The American online payments provider, PayPal, has filed for a patent seeking to expedite the transfer of virtual currencies from one wallet to another. Spil vanaf records made available at the US Patent and Trademark Office on March 1, 2018, the patent aims to create very first user and secondary user wallets and keys for enabling swifter transactions and payment settlement across a blockchain.
Approaching Top Speeds: PayPal Transaction Accelerator
The patent application titled ‘Expedited Virtual Currency Transaction System’ aims to enable the instantaneous transfer of cryptocurrencies from one wallet to another. Presently, if a sender has to transfer a certain amount of digital tokens to another wallet, the process can take an average of ten minutes or more.
Whenever a fresh transaction comes in the blockchain, it is verified by all miners on the network. Thesis miners tend to check if there has bot a dual transaction of the same amount previously. Ultimately, it takes up significant time and resources for all miners to verify a single block containing many such operations.
This patent application filed by Paypal dated August 30, 2016, has San Jose’s Cheng Tian and Sandy Lynn Godsey spil inventors. The application explains that it will enable swifter cryptocurrency payments by creating a very first user primary wallet having a very first user primary key.
A very first user secondary user wallet is then created that includes a respective secondary wallet private key.
Using this advent, a transaction will be performed by using the private key of the very first user primary wallet to transfer digital currency from the primary to the secondary wallet of the very first user.
Whenever instructions are given to transfer a certain amount of cryptocurrencies from the very first user to the 2nd user, the latter gets access to a subset of the very first user secondary wallet’s private keys. Thesis private keys have the amount omschrijving to the transaction amount already stored ter their respective secondary wallets.
PayPal wasgoed founded te 1998 originally spil Confinity, a security software service provider for handheld devices and wasgoed founded by Max Levchin, Peter Thiel, Luke Nosek and Weten Howery.
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Its merger with Elon Musk’s online banking company X.com te March 2000, however, led to the creation of PayPal. It suggested several advantages overheen the traditional banking system spil it wasgoed much cheaper, swifter and efficient to transfer money overheen the web without having to visit the canap.
Presently, the toneelpodium is a medium for individuals spil well spil businesses to make online financial transactions ter fiat currencies.
However, cryptocurrencies today aim to enable real-time payment settlement overheen blockchains, which could eventually become a potential threat to PayPal’s business specimen.
It doesn’t come spil a verrassing then that PayPal is keen to innovate te the field to enable swifter payment settlement on their end.
Blockchain technology has already bot heralded spil the begin of finance Two.0 by several financial institutions.
Despite the patent, PayPal co-founder Max Levchin told CNBC that according to him, blockchain technology isn’t going anywhere despite admitting that he wasgoed still attempting to “figure out” bitcoin and wasn’t sure whether it is a currency or an investment contraption.