PayPal, one of the most important payment platforms on earth has developed a patent to improve transaction processing times. The patent was published on March the 1st 2018 by the US Patent and Trademark Office. The title of the document submitted is “Expedited Virtual Currency Transaction System.”
PayPal to Improve Cryptocurrencies
The main intention of this project is to reduce the processing time of payments between consumers and sellers. This would be very important for transactions that must be received instantly in some shops. The patent claims to eliminate the waiting tome for placing an order in the platform system. The system works by separating private keys from the buyer and the seller.
The patent submitted reads as follows:
“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 payment amount identified in the virtual currency transactions.”
With this patent PayPal is making cryptocurrency transactions more efficient by happening off-chain. The transactions will be directly between secondary wallets that will belong to the seller and the buyer, and they will have their own private keys.
At the moment, there is no clear date for the system to be launched or introduced to the public. The system proposed by PayPal is a remarkable development linked to the most important solution for the scalability problem of Bitcoin, the Lightning Network.
PayPal is a platform not so closed to cryptocurrencies. Indeed, it has invested several times in many different Bitcoin platforms and has partnered with various Bitcoin payment providers since 2014, including BitPay, GoCoin and Coinbase. Furthermore, PayPal’s founder, Peter Thiel, has heavily invested in Bitcoin as a way to store money.
Will PayPal create its own cryptocurrency such as BTC or ETH?