Medici Ventures has invested in 19 blockchain companies and seeks to harness the “world-changing” power of this technology. One of these companies, tZERO (t0), focuses specifically on security tokens, and has recently filed an application relating to methods of security transactions. This application covers ways to prevent fraud in securities sales, such as a method to prevent naked short selling. With the blockchain, it is possible to record the borrowing of shares, which would render it impossible to sell shares that you do not own. The advantage this technology would have over traditional sales is huge, and if the patent is allowed and issued by the USPTO, could have far reaching consequences.
