Mastercard Awarded Faster Cryptocurrency Payment Processing Patent
Mastercard Victorious In Winning Patent For Speeding Up Crypto Payments
Mastercard has won a United States patent to develop a “method and system for linkage of blockchain-based assets to fiat currency accounts” which essentially speeds up cryptocurrency payments. Published by US Patent and Trademark Office (USPTO) on July 17th, 2018, the document explains that in as cryptos have seen an increase in usage over the conventional fiat currencies by consumers who prefer secrecy and safety.
In many ways, the wide disproportion in payment dispensation times between the two classes of assets puts cryptos at a disadvantage. According to the patent, there is the necessity to augment on the storage and processing of transactions that make use of blockchain currencies.
Furthermore, the patent explains that it takes a substantial amount of time, approximately 10 minutes, for a blockchain-based transaction to be processed. On the contrary, conventional fiat payment transactions which are processed while utilizing payment networks in most cases have processing times measured in nanoseconds.
Consequently, several entities, in particular retailers, merchants, service providers, as well as other transmitters of goods and services may be apprehensive when embracing blockchain currency for products as well as taking part in blockchain transactions.
Transacting in cryptos
In order to lessen the period of time that a transaction takes, Mastercard is offering an innovative type of user account which is capable of transacting in cryptos, though it will be pegged to a fiat currency. This account will connect sequences of profiles capable of identifying a user’s fiat currency amount, a blockchain amount, an account identifier as well as an address.
It is also worth noting that the transactions would make use of the fiat currency’s payment rails as well as safety features. However, every transaction would represent a cryptocurrency. By and large, Mastercard makes an addition to this by processing transactions made with cryptocurrencies in such a way that it will be able to detect fraud as well as asset risks. Available risk algorithms and information accessible to payment networks will be used to ensure seamless risk free transactions.
Other Mastercard Patent News: