Can your company get extra funding for technological advances like blockchain and cryptocurrency in Canada?
The reason the Canadian Government supports research and development through tax incentive programs is due to their wide-reaching beneficial nature. Blockchain technology has created ripple effects with countless other real-world applications.
Cryptocurrency vs. Blockchain
So, what is the difference between cryptocurrency and blockchain? Well, it’s not actually a case of “this one or that”.
Cryptocurrency (such as Bitcoin) is a medium of exchange through a computer network that is not reliant on any central authority, such as a bank or government. Almost all cryptocurrencies are built upon blockchain technology.
What Is Blockchain Technology?
Blockchain technology is a digital ledger that records and tracks information. Its primary use is for transactional record-keeping, namely cryptocurrency.
There are three main benefits of a blockchain:
Blockchain runs on a peer-to-peer computer network, meaning it does not have a single centralized system. This helps protect the integrity of the system.
It is incredibly difficult to tamper with a blockchain. Strong security makes changes highly unlikely, and if they do occur, are extremely easy to identify.
Most blockchains are open-source, meaning transactions are easily traceable (while individual users remain anonymous). This also allows for quick and reactive upgrades to the security of the system.
Keeping The Ball Moving
Since its creation in 2008, many companies have begun utilizing blockchain and cryptocurrency technology, as well as expanding on it.
One of the main benefits of blockchains is its security. BurstIQ used this to create “Smart Contacts”, a way for patients and doctors to securely transfer sensitive medical information over the internet.
Using Blockchain, Propy Inc has created a global decentralized title registry system. Not only does this allow for instantaneous title issuing, but also allows for cryptocurrency to be used to buy property.
South of the border, West Virginia has become one of the first states to use Voatz new mobile voting platform. It runs on blockchain technology and provides an encrypted biometric security system that prevents hacking and data corruption.
As you can see, an advance in one sector created a domino effect, improving industries such as healthcare, cybersecurity, and more.
It doesn’t stop there either. Just because those companies didn’t invent the underlying technology, their advances in using blockchain for other purposes might still mean they qualify for SR&ED tax return incentives.
While SR&ED applications can be a daunting process, it is the largest corporate tax incentive program in Canada.
Making advances in blockchain technology or cryptocurrency in Canada? Not sure where to start when it comes to your SR&ED claim? We’re here to help.
Maxim Innovation is your SR&ED consultant, combining the skills necessary to make sure you’re not missing out on your piece of the pie.