully embrace Bitcoin? Let us know below!

About the Author
Brian Cohen has been an active member of the eBay community since May 1998, and he currently trades under the member name Bidofthis.com. His first AuctionBytes article was published in May 2002. Brian's reporting on Bitcoin in 2013 has been referenced in numerous publications including The Register, Tech Week Europe, TechCrunch and PC World. Brian can be contacted through his website at BidofThis.com where he always has a "little Bid of This and little Bid of That."



Comments (14) | Permalink
Readers Comments

Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Anonymous Annie
       
Thu May 29 06:59:25 2014
All this newfangled stuff confuses me. (Anyone else remember when you had to use regular mail to submit your *hand-written* order form... and enclose a *paper* cheque... and wait for the cheque to clear... and wait an additional 4-6 weeks before the order would arrive?)

This just isn't for me... as a seller **OR** as a buyer.
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Al G
       
Thu May 29 07:33:09 2014
Sounds like a payment service for cloud computing applications/services.

I'm unsure if a purchase agreement for a material good will fall under this scenario.

Then again, my knowledge of the computing industry is by now a little stale - Moore's Law of IT (your ignorance of the current situation of information technology doubles every 18 months),
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Leafgreen
       
Thu May 29 13:14:57 2014
Brian and Julie, please don't let Annie's comment dissuade you from reporting in the future on BTC or other cutting edge technologies. There are plenty of your readers who do get it.
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Puck
       
Thu May 29 14:11:35 2014
eBay has applied for a patent on Oxygen and Nitrogen so they can charge everyone for breathing air.
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: LAbay This user has validated their user name.
       
Thu May 29 16:29:53 2014
I own Bitcoin and I am incorporating Bitcoin as an accepted method of payment on my redesigned website.  Any eCommerce site that overlooks accepting Bitcoin will miss out on sales. Soon, Bitcoin technology will be on every web browser and cell phone.
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: elancep This user has validated their user name.
       Web Site
Thu May 29 19:25:16 2014
The problem with these currencies is that they aren't backed or regulated by anyone. Who are you going to take to court if someone defrauds you out of your Bitcoins?
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Philip Cohen
       Web Site
Thu May 29 20:21:39 2014
Bitcoins? Why would any buyer forgo the protections provided by his credit card and instead pay for any purchase, particularly an online purchase, with Bitcoins which have to be acquired/disposed of anyway?

Only in your dreams Mr Bitcoins Supporter ...
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: Tiffee Jasso This user has validated their user name.
       
Thu May 29 20:36:43 2014
If Bitcoin had come along 40 years ago, it would been a Salesman dream for those who always tried to figure out how to sell hot air for real money. In our current electronic transfer world, someone did figure out how to sell and trade invisible and imaginary money for real hard currency and make a profit.

"Inherently, we all spin our own webs of destruction. It is
the human thing to do.” Tiffee Jasso 2013
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: Mimi This user has validated their user name.
       
Thu May 29 22:54:16 2014
I agree with Tiffee. I'm consider myself fairly intelligent and I like keeping up to date about what's going on in the computer world. and I still can't figure Bitcoins out. I won't have any part of it. Who governs Bitcoin? Are there any regulations? Sigh. Always some scam coming along.  
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Al G
       
Fri May 30 07:30:56 2014
Better off in "investing" in gold.

Only around $1250/oz down from $2000 a few years ago.

Don't worry, it'll go up again - so now's the time to buy.

Gold is not a currency, it is a commodity.

Bitcoin, from what I see is also a commodity, not a currency. It is not subject to fiscal or monetary policy and so it is inherently unstable.
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: LAbay This user has validated their user name.
       
Sat May 31 17:01:48 2014
“There are three stages in the acceptance of a new idea.  The first is ridicule.  The second is violent opposition.  In the third and final stage, the idea is accepted as self-evident.”
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: E-pins This user has validated their user name.
       
