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Uniswap wins CPAMM patent lawsuit against Bancor

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Uniswap wins CPAMM patent lawsuit against Bancor

Uniswap has won a patent infringement lawsuit filed by organizations connected to Bancor, marking a major legal victory for the decentralized exchange and the wider decentralized finance sector.

Summary

  • Uniswap won a patent infringement lawsuit filed by Bancor-linked entities in a U.S. federal court.
  • The case focused on the constant product market maker formula used in decentralized trading.
  • The ruling supports open-source development and limits patent claims over core DeFi tools.

On Feb. 11, Uniswap founder Hayden Adams said on X that his legal team had informed him of the court’s decision in Uniswap’s favor. The case had challenged the technology that powers automated token trading on the platform.

Many people in the crypto world paid close attention to the lawsuit because it brought up a bigger issue. It questioned whether simple trading formulas used in DeFi can actually be protected by patents.

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Lawsuit focused on AMM technology

The legal fight started in May 2025. Bprotocol Foundation and LocalCoin Ltd., both connected to Bancor, filed a lawsuit in a federal court in New York. They claimed that Uniswap Labs and the Uniswap Foundation used a trading method that was covered by a patent granted back in 2017.

The patent covered the constant product automated market maker model, commonly known for the formula x*y=k. This system is used to price tokens in liquidity pools and has become a foundation of many decentralized exchanges.

Bancor argued that Uniswap (UNI) had relied on this patented method since launching in 2018 without permission. The plaintiffs sought financial damages for several years of alleged unauthorized use.

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Uniswap strongly rejected the claims from the start. The company said its code had always been open-source and publicly available. It also argued that the patent attempted to claim ownership over basic mathematical principles applied to blockchain systems.

Several industry groups supported Uniswap’s position. Organizations such as the DeFi Education Fund and the Solana Institute filed statements backing the exchange and warning against using patents to restrict open innovation.

Impact on DeFi and open-source development

According to people familiar with the case, the court found that the allegations did not meet the legal standard required for patent infringement, especially given the open nature of Uniswap’s software.

Legal experts say the ruling sends a strong message to the market. Core financial mechanisms that rely on simple formulas may be difficult to protect through patents when they are openly shared and widely adopted.

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Many developers see this outcome as a strong moment for open finance. It sends a message that the basic tools behind DeFi cannot easily be restricted or put behind paywalls through patents.

Uniswap users and its partners can also breathe a little easier. The uncertainty surrounding the case had raised concerns about possible setbacks. If the court had ruled differently, it might have slowed down new features and partnerships across the wider ecosystem.

So far, there has been no word of an appeal. For now, the matter seems to be settled at the district court stage.

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Crypto World

Naoris Launches Post-Quantum Blockchain as Quantum Risks Grow

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Naoris Launches Post-Quantum Blockchain as Quantum Risks Grow

Naoris Protocol has launched its mainnet, introducing a layer-1 blockchain designed to use post-quantum cryptography for transaction validation and network security. The network is live with limited, invite-only participation, allowing early users to run validator nodes and process transactions.

According to an announcement shared with Cointelegraph, it integrates cryptographic standards finalized by the National Institute of Standards and Technology (NIST) to address risks in existing blockchains, where current encryption methods could become vulnerable over time.

Before mainnet, the protocol’s test network processed more than 100 million transactions and identified hundreds of millions of potential threats, according to the project, with activity spanning millions of wallets and nodes.

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The system uses a consensus model called distributed proof of security (dPoSec) to verify transactions across nodes, while the NAORIS token is intended to support network operations as the economic model develops.

The rollout begins with a restricted group of validators and partners, with broader access expected to expand in phases.

The project lists advisers with backgrounds in cybersecurity, government and enterprise technology, and is backed by investors including Draper Associates.

Related: Is $450B in Bitcoin vulnerable to the quantum threat? Analysts weigh in

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New research suggests quantum computing may arrive sooner than expected

The launch comes as revised estimates for quantum computing, which uses qubits and quantum states to process information differently from classical computers, are driving efforts to move away from current cryptographic standards.

New research from Google released on Monday suggests quantum computers may need far fewer resources than previously thought to break blockchain encryption. The study found fewer than 500,000 physical qubits could crack systems securing Bitcoin (BTC) and Ether (ETH), a roughly 20-fold reduction from earlier estimates.

The findings point to a shorter timeline for quantum risk, with Justin Drake, a researcher at the Ethereum Foundation, estimating at least a 10% chance that a quantum computer could recover a private key by 2032.

Breakdown of Bitcoin supply by address type and quantum exposure risk. Source: Google Quantum AI

Researchers at California Institute of Technology working with Oratomic reached similar conclusions, recently finding that improvements in error correction (which reduce the number of qubits needed to stabilize computations) could lower the requirements for practical systems to 10,000 to 20,000 qubits, down from earlier assumptions of millions.

Based on these reductions, the researchers said a viable quantum computer could emerge by around 2030.

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Blockchain developers are beginning to respond. In January, developers in the Solana ecosystem introduced a quantum-resistant vault that uses hash-based signatures to generate new keys for each transaction, reducing the exposure of public keys.

On March 24, developers from the Ethereum Foundation launched a “Post-Quantum Ethereum” resource hub outlining plans to upgrade the network’s cryptography, targeting protocol-level changes by 2029 while also noting the multi-year complexity of such a transition.

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