Patents for Pokemon Go have led some people to begin to speculate on how the trading may work in the mobile app, and they have laid out a description on how to trade the Pokemon with other players by using a new trading function in the app.
Patent Yogi says that Pokemon Go has filed for patents regarding its own virtual transportation system working underneath the GUI that players interact with. They explain in the article that as players travel around and attempt to capture Pokemon, there is also a way for Pokemon to move around the virtual world that may reveal how trading will work in Pokemon Go.
According to the article, the virtual transportation system is based on real-world transportation schedules made available online, and Niantic has Pokemon Go reading that data and adjusting the locations of Pokemon accordingly.
They theorize that based on the patents this same system is likely how trading will work in Pokemon Go, as players will be able to transport Pokemon from their own library to the library of another user, or vice versa. They opted to demonstrate how this works in a mock-up video they did where they showcase a visualization of this sub-layer of the game's transport infrastructure. You can check out the video below.
So essentially, based on the patents, Patent Yogi posits that the player will select a Pokemon from their line-up, choose which Pokemon they would like to trade it for, and then have their Pokemon transported to the other player while the Pokemon they desire would be transported to them.
We have no idea if Niantic Labs will fully utilize this system as part of the network makeup of Pokemon Go or if they will go with a slightly alternate system for the actual trading.
Now keep in mind that just because a patent reveals a method or way in which gamers can interact with a thing doesn't necessitate that that's exactly how it's going to be. Remember that the original Nintendo Switch patents showed that the detachable controllers used infrared designs and the buttons were hollowed out from electronic components, but apparently that's not exactly how the controllers work at all.
Patents will give you a good indicator of the general functionality of a device, but sometimes (especially when it comes to anything related to Nintendo) expect the actual execution of that design to be vastly different from what appears in the patent. Just like the Nintendo Switch's screen design and usage is also vastly different from what appeared in the patents. So in keeping with that tradition, expect the trading in Pokemon Go to have Niantic's own flair.
The developers mentioned that the trading was coming down the pipeline, so expect to see the trading take shape at some point in the near future but with some obvious caveats, sort of like Pokemon Go finally launching on the Apple Watch but without the ability to actually capture Pokemon.