Sat May 31 19:15:35 2014
"It is a logical fallacy to assume that simply because an idea is severely attacked, it must therefore have merit. Any geographer attempting to resurrect belief in the flat-earth hypothesis, for example, would be harshly critized by their colleagus, but this criticism cannot be adduced as evidene that flat-earthism is on the rise."
Science, Pseudoscience, and The Three Stages of Truth

Is Bitcoin A Safe Bet? A Quick Guide To Cryptocurrency
www.forbes.com/sites/duncanrolph/2014/04/23/is-bitco
in-here-to-stay-a-quick-guide-to-cryptocurrency/

"Overall,
cryptocurrencies have a long way to go before they eclipse credit cards and traditional currencies as a tool for global commerce. They have displayed potential as an investment alternative, but are still not a must have asset class in your portfolio. In the next several years, cryptocurrencies are likely to evolve into a niche electronic currency that could become a realistic alternative to other electronic payment processing platforms."

$116 Million Bitcoins 'Found' At MtGox And How To Protect Your Wallet
www.forbes.com/sites/jameslyne/2014/03/21/116-million-bitcoi
ns-found-at-mtgox-and-how-to-protect-your-wallet/

"MtGox
(previously the worlds largest Bitcoin exchange) has been in bankruptcy proceedings in the Japanese courts since a major hack in which nearly 850,000 bitcoins were stolen by hackers. Nasty."
"most people do not know how to protect their BitCoin wallets and are just waiting to be hacked"

"The laughed at Copernicus. They laughed at the Wright Brothers. Yes, well, they also laughed at the Marx Brothers. Being laughed at does not mean you are right."
Michael Shermer, Historian
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
This user has validated their user name. by: Philip Cohen
       Web Site
Sun Jun 1 08:32:36 2014
"Overall, cryptocurrencies have a long way to go before they eclipse credit cards and traditional currencies as a tool for global commerce. They have displayed potential as an investment alternative, but are still not a must have asset class in your portfolio. In the next several years, cryptocurrencies are likely to evolve into a niche electronic currency that could become a realistic alternative to other electronic payment processing platforms."

I can’t see how such cryptocurrencies can ever even approach, let alone eclipse, traditional credit cards (and their now digital wallet extensions) as a tool for “global commerce”! And Bitcoins will likewise unlikely ever be a realistic alternative to any other electronic payment processing platform! Bitcoin supporters who believe otherwise are hallucinating severely and should seek medical help promptly …

The Bitcoin is effectively a foreign currency; even for a “local” transaction, a Bitcoin transaction involves a “foreign” currency, with all the complications that dealing in such entails. Anyone that “holds” Bitcoins is effectively speculating in foreign currency. And if you think that the Bitcoin exchanges that deal in this “foreign” currency are going to do it any cheaper than traditional FX traders, dream on …

This Amazon/Bitcoins story is surely little more than another Amazon publicity stunt. Notwithstanding that some payees would prefer such a form of payment that, in its base form, has no possibility of being reversed, why would any sane buyer/payer choose to, firstly have to acquire such cryptocurrency and then forgo the system and statutory protections that come with the use of a credit card for any online purchase?

Sorry, but I can’t ever see it happening; but then, maybe eBay’s Johnny Ho can …

And, “displayed potential as an investment alternative”? They have to be joking …
Amazon AWS Prepares for Bitcoin, New Patent Shows   Amazon AWS Prepares for Bitcoin, New Patent Shows
by: Will This user has validated their user name.
       
Tue Jun 3 09:21:35 2014
Just my opinion, I don't think it's necessarily Amazon believing in the Bitcoin format, but rather, Amazon getting ready in case it finally comes to light in an everyday, household situation.

If Bitcoin never comes to be as imagined, no harm no foul for Amazon.


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.
  Rate Services
  Amazon Fee Calculator
  eBay Fee Calculator
  Etsy Fee Calculator
  Auction Calendar
  Collectors' Links
  eBay Promo History
  Bookshelf
  Fraud Resources
  Drop-Off Store Laws
  Payment Holds
  Ecommerce Resources
  Photo Tips
  Marketing Inserts
  Yellow Pages
  Advertising
buyersmarket2aaa2.JPG (7729 bytes)
 AB Blog Recent Posts 
 EB Blog Recent Posts 
 EB Blog Recent Comments 


Subscribe in a reader



Archives



Powered by Perl Web Blog
© 2005/2016 Ranson's Scripts