Paypal recently filed a patent for a system specially designed for cryptocurrencies that will allow fast and efficient processing of digital transactions. On March 1 the United States Patent and Trademark Office or USPTO published Paypal’s application for an “Expedited Virtual Currency Transaction” that will allow a buyer and seller to swap private keys (a combination of letter-and-number-strings that will control or manage a user’s cryptocurrency holdings) in order to shorten the processing time for payments. Efficiency is assured when the step of sending a particular transaction and waiting for its inclusion in the next block within the network is eliminated.
Paypal’s patent will create sub-wallets each with its own one-of-a-kind private key available for sellers and buyers. The system would then transfer these private keys with a corresponding specific amount of a particular digital currency. The patent application states: “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.”
It was 2016 when Paypal last filed an application with the USPTO for a modular payment module that would accept digital currencies such as litecoin, bitcoin, as well as dogecoin. The co-founder of Paypal, Peter Thiel, is reportedly seriously invested in bitcoins as evident from the virtual currency firm he co-founded called Founders Fund.
Paypal’s goal for the Expedited virtual currency transaction system patent is to lessen payers and payees’ waiting time when using virtual currencies. According to Paypal, such a situation has made most users be wary of using digital currencies – an issue that has prompted most to prefer traditional modes of payment such as credit cards thereby slowing cryptocurrency’s full adoption in the digital online market. Thus, Paypal explains, “(the) need for an expedited virtual currency transaction system,”