According to a recently-released patent filing, Paypal, the online payment giant, is seeking for ways to improve the speed at which cryptocurrency payments are made. This came in the wake of an application for an “Expedited Virtual Currency Transaction System” that the U.S. Patent and Trademark Office published on March 1st. This system explains a way in which private keys are being used behind the scenes by being swamped from the buyer to the seller.
A Solution to Slow Paypal Payments
Paypal payments have hitherto taken quite a while to go through between a consumer and a merchant and this concept is expected to reduce this time significantly. This will mean that there will be no waiting time for a transaction to be included in the network’s next block.
With regards to this development therefore, Paypal have made their proposal on how to go about the process by creating secondary wallets complete with their own private keys; unique for both sellers and buyers. As such, the system will only transfer private keys that correspond to a specific amount of a particular cryptocurrency.
Private Keys Will Work Their Magic
Based on the methods and systems of the current disclosure, it is possible to eliminate the amount of time taken by the payee before they are assured of receiving their funds in the case of a virtual funds transaction. This is done by transferring private keys included in the virtual currency wallets to the payees. These private keys must be associated with predefined amounts that equal the amount already identified in the online funds transaction.
This is indeed a step in the right direction, considering how Paypal has been instrumental in helping streamline virtual payments in cryptocurrency. It is a journey that started in 2014 when Paypal saw the need to make partnerships with various Bitcoin payment processors. This made it possible for merchants to accept and deal with cryptocurrency through Paypal’s Payment Hub.
What’s more, the process has been made even less complicated considering that Peter Thiel, the Paypal co-founder is a cryptocurrency enthusiast and is known to have made huge investments in Bitcoin through his co-founded VC firm, Founders Fund.
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What do you think about Paypal’s move to improve the speed of crypto payments tech? How will this affect current transactions? Let us know your thoughts in the comments section below.