Minds + Machines patent app for using domain names as currency: Interesting

Patent application describes a novel way to use domain names as a currency.

So far, we’ve seen some innovation in how fresh top level domain names are distributed and sold, but not much innovation in how they’re actually used.

Minds + Machines has an idea that certainly seems innovative: using domain names as a currency.

The firm filed a patent application on the idea last year, and it was just published by the U.S. Patent and Trademark office this morning. (Read the full application embedded below.)

The idea is that you can buy a domain name from your registrar that has a certain stored value facilitated by the registry. For example, I could go to GoDaddy and request a $500 stored value domain name. The registrar would then issue a domain name, such as USD500-781211.work, which corresponds to that $500.

If someone typed the domain name into their browser, they could verify its value (see image).

You could transfer the value to another person by transferring the domain name much like you transfer one today. You could also redeem it from the central registry, perhaps through your domain name registrar. There could also be a way to “make change” on a transaction by issuing another domain name for the difference.

The patent application notes that the system will work best if there’s some sort of trusted guarantor (such as a government).

The application points out a number of advantages of DNS over other eCurrencies, counting the ability to verify ownership, see the value directly in the domain name, and the ability to lock domain names from transfer.

Just be sure your registrar offers two-factor authentication…

Domains as Currency Patent App