PayPal Patenting a System for Quicker Cryptocurrency Transaction!

PayPal, a world online and mobile payment firm is working on how to make payments of cryptocurrency faster. The company has sought a new patent that mainly depends on transferring private keys – those are codes that consist numbers and letters and used in cryptocurrency transactions. The new patent application is carried out by the US Patent and Trademark Office!

The patent application (Expedited Virtual Currency Transaction System) is dated March 1st and was first spotted on Coindesk, blockchain news. Bitcoin transactions normally take several minutes or even hours to process, and PayPal is currently addressing this issue!

According to the company, the suggested method of cryptocurrency payment will practically eliminate the period payees wait to confirm they have received the virtual currency payment after the transaction. This is done by transferring the private keys (included in virtual currency wallets) to the payee and linking them with predefined quantities of virtual currency which is equal to the payment amount which is identified with the virtual currency transaction!

The San Jose, California-based PayPal was established in 1998 and 2014; it established partnerships with processors of bitcoin payments to permit digital goods merchants to approve payments via the PayPal Payments Hub. Hence, the reason PayPal is eyeing this mechanism to quicken the speed of cryptocurrency payments!

By narrowing the amount of time the payment takes between consumer and merchant, the new mechanism eradicates the process of sending transactions and waiting for them to get incorporated into next blocks on the network. PayPal has done this by creating secondary wallets using special private keys! Usually, due to safety purposes, the usual transaction takes longer. The new development has not been surprising since PayPal co-founder Peter Thiel has also heavily invested in bitcoin using funds of the firm's owner that he launched!

The investors of the new patent (Expedited Virtual Currency Transaction System) are PayPal Inc., Cheng Tian of San Jose and Sandy Lynn Godsey of California. At the ending of February this year, John Rainey, the PayPal Chief Financial Officer mentioned the likelihood of Bitcoin (BTC) becoming the popular method of payment. The methods and systems of present disclosure practically reduce the number of time payees confirm receiving their payments!

PayPal has been anticipating for some bitcoin frictions to get overcome before using it as an effective system. That is featured in the patent filed by the company in August 2016. Similar to bitcoin's Lightning Network, PayPal is laying a system of accelerating enabling the exchange of fiat-money and cryptocurrencies. The secondary wallets created by PayPal are used temporarily and pre-funded for transactions. Instead of on-chain transfers, users can just transfer funds using appropriate secondary wallet!

The systems will permit instant off-chain payments where the details will be transmitted later along the primary blockchain in a system similar to bitcoin's Lightning Network – which entails a sequence of pre-funded multi-key wallets!

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