Square Inc (SQ), the American-based business solutions provider, has partnered with the Open Invention Network (OIN). Jack Dorsey, the owner of the social media platform Twitter, is also the founder of S. Apart from promoting Bitcoin adoption, the main reason for forming the partnership is to limit crypto litigation.
The Deal with Crypto and The Law Makers
Ever since its inception, the word ‘cryptocurrency’ has been a bad taste in the mouths of policymakers in different nations of the world. However, none has been as forward as China and the United States. The Securities and Exchanges Commission (SEC) has been hot on the heels of different crypto assets, pursuing them with lawsuits. The latest victim is Uniswap (UNI) which was put under the scrutiny of the SEC. Other cryptos, including Ripple XRP (XRP), Ethereum (ETH), and even Bitcoin (BTC), have crossed paths with the SEC.
For this reason, Jack Dorsey looks for a way to cover himself and his company against legal action by lawmakers in the United States.
What is the Open Invention Network (OIN)?
Patents are very powerful in protecting innovation. With a patent, inventors receive revenue in exchange for public disclosure. Hence, any person or group needing to use the piece of innovation has to pay the inventor. However, in this current system, technology has faced many waves of abuse that are hampering innovation.
OIN, a global patent non-aggression consortium, aims to solve this problem. OIN makes its members pledge to make their technology open source for all members in the consortium. The initial reason for creating OIN was to protect Linux, an open-source technology standard, from patent litigation.
How will Square Inc Benefit from Joining the OIN?
Square Inc has been forthcoming about its interest in Bitcoin technology. The company owns Cash App, which is one of the fastest-growing payments apps in the United States. According to Square Inc., the app delivered net revenue of over $4 billion in Q1 of 2021, bagging a profit of $495 million for the company. In 2018, Square added Bitcoin functionality to the app. In doing so, the company made itself a target for the prying eyes of the SEC.
By joining OIN, Square is protecting itself from extended legal battles. While in the consortium, Square’s technology is open (but only to the consortium members).
How does the Partnership Promote Bitcoin?
Jack Dorsey, not too long ago, hinted at Square building its Bitcoin hardware wallet. This will propel it further into the crypto limelight. Moreover, Jack also is looking to building a Decentralized Exchange (DEX) for Bitcoin.
The Partnership forsters bitcoin adoption even as El Salvador makes BTC a legal tender in the nation. Ukraine is also looking into this option, with over 100,000 BTC in its reserves. MicroStrategy just added 5050 BTC, bringing its total BTC holding to just above 114,000. Square itself has more than 10,000 BTC in its treasury.
With what OIN is accomplishing, more technology companies should join the consortium. Square capital is now protected from hundreds of lawsuits by merely becoming open-source under cover of the OIN consortium. Other tech companies could borrow a leaf from Square.