PayPal Files Patent For System To Speed Up Cryptocurrency Transaction Times

[danilogmachado]

U.S.-based payments giant PayPal has filed a patent with the U.S. Patent and Trademark Office (USPTO), published on March 1, to increase the speed of cryptocurrency payments. The patent describes an “Expedited Virtual Currency Transaction System”, involving the use of secondary private keys to shorten wait times for transactions between consumers and merchants.

The patent’s inventors are listed as Cheng Tian and Sandy Lynn Godsey of San Jose, California, with PayPal Inc. listed as the applicant. According to the patent, PayPal is attempting to solve the problem of slow transaction times for cryptocurrency trades that have led potential crypto users to “instead choose to perform the transaction using traditional payment methods rather than virtual currency:”

“Issues like this have slowed the adoption of virtual currencies despite their advantages” the patent states.

The patent details how the creation of secondary wallets with their own private keys will make transaction times much faster, “practically eliminat[ing] the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction.” The shortened wait time is due to the reportedly faster process of transferring the private keys associated with “predefined amounts” of cryptocurrency that are equivalent to the amount in the transaction.

In late February 2018, PayPal’s chief financial officer John Rainey spoke favorably of the possibility for Bitcoin (BTC) to become a popular payment method “used every day”.
https://cointelegraph.com/news/paypal-files-patent-for-system-to-speed-up-cryptocurrency-transaction-times

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[marielbeckham]

It's the first time I hear this. And the news is really fantastic! Finally, the issue with the wait times of transactions will be solved.

[danilogmachado]

I just do not understand why the patent, since the crypto world is an open source

[Brambam]

They want the technology to be theirs, but anyway.

I just do not understand why the patent, since the crypto world is an open source

So this works only for send once and receive once or we can do many transactions with no problem. I assume that their wallet will handle the waiting time. When I get the coin in that wallet I can spend it, but they still need to wait for transferring process to be done. Am I right?

[Coffee135]

It was a long time ago. This is not difficult. But I don't like PayPal. I have no desire to use their services. They have always cooperated with the government and therefore all accounts opened to them will be under threat of arrest. This system had to be implemented by kernel developers.

[veleten]

It's the first time I hear this. And the news is really fantastic! Finally, the issue with the wait times of transactions will be solved.

don't get overexcited,anything that comes from a centralised company like PayPal
who is the direct competitor to any cryptocurrency payment system
could mean only one thing-if you cannot defeat something,take charge of it
patenting first,introducing the super effective system next,claim the ownership in the end

[danilogmachado]

I think it's Utrust's fear that it will launch its crypto payment platform in a month at an event sponsored by google, microsoft and even paypal, kkkkk

[jseverson]

I just do not understand why the patent, since the crypto world is an open source

They either want monopoly, or they want to make money off the technology. I personally don't mind for as long as the patent is filed in good faith, meaning they're actually trying to devise a way to speed things up using the method they described. Intellectual property is still property, after all, and they should be able to do what they want with it.

[richardsNY]

They either want monopoly, or they want to make money off the technology. I personally don't mind for as long as the patent is filed in good faith, meaning they're actually trying to devise a way to speed things up using the method they described. Intellectual property is still property, after all, and they should be able to do what they want with it.

It's nothing really interesting in the first place, especially because of the fact that with Lightning Network, transactions are settled off-chain and instantly already. I can't think of anything that can beat off-chain transactions in any shape or form. On top of that, PayPal could even just use its own global centralized ecosystem to allow user and merchant to settle transactions instantly. At the end of the day, PayPal is just looking to exploit crypto's increasing popularity to boost their fee income. Never will they just do something without any financial motivation behind it, especially so with greedy share holders looking for an increase in operational results. PayPal doesn't give one single damn about crypto transaction times....

[Trimzi]

Bitcoin needs to develop on his own. Paypal wants to take advantage and earn big bucks.
I think that is not the right way. All we need is a solid blockchain.

[jseverson]

It's nothing really interesting in the first place, especially because of the fact that with Lightning Network, transactions are settled off-chain and instantly already. I can't think of anything that can beat off-chain transactions in any shape or form. On top of that, PayPal could even just use its own global centralized ecosystem to allow user and merchant to settle transactions