Patent Suggest’s Amazon Web Services Will Accept Bitcoin As Payment
In mid-2014, Amazon was awarded a patent that signaled the cloud-computing giant’s intentions to accept Bitcoin as a form of payment for its web services.
According to a report by CoinDesk, patent 8,719,131, filed on March 29, 2012, involves allocating financial risk and reward in a multi-tenant environment.
This patent would allow AWS customers the opportunity to pay for cloud-services anonomously on a “pay-as-you-go” basis. For instance, the system described in the patent states that it is not mandatory for the resources to be associated with a specific user-account, and can be allocated and made available as long as payment has been provided. If a user desires the resources for extra processing, then that user could simply submit another request with the required additional funding.
Alongside this, the patent also identifies a system that could be compared to an exchange-like market place where users lend and rent computing resources in the AWS Network. In essence, this would allow for Amazon to create a sharing-economy of cloud-computing services, where computational resources are lent by one entity, and rented by another. And, according to the patent, payments for these services can be accepted across a variety of means, but pin-point to the use of cryptocurrencies, such as Bitcoin.
According to the patent abstract:
“Multi-tenant resources can be funded using payment submitted with requests for those resources, such that the resources do not need to be associated with a specific user account.
A resource can be allocated and available as long as payment has been provided. If a user wants the resource to be available for additional processing, for example, the user can submit another request with additional funding.”
The patent also provides detail as to how funding would work:
“The funding can come in the form of donations from any user, or in the form of investments where the investor expects some return on the investment in the form of revenue, visibility, or other such compensation.
One or more management components can track funding for various resources, can accept and select bids for period of sponsorship, and can manage various donation models.”
As described, the AWS system would require a source of funding, a form of digital-cash payment submitted upon request. Bitcoin stands as one of several options, but is pointed out specifically within the patent:
“Various types of digital cash, electronic money or crypto-currency can be used, such as bitcoins provided by the Bitcoin P2P Currency System.”
While using Bitcoin as a form of payment on the AWS Network sounds ideal, it certainly isn’t practical. Well, atleast not yet. You see, Amazon Web Service customers have the option to use their rented computational resources for whatever amount of time they’d like, even as little as an hour. Therefore, speed in the payment submission process is essential, and to this date, Bitcoin has yet to acquire this trait, allowing for a mere 16 transactions per second as of the August 1st hard fork.
Overall, this patent could lead Amazon into great advancement when it comes to utilizing Blockchain Technology and accepting cryptocurrencies as forms of payment. Amazon Web Services has grown substantially over the years, and this patent would allow for an attractive “a la carte” and “pay-as-you-go” system to lend and rent computing resources on the AWS Network. In other words, the approach is this: take what you need and pay as you go, no obligations, no requirements, and no subcriptions required.
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