PayPal Files Patent on System to Increase Crypto Transaction Speeds
On March 1st, the U.S.-based payment service PayPal filed a patent with the U.S. Patent and Trademark Office to increase the speed at which many cryptocurrency payments are confirmed and verified. The patent is entitled “Expedited Virtual Currency Transaction System”, which involves the creation and use of a secondary set of private keys and wallets to shorten wait times involved between customers and merchants.
The authors of the patent are Cheng Tian and Sandy Lynn Godsey from San Jose, California. They work for PayPal Inc. and the addition of this patent is helping push PayPal further in between the traditional and blockchain financial markets. According to the patent, the company is attempting to solve the transaction time problem many people have while transacting over a busy blockchain like the one that runs the bitcoin network.
Ideally, the addition of this new system will help keep traders invested in the cryptocurrency space without leaving out of frustration with slow speeds and returning to traditional means of transferring value.
“instead choose to perform the transaction using traditional payment methods rather than virtual currency. Issues like this have slowed the adoption of virtual currencies despite their advantages” the patent states.”
The patent goes on to detail how by creating a set of secondary wallets with their own respective private keys that are linked mathematically to the first user wallet, the system can allocate predetermined amounts to the secondary wallets. This allows them to be selected and transferred without the extra calculations involved in taking out the exact amount from the master wallet.
“practically eliminating the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction.”
The addition of a PayPal based crypto payment system will help further the adoption of cryptocurrency since it gives users of PayPal an easily accessible avenue to enter into the rapidly expanding world of cryptocurrency
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