The payment giant, PayPal has filed an application for a patent on technology through which faster crypto payment could be made. This big step came after company’s baby step towards bitcoin adoption in 2014 when it came into a partnership with Coinbase, BitPay, and GoCoin.
PayPal speed crypto payment with “Expedited Virtual Currency Transaction System”
A global online payment system, PayPal has filed for a patent to improve the speed of crypto payment. On March 1, the application was published by US Patent and Trademark Office that goes with “Expedited Virtual Currency Transaction System”. In the application, a method has been detailed where private keys are swapped from a buyer to a seller in the background.
The objective here is to lessen the amount of time taken in a payment to go from a customer to the merchant while avoiding the time-consuming process of sending a particular transaction and then waiting for it to be added to the next block on the network.
As per the application, “the present disclosure include systems and methods for providing expedited virtual currency transactions through the use of private keys”. Hence, to eliminate the mining confirmation, PayPal has proposed a way where secondary wallets will be created that will have their own private keys for both buyers and sellers. These private keys would be transferred by the system corresponding to the amount of a particular cryptocurrency.
“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.“
A big step after Braintree and BitPay & Coinbase partnership
It’s not the first time that PayPal has got involved with the cryptocurrency market. In 2014, PayPal has announced several of its partnerships with the bitcoin payment processors such as Coinbase, BitPay, and GoCoin, that basically allows the merchants to accept paypal to BTC payments for digital goods via the payment hub of the company. Moreover, its co-founder, Peter Thiel has invested a good deal of money in bitcoin through his another co-founded VC firm, Founders Fund.
The payment giant also made a step towards the crypto adoption through its Braintree unit for making paypal bitcoin transaction process easier. It is a mobile payment provider that allows the merchants to accept bitcoins.
PayPal has a huge adoption what with being available in 26 currencies and about 193 markets worldwide. Having more than 140 million active registered accounts, PayPal has the potential to bring the bitcoin market closer to the new users and business while propelling the growth and real-life integration of cryptocurrency market.
What are your views on PayPal working towards boosting the cryptocurrency payment speed? How do you think it will affect the cryptocurrency market? Let us know below!
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.