PayPal Patented a Crypto Speed Boost
PayPal a U.S based company has filed a patent with the U.S. Patent and Trademark Office, on March 1 this was issued, to enhance the speed of cryptocurrency payments. The patent report an “Expedited Virtual Currency Transaction System”, involving the use of secondary private keys to shorten wait times for transactions between consumers and merchants. So that transaction becomes easy for both.
Paypal Inc. is growing a new system of rules that will make crypto transactions faster. This is a great news for Bitcoin and other virtual currencies. Published last week, the patent details a new system that would transfer private keys outside of the blockchain to speed up the transactions. Such solutions have been dropped by the likes of Microsoft as a solution to speeding up cryptocurrencies.
What Does This Mean for PayPal?
The company wants to increase or enhance the experience and better compete against credit card payments. Right now, users are experiencing a delay in the transaction between the start of the transaction and when it gets completed, with about a 10-minute waiting period being common.
In a condition like, a 10-minute of transaction waiting time will be long for some payers than they will choose to do the transaction using by normal traditional payment methods rather than digital currency,” PayPal said in the filing. “Issues like this have slowed the use of digital currencies despite their advantages. That mean, there is a need for an action on virtual currency transaction process.”
Those private keys will be transferred outside of the blockchain by PayPal’s system, to some other secondary wallet with keys tied to limited amounts of digital currency.
The Patent Description Explains:
The methods and systems of the present report practically abolish the amount of time the payee must wait to be sure they will receive a digital currency payment in a digital currency transaction by transferring to the payee private keys that are included in digital currency wallets that are related with limited amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.
Waiting a long time for payments has been one of the biggest disappointment levels at Bitcoin. It’s what led Stripe to end support for payments made in Bitcoin earlier this year, with the company saying the virtual currency had “evolved to become better-suited to being an asset than being a means of exchange.”
The “Lightning Network,” is another way that makes off-chain transfers through channels, and is an attempt to sell by its developers as having the potential to offer “billions” of transactions per second. The protocol is presently being rolled-out. If both services see high levels of adoption, Bitcoin has a much better chance of mainstream adoption.
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