PayPal Files Patent to Improve Cryptocurrency Transaction Times

PayPal has filed a patent for a system designed to enhance the speed of cryptocurrency payments.

Documents filed with the united states Patent and Trademark office (USPTO) on March 1 display that the payment processing giant has developed a system through which senders and receivers can switch personal keys instead of sending coins over the network via conventional method.

At present, Bitcoin blocks are mined about each 10 minutes, meaning that customers must wait at the least that long for his or her transactions to be “showed” by using the community.

From the filing:

“in lots of transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will alternatively choose to carry out the transaction the use of traditional charge methods instead of digital foreign money. problems like this have slowed the adoption of digital currencies in spite of their benefits.”

whilst many cryptocurrencies have sought to cope with this subject via shortening block instances, users are still situation to better prices and slower affirmation instances when the networks end up congested.

underneath PayPal’s suggestion, the device would mechanically create more than one secondary wallets for its users — wallets whose private keys will be aggregated and transferred to in shape any favoured fee amount. This, the patent argues, would “almost eliminate” confirmation times.

The documents state:

“The structures and methods of the existing disclosure nearly take away the quantity of time the payee ought to wait to be sure they will acquire a digital foreign money payment in a digital currency transaction by transferring to the payee non-public keys which can be protected in digital foreign money wallets which can be related to predefined amounts of digital currency that equal a charge amount diagnosed within the digital currency transaction.”

That PayPal is expending resources growing systems for cryptocurrency-based totally transactions is wonderful, as it suggests that the firm — once a disruptive fintech startup — is now perhaps feeling the forces of disruption itself.

however, PayPal customers should no longer expect that they will be able to create PayPal-branded Bitcoin wallets each time quickly. Many hooked up groups — which include Bitcoin-skeptical institutions like financial institution of the USA — were submitting cryptocurrency-associated patents for years but have yet to expand them into actual merchandise.

Source, CNN

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