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The novelty of Ethereum as indicated by LOCI Score

With the release of our latest software development, Invention Analysis (also known as LOCI Score), we have been able to conduct some really interesting and rich analyses in the past couple months. Two weeks ago we released an article outlining a novelty score and analysis of the Original Satoshi Bitcoin whitepaper. This week, we are sharing another analysis we conducted on another major project of interest, the original Ethereum whitepaper.

Before we dig into the LOCI Score and relevant analysis on the Ethereum whitepaper, it is important to note that we aren’t making a direct comparison between the Satoshi and Ethereum whitepapers, nor are we comparing the two for novelty. However, such a comparison will be made in the future.

Before running the Invention Analysis on the ETH whitepaper, we back-dated the analysis to 2014 to demonstrate relevance at the time ETH was developed. Serving as a means of historical reference, backdating helps to provide a more authentic picture of an items novelty during the time it was developed. After backdating and inputting all of the relevant whitepaper data into Invention Analysis, Figure 1 below demonstrates the first set of results we received. A very unique novelty or LOCI Score of 70 was garnered by the Ethereum whitepaper. This score falls into the range that we refer to as our ‘sweet spot’ which indicates that there is a significant level of novelty and potential for patenting. There weren’t many patents that combined all of these elements back in 2014, so by nature, the LOCI Score is fairly high and demonstrates a significant level of novelty.

Figure 1: Invention Analysis results for the original (2014) Ethereum whitepaper, complete with lOCI Score demonstrating novelty and Top Related Documents (patents), among other data points inventors can use to improve their inventions.

 

In the next set of results from Invention Analysis, Top Related Documentsas seen above in Figure 1, we get a good glimpse inside what the surrounding IP landscape looks like. Some of the topics of the most highly related patents include the following: generating passwords, buying and selling commodities, currency, commercial self-service payment schemes, and peer-to-peer networks. Based on these results, we were not surprised that all of these documents came up because they are all there right in the abstracts – everything that one would expect the Ethereum network to consist of. However, one observation that was a bit concerning was that abandoned patents dominated the top five related documents for the ETH whitepaper, which implies that others had similar ideas, but gave up on their attempts to patent them for unknown reasons.

Moving past the Top Related Documents, we have the Keywords section. This section includes the two clouds of related words, one blue and the other red. The blue keywords include topics and terms that were most prevalent in the invention submitted by the user. And in the case of the Ethereum whitepaper as indicated in Figure 1 above, we see terms like currency, bitcoin, blockchain, transaction, and decentralized. These blue keywords serve as a frame of reference for the author of the patent or IA. The second set of keywords in red illustrates terms not found in the invention that was submitted, but rather terms found throughout the other relevant documents and patents against which the original was compared. Upon observation of this second set of terms, users might have an understanding of how the missing keywords got there; back in 2014 when the ETH whitepaper was published, the patents in the related CPCs were computer-based and focused more on digital transmission rather than more cryptographic terms.  

Finally, after users have been given a novelty score, related patents, and even keyword clouds, they are presented with the most relevant Patent Classification Codes to their invention. This helps inventors see where their idea fits, and makes room for inventors to consider alternate uses and classifications for their inventions. In Figure 2 below, it is evident that the majority of the related CPCs come from similar subclasses as indicated by the prefixes: H04L: Transmission of Digital Information and G06Q: Data processing systems or methods, specially adapted for administrative, commercial, financial, managerial, supervisory or forecasting purposes; systems or methods specially adapted for administrative, commercial, financial, managerial, supervisory or forecasting purposes, etc. The fact that these CPCs make up the majority of the list for the Ethereum whitepaper (23 out of the 24 CPCs listed), really showcases that Ethereum and blockchain had (in 2014) and still have the ability to permeate endless areas of technology and operations that impact human life on a daily basis.

Figure 2: Keywords and Classification Codes are also presented in the Invention Analysis results.

 

Analysis could have had on the popularity of Ethereum. Imagine if the founders would have had this deep a level of analysis and could have been presented with so many of the future applications of their technology, and to see that it could be applied to so many technologies that influence every part of our daily lives. Perhaps it’s too late for LOCI to make that impact for Ethereum, but it is not too late for anyone now with the next big idea. Could that next innovator be you?

More about LOCI Invention Analysis:

LOCI Invention Analysis helps new inventors determine the novelty and demand for their ideas before they spend money trying to patent. This is a huge cost savings of about 95% compared to traditional patent attorney searches. LOCI Invention Analysis can also help guide inventors toward “white space” where there are relatively few existing patents, where demand is high, so the inventor has the best possible chance of being awarded a patent, and/or selling their idea. Inventors can submit multiple iterations to help refine their idea and identify alternative applications of their invention. The ultimate goal of the inventor while using Invention Analysis is to achieve an optimal “LOCI Score” which indicates that their idea is unique, and in high demand.

More about LOCI

LOCI’s mission is to disrupt the global patent industry, and to change the way the world invents and values ideas. We specialize in simplifying the patent search process by utilizing unique visualizations and providing comprehensive analysis to help determine the novelty and demand of an idea. To further understand the landscape of IP and learn more about LOCI, visit: https://loci.io


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