In news released over the weekend, it appears that PayPal is looking for ways to boost cryptocurrency transaction times.
PayPal published an application for an "Expedited Virtual Currency Transaction System" late last week.
According to the application, a method is being developed where private keys are swapped from a buyer to a seller behind the scenes.
That sounds completely different than how things are done currently.
How would it work?
Details are still a bit fuzzy, but some snip-its from the release can help us get a slightly clearer picture of what they are trying to do.
Specifically this was mentioned in the application:
"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."
(Source: https://www.coindesk.com/paypal-eyes-instant-crypto-payments-tech/)
Judging from this, it certainly sounds like an entirely different way of transaction using virtual currencies is being proposed!
Overall, the goal of the new technology is to greatly reduce the amount of time it takes for digital payments to be processed.
Currently for every transaction that is sent, it must wait to be included in the next block of the network to be fully processed and confirmed.
PayPal is proposing a way to create secondary wallets that would have their own unique private keys.
The payment system would then transfer these private keys corresponding to the exact amount of any given cryptocurrency.
Interesting to say the least.
Whether something like this catches on remains to be seen, but it certainly could speed up transaction times.
More on the Patent can be found here:
Stay informed my friends.
Image Source:
https://www.jtvdigital.com/blog/how-to-generate-a-1-click-paypal-payment-link/
Follow me: @jrcornel
That sounds awesome! I just commented on another post, that what is urgently needed is a fool proof way for normal people to exchange their fiat for crypto with one click and asked, when someone will start to build a Steempal service - aaaaand there we have it (potentially) 😀
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I really don't care for PayPal. They need to do something to stay relevant in my opinion. This does however, look like good news for the crypto market. Thanks for the update!
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They will probably try and hire Elon Musk when every thing goes to shit or sell the company to him.
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FYI: Ummm ... Elon Musk was the co-founder of PayPal along with Peter Thiel. Pretty sure one or both of them are still on the board of directors. I'm sure they are tracking on this new development. If I had to guess this effort is probably supported by Thiel, he's the libertarian leader that championed PayPal, Facebook & other Tech companies out of the gate towards economic prosperity.
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Correct. His investments into the crypto space would align with a move like this from PayPal.
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Its actually going to be a great news for some of us in our couuntry trying to transact with people fom other country.
Paypal will actually boost a flexible transaction online for many people.
Things will get better
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It will facilitiate east transction between you and people in other countries esprcially when you are dealing on online transations
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@brettcalloway
https://cointelegraph.com/news/paypal-filed-a-patent-to-speed-up-crypto-payments-bitcoin-dev-argues-it-already-exists
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Interesting - I actually think this is huge if Paypal can get to it first and accurately. Paypal has really tried to shift itself into all forms of payment - e.g., remittances and money transfers - and a blockchain would really give them a cheaper, safer, faster and overall disruptive product. I may need to take another look at their stock.
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I have never been a fan of paypal. I was hoping crypto's would be the end to the likes of paypal but I suppose it will take more than ideas to bring these giants to their knees.
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Wow! Whatever your thoughts on PayPal (I don’t like them since they froze my assets a few years ago, taking months to get released, breaking my eBay business) this is amazing. The big players are starting to take notice. There is no way they will give up control and embrace the open source nature of crypto, so they will develop (and patent) their own!
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With the good initative it would actually going to be a great news for some of us in our xountry trying to transact with people fom other country.
Paypal will actually boost a flexible transaction online for many people.
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I read about this today also , I wonder if paypal is going to come out with a crypto coin or token if they do then that will be huge for the crypto sense.
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Blockchain is fully mainstream now...which kind of bums me out tbh...
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Everyone should keep in mind what exactly this is and is not. This is not a replacement for cryptocurrency transactions themselves, rather a move by PayPal to corner the point of sale payment processing for cryptos. Like if you go to a store and want to pay with cryptocurrency.
From what I can see it isn't exactly groundbreaking stuff. It requires PayPal to act as a trusted party in the transactions. Ironically they are trying to get their piece of the pie by doing what many cryptocurrencies are trying to disintermediate (kill the middle man like PayPal)
Let's pretend this had nothing to do with cryptocurrency for a minute and think of it like regular money. What they are proposing is a complicated version of a prepaid credit card. People will still need money to fund a prepaid card(secondary wallet), then that prepaid card is just given to the other person.
You still need to be verified by PayPal in some way. Either by putting your BTC or other cryptocurrencys into their system first. Or by some agreement to repay them if you don't hold the money within their system based on our unreliable system of credit scores.
What is concerning is that this patent is all basically possible through bitcoins own improvement protocols through use of escrow and multisig. For shits and giggles someone should offer a prize to a high school kid to build a dapp with Ethereum that makes this look like child's play. They have just patented a glorified and highly unoriginal smart contract.
Before they have a chance to push out a wallet, Lightening, Truebit, and ZCash's Sapling update will likely make the whole concept want to crawl in a hole to contemplate a new scheme for getting a piece of the action they fear losing.
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They fees will be through the roof, would not be worth the trasaction.
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You mean they aren't doing it out of the kindness in their hearts?
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There is apparently a working hardware solution I didn't know about that does the same thing. That's an even bigger problem, the original patent needs to be less broad.
https://cointelegraph.com/news/paypal-filed-a-patent-to-speed-up-crypto-payments-bitcoin-dev-argues-it-already-exists
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wow this is great, I am glad that there are changes happening when it comes to paypal transaction, the virtual currency is getting popular. Imo this is really great news! :D greatly appreciate this update @jrcornel
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I don't really understand what paypal maybe Doing but i geuss we have to wait and see what thy are up to .
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WOW! PayPal support for crypto? Interesting article.....
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thanks for the information, lots of new benefits and knowledge that you provide. I can tell that there is a new app published this week, I am very happy to follow you a lot of knowledge that I can get
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I think that will be a great movement.
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Thanks for sharing good stuff
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Its actually going to be a great news for some of us in our xountry trying to transact with people fom other country.
Paypal will actually boost a flexible transaction online for many people.
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great news good job.
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It sounds like the lightning network.
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Well that's innovative..I must accept...
If executed properly it will greatly reduce payment time, but after full scale development anything more can be said with surety.
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paypal will make shopping payment so easy
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i think paypal can be good news for crypto to the future , everyone need payment because paypal is already know by many people in the world of payment
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I think this could be great for the people who don't have credit cards but want to shop online.
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If you can't beat them, join them
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thats a big leap for the crypto community
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Sounds great. I still need to read more to understand this method better. The proposal sounds attractive, lets wait and see how it goes. But this will really make the demand of cryptocurrency jump up so as the value will increase.
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It's great to hear that now virtual currency transactions are being held
through Paypal. let'see does it really works or not. Paypal transaction is best and more ease than others i think
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This sounds interesting but I'm skeptical . This does not seem like an elegant solution to private key management - centralizing or using escrow type model to do transactions 'behind the scenes' kills the decentralization principle IMHO. I'm already dead against the patent system and this sounds fishy to me.
Thanks for info and update!
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Genial. Con esto serán más expéditas las transacciones financiera.
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I remember years ago when paypal threatened to close my account if I used it for anything pertaining to Bitcoin. My, my, how times have changed.
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The big question is which currencies is Paypal planning on supporting or partnering with. That will be a pretty big deal I'm thinking and could provide a nice little boost to whatever coin / coins are involved.
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It was a matter of time that PayPal would want to involved in the crypto space. It is unfortunate that they are going the centralized route by filing a patent vs open source or partnering with existing projects. Not sure how many people will want to trust a centralized company subject to their shareholders and their best interests. However, the news demonstrates how the concept is going mainstream and adoption will increase soon as more projects are launched.
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Advertise on https://cryptopiece.com/
I aim to advertise all the players in crypto industry under one roof, with a gorgeous grid based retro landing pad. Providing links to all that the crypto industry has to offer and to promote and showcase the community.
Kind regards,
Cryptopiece
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I still need to read more to understand this method better. The proposal sounds attractive, lets wait and see how it goes. But this will really make the demand of cryptocurrency jump up so as the value will increase
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@jrcornel - Appreciate your info about PayPal's effort to add a virtual payment system/interface to their companies' offerings. It will be interesting to see what this really looks like once it is deployed (or if it is really deployed). PayPal could be just applying for a patent for another reason- to protect a development that they are planning on employing. I have no inside knowledge, just speculating on my business background and experience. Great post- keep up the outstanding work.
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I am not a fan of PayPal. It seems like they constantly charge you random hidden fees so I would probably avoid anything that they started even if it involved the world of cryptocurrencies.
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Thanks for the information, very useful, great post @jrcornel
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Interesting to hear Paypal is working on this. Curious whether this will turn out to be an effective method though..
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I want to just get away from PayPal and have another Crypto to pay for stuff and receive payments thru eBay etc..... My two cents
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Big boys playing should cause prices to jump
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Hm... I wonder if this is good or bad. PayPal already has too much power, and they are more or less the only option when it comes to receiving money online - at least for people living in countries where you can't easily get a business bank account you can use online.
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i see a big problem with this.
example:
you have 1 btc in your wallet and want to buy something that cost 0.5 btc where do the change go ?
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Yess people are still thinks tons of time when the name PayPal comes ,because many of them gone through the freezing of funds situation.
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The initiative to work on transaction time is great but patenting it, not so much
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Completly stupid, when i send with dgb it gets verified in few seconds - one minute. Paypal is old and dead, nice try :)
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very important post....
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With all this technological involvement, I expect a big rise in patents and patent offices.
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good script ..
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This is great info. Thanks for your hard work! A lot of creativity and teamwork will make Steemit greater in 2018 an on. Go Steemers! Go!
Joy
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I wonder if pay pal would try to create their own coin? Do you see that happening, if they can speed up transactions?
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thank you @liondani upvoted (100 %) lacher-prise (20180212t111653210z-post)
https://busy.org/@lacher-prise/20180212t111653210z-post
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