Blockchain companies may be eligible for R&D tax credits for performing qualified research activities. For example, the following activities may be eligible for R&D tax credits:
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Performing technical research to analyze, asses and respond to potential block chain threats
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Developing new and/or improved platforms or applications providing new and/or improved features, functionality, performance, reliability, or quality
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Developing new and/or improved smart contracts (computerized transaction protocol) to automate digital contracts and facilitate, verify, or execute the performance of a contract
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Developing new and/or improved algorithms to manage user privacy and consensus in private or public blockchain networks
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Designing new and/or improved collection, security, efficiency processing, and analysis of large data sets during distribution
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Designing blockchain applications to adhere to new and/or evolving government regulations
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Evaluating and testing new and/or improved security applications built on blockchain to ensure data privacy and security protection
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Designing new and/or improved scalable back-end solutions
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Designing and deploying new and/or improved block chain secure design patterns and solutions
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Designing or integrating new and/or improved scalable and efficient applications to manage specific processing nodes in a public or sectorwide blockchain
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Testing new and/or improved security assessments and control matrix review protocols
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Test and auditing new and/or improved smart contract development protocols
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Evaluating network attacks and systemic security issues to enhance threat and vulnerability protections
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Penetration testing, security logging, forensics, in direct support of research and development activities to enhance and/or improve the platform