PayPal’s Cryptocurrency Payment Patent For Faster Transactions
A recent patent filing by PayPal means that the company could be considering an expansion of its exposure o the cryptocurrency market with new and faster transactions. However, we shouldn’t expect something like a PayPal Lightning network or anything like that this year.
At the moment, there is a global race for companies to file patents for anything related to the blockchain or cryptocurrencies, so PayPal could be working on its portfolio for future battles with other providers.
PayPal’s Expedited Cryptocurrency Transaction System
The online payment provider PayPal has filed a patent for what it calls an expedited virtual currency transaction system through the US Trademark Office. It was reported earlier that the company filed an application related to cryptocurrencies back in 2016 for a modular payment module that would accept Litecoin and Dogecoin.
In the patent, PayPal describes the system as working with secondary wallets that will have a corresponding secondary private key, with transactions performed using the primary wallet private key to different transaction amounts to each of the secondary wallets.
Will This Mean Faster Transactions?
The patent explains the need for this additional system for cryptocurrencies due to the time delay period between the start of the transaction and when the transaction is confirmed. It outlines an example of waiting 10 minutes or more for a bitcoin transaction to be confirmed, which reportedly hurts the user’s experience and puts it at a disadvantage over methods like credit card payments.
“In many situations, people will need to wait 10 minutes or more for a transaction to be completed with Bitcoin. This is simply too long for payers and payees, which is why people are choosing traditional payment methods instead of cryptocurrencies. Problems like this have prevented the adoption of virtual currencies despite their privacy advantages,” stated Paypal.