TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FWB: 9SQ) (OTCQB: OTC: TAALF) (“TAAL” or the “Company“) announces that its operating subsidiary has filed a second patent application (the “Patent Application“) with the United Kingdom patent office with respect to its newly acquired Layer 1 token blockchain technology for the BSV (Bitcoin SV) network.
Layer 1 tokens are validated by computers operating on the blockchain directly, unlike more common Layer 2 token systems which require separate Layer 2 protocol servers. Processing transactions directly on the network is synergistic with TAAL’s vision and roadmap for its core business of blockchain transaction processing as it allows different ways of creating more transactions and thus facilitates an expansion of the fee market available to TAAL. The fee market is an important pillar of TAAL’s revenue strategy.
Bitcoin SV has proven scalability in both transaction volume/capacity and block size that has been demonstrated on the BSV stress test network (1 gigabyte sustained) and BSV main network (360 megabyte peak) that is unequaled by any other blockchain technology. Jerry Chan, TAAL’s CEO, said “We are proud to be involved in delivering this ground-breaking initiative to market and look forward to working with our enterprise clients and development partners to expand the ecosystem for smart contract technology on the Bitcoin SV platform.”
Layer 1 tokens, to this point, has been primarily the domain of Ethereum, whose ecosystem of Layer 1 tokens is currently recognised as the largest in the blockchain industry, and this technology opens the door for the migration of legitimate tokens that require enterprise level scaling to the Bitcoin SV network.
In April 2020, TAAL entered into a US$1m licensing deal with nChain Group Holdings Limited (“nChain”) to secure access to critical IP to support its development of transaction processing capabilities. This patent builds on top of nChain’s extensive intellectual property portfolio and creates an array of opportunities for innovative and disruptive solutions which are at the heart of the blockchain technology delivered by Satoshi Nakamoto when he published his Bitcoin white paper in 2008.
The Patent Application will underpin the launch of associated technologies and platforms and reinforces Bitcoin SV’s position as the leader for enterprise use cases.
In consideration of acquiring the intellectual property underlying the Patent Application, TAAL’s operating subsidiary has entered into a royalty agreement with the inventor.