PayPal files a Patent to provide Immediate Virtual Currency Transaction Processing
Mar 07, 2018 Posted / 8518 Views
Online payment giant Paypal on the first day of March 2018 filed a patent for “Expedited Virtual Currency Transaction System” with the U.S. Patent and Trademark Office (USPTO). PayPal says that it aims to enable almost immediate crypto payments and its proposed transaction system will suggest secondary private keys to shrink transaction times.
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PayPal intends to leverage its survival as an online business and with a positive image to infiltrate the crypto space. The patent application suggests a system where secondary wallets are designed with the help of individual private keys for payee and receiver. This payment system will then transfer these private keys between payee and receiver, which excludes the need for cryptocurrency payments to be contrived on their blockchains.
Fundamentally, PayPal would become a proprietary “second layer” payments network, depending on the first chain only and the users can choose to transfer their tokens to a different platform.
In this “off-blockchain” system, transactions would be processed straight between payee and receiver using the secondary wallet private keys. As a centralized system, the Expedited Virtual Currency Transaction System can encourage the speed of cryptocurrency payments.
The primary motive behind the concept is to narrow the transaction time between a consumer and a merchant. Currently, transactions ought to abide for incorporation in the next block on the open network. The patent application explained:
“The systems and methods of the present disclosure practically eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.”
Past few months have been hard for bitcoin enthusiasts as transactions times have increased and also higher transaction fees are charged which are not viable for smaller payment amounts. The time consumed to confirm payments and the increased cost was escalating, but SegWit support added to the addresses the general mood has been calm now, and the support has also helped in handling multiple transactions.
Bitcoin’s years-long scalability deliberation extended the scope for developers to recommend solutions. The most successful now is the Lightning Network that adds an extra layer for payments, while settling later on the main blockchain. PayPal has devised a similar kind of solution on its own to scale bitcoin transactions and cash in from the increasing crypto trend.
Presently, the company has not specified anything on how its proposed Expedited Virtual Currency Transaction System will chime in with the existing crypto ecosystem. So the question remains whether the users can send payments from PayPal to external addresses or only other PayPal users?
Paypal has employed a careful approach while supporting bitcoin and blockchain technology but has never allowed it on its platform. Nevertheless, in 2014, the company collaborated with bitcoin-related businesses like Bitpay, Coinbase, and GoCoin. The Primary Paypal co-founders Peter Thiel and Max Levchin earlier had also communicated some degrees of support for the cryptocurrency.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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