nChain’s Patent Portfolio Analysis

In 2023, nChain announced a partnership with Japan’s FinTeK (Keio University) to expedite the adoption of blockchain technology in the region. This collaboration showcases nChain’s strategy to broaden its influence in key markets while holding the most extensive patent portfolio in the blockchain sector.

With approximately 695 patents as of September 2024, nChain has become a leader in blockchain innovation, covering areas such as bitcoin, digital identity, and decentralized finance (DeFi).

An analysis of nChain’s patent portfolio provides insight into its business strategy and offers detailed competitor analysis. Let’s explore the key insights from its patent portfolio, including filing trends and partnerships, which are shaping its influence in the industry.

nChain’s Patent Filing Trends

An analysis of nChain’s patent filing trends from 2014 to 2020 reveals a fascinating trajectory. The company began with very low filing activity, registering just two filings in 2014 and one in 2015. However, filings surged significantly in 2017, reaching 144, followed by a peak in 2018 with 276 filings—marking the highest point in nChain’s patent timeline. 

“This sharp rise in filings correlates with the broader global boom in blockchain and cryptocurrency technologies during this period. The late 2010s witnessed a surge in interest from industries seeking to leverage blockchain for decentralized finance, smart contracts, and digital identity solutions, reflecting nChain’s aggressive expansion in the blockchain space”

After the 2018 peak, filings dropped to 120 in 2019 but rebounded slightly to 134 in 2020. This trend depicts nChain’s aggressive expansion in the blockchain space during the late 2010s.

(Source: Derwent Database)

Key Law Firms Managing nChain’s Patents

nChain’s patent portfolio has been expertly managed by several top law firms, ensuring strong intellectual property protection across various jurisdictions. Thus, companies interested in filing blockchain patents can approach these law firms/attorneys.

1. Murgitroyd & Company (218)
2. Karen Fraser (88)
3. Page White Farrer (50)
4. Cerian Jones (43)
5. Davis Wright Tremaine LLP (39)

Patent Filing by Region

The majority of nChain’s patents have been filed in the UK, followed by the USA, China, and Japan. 

Interestingly, while nChain’s filings in the UK decreased between 2019 and 2023, the opposite trend was observed in Japan. 

(The chart below shows the percentage of total patents filed by nChain in different countries from 2019 to 2023)

This rise in filings in Japan is particularly noteworthy given nChain’s recent partnership with Japanese institution FinTeK (Keio University), indicating the company’s increasing focus on the Japanese market. 

Japan’s adoption of more lenient patent policies, compared to the stricter regulations in the UK, may explain nChain’s decision to shift its focus toward this jurisdiction. 

“Competitors like Tencent, Alibaba (ANT), and Baidu seem to be filing patents at an increasing rate in this jurisdiction. Alibaba, focusing on blockchain applications for payments, digital finance, and cloud, is a major competitor in Japan. Tencent, through its WeChat Pay and Tencent Cloud, has been developing blockchain solutions for secure digital transactions and gaming, further intensifying the competition.

It will be interesting to see how nChain strategizes its patent filing to be ahead of its competitors.” Ashish Sharma, Senior Research Analyst GreyB.

Companies Building Upon nChain’s Patented Technologies

nChain’s influence in the blockchain industry is further reflected in the number of forward citations its patents have received. Multiple leading companies are building upon nChain’s patented technologies, with Alibaba’s Advanced New Technologies leading the list with over 430 forward citations. 

Other major companies citing nChain’s patents include Strong Force TX Portfolio 2018 LLC (160+ citations), IBM (80 citations), eBay Inc. (70 citations), and Siemens AG (45 citations).

Top Patents with Licensing Potential

nChain recently launched a blockchain technology licensing program to unlock value from its robust patent portfolio. Based on our research, five patents with high licensing potential have been identified. Examiners have used these patents to reject multiple applications from nChain’s competitors, highlighting their strength and value in the blockchain space:

1. US11120437B2
2. US11455378B2
3. US11606219B2
4. US10735466B2
5. US11455630B2

These patents represent a significant opportunity for nChain to monetize its innovations through licensing programs. A few of these patents, such as ‘466, ‘630, and ‘378, are related to communication security in blockchain networks, which is highly useful in enhancing the protection of data transfers and safeguarding sensitive information within decentralized systems. The ‘437 patent, related to automatic transaction execution using smart contracts, is crucial in improving efficiency and reducing the need for intermediaries in various industries that rely on blockchain-based transactions.

Additionally, the ‘219 patent, which seems related to asset management in blockchain networks, is particularly valuable in enabling the secure and efficient management of digital assets, ensuring trust and transparency in decentralized financial ecosystems. 

These patents address key challenges in the blockchain domain, making them highly valuable for advancing the technology’s practical applications.

Conclusion

As nChain expands its reach into tech-friendly jurisdictions like Japan and collaborates with leading institutions, it will be fascinating to watch how the company evolves in the coming years.

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Authored By: Ashish Sharma & Ayushi Roy