PayPal Files Cryptocurreny Patent
In news released over the weekend, it appears that PayPal is looking for ways to boost cryptocurrency transaction times.
PayPal published an application for an "Expedited Virtual Currency Transaction System" late last week.
According to the application, a method is being developed where private keys are swapped from a buyer to a seller behind the scenes.
That sounds completely different than how things are done currently.
How would it work?
Details are still a bit fuzzy, but some snip-its from the release can help us get a slightly clearer picture of what they are trying to do.
Specifically this was mentioned in the application:
"The systems and methods of the present disclosure practically eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction."
(Source: https://www.coindesk.com/paypal-eyes-instant-crypto-payments-tech/)
Judging from this, it certainly sounds like an entirely different way of transaction using virtual currencies is being proposed!
Overall, the goal of the new technology is to greatly reduce the amount of time it takes for digital payments to be processed.
Currently for every transaction that is sent, it must wait to be included in the next block of the network to be fully processed and confirmed.
PayPal is proposing a way to create secondary wallets that would have their own unique private keys.
The payment system would then transfer these private keys corresponding to the exact amount of any given cryptocurrency.
Interesting to say the least.
Whether something like this catches on remains to be seen, but it certainly could speed up transaction times.
More on the Patent can be found here:
Stay informed my friends.
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That sounds awesome! I just commented on another post, that what is urgently needed is a fool proof way for normal people to exchange their fiat for crypto with one click and asked, when someone will start to build a Steempal service - aaaaand there we have it (potentially) 😀
I really don't care for PayPal. They need to do something to stay relevant in my opinion. This does however, look like good news for the crypto market. Thanks for the update!
They will probably try and hire Elon Musk when every thing goes to shit or sell the company to him.
FYI: Ummm ... Elon Musk was the co-founder of PayPal along with Peter Thiel. Pretty sure one or both of them are still on the board of directors. I'm sure they are tracking on this new development. If I had to guess this effort is probably supported by Thiel, he's the libertarian leader that championed PayPal, Facebook & other Tech companies out of the gate towards economic prosperity.
Correct. His investments into the crypto space would align with a move like this from PayPal.
Its actually going to be a great news for some of us in our couuntry trying to transact with people fom other country.
Paypal will actually boost a flexible transaction online for many people.
Things will get better
It will facilitiate east transction between you and people in other countries esprcially when you are dealing on online transations
@brettcalloway
https://cointelegraph.com/news/paypal-filed-a-patent-to-speed-up-crypto-payments-bitcoin-dev-argues-it-already-exists
Interesting - I actually think this is huge if Paypal can get to it first and accurately. Paypal has really tried to shift itself into all forms of payment - e.g., remittances and money transfers - and a blockchain would really give them a cheaper, safer, faster and overall disruptive product. I may need to take another look at their stock.
I have never been a fan of paypal. I was hoping crypto's would be the end to the likes of paypal but I suppose it will take more than ideas to bring these giants to their knees.
Wow! Whatever your thoughts on PayPal (I don’t like them since they froze my assets a few years ago, taking months to get released, breaking my eBay business) this is amazing. The big players are starting to take notice. There is no way they will give up control and embrace the open source nature of crypto, so they will develop (and patent) their own!
With the good initative it would actually going to be a great news for some of us in our xountry trying to transact with people fom other country.
Paypal will actually boost a flexible transaction online for many people.
I read about this today also , I wonder if paypal is going to come out with a crypto coin or token if they do then that will be huge for the crypto sense.
Blockchain is fully mainstream now...which kind of bums me out tbh...
Everyone should keep in mind what exactly this is and is not. This is not a replacement for cryptocurrency transactions themselves, rather a move by PayPal to corner the point of sale payment processing for cryptos. Like if you go to a store and want to pay with cryptocurrency.
From what I can see it isn't exactly groundbreaking stuff. It requires PayPal to act as a trusted party in the transactions. Ironically they are trying to get their piece of the pie by doing what many cryptocurrencies are trying to disintermediate (kill the middle man like PayPal)
Let's pretend this had nothing to do with cryptocurrency for a minute and think of it like regular money. What they are proposing is a complicated version of a prepaid credit card. People will still need money to fund a prepaid card(secondary wallet), then that prepaid card is just given to the other person.
You still need to be verified by PayPal in some way. Either by putting your BTC or other cryptocurrencys into their system first. Or by some agreement to repay them if you don't hold the money within their system based on our unreliable system of credit scores.
What is concerning is that this patent is all basically possible through bitcoins own improvement protocols through use of escrow and multisig. For shits and giggles someone should offer a prize to a high school kid to build a dapp with Ethereum that makes this look like child's play. They have just patented a glorified and highly unoriginal smart contract.
Before they have a chance to push out a wallet, Lightening, Truebit, and ZCash's Sapling update will likely make the whole concept want to crawl in a hole to contemplate a new scheme for getting a piece of the action they fear losing.
They fees will be through the roof, would not be worth the trasaction.
You mean they aren't doing it out of the kindness in their hearts?
There is apparently a working hardware solution I didn't know about that does the same thing. That's an even bigger problem, the original patent needs to be less broad.
https://cointelegraph.com/news/paypal-filed-a-patent-to-speed-up-crypto-payments-bitcoin-dev-argues-it-already-exists
wow this is great, I am glad that there are changes happening when it comes to paypal transaction, the virtual currency is getting popular. Imo this is really great news! :D greatly appreciate this update @jrcornel
I don't really understand what paypal maybe Doing but i geuss we have to wait and see what thy are up to .
WOW! PayPal support for crypto? Interesting article.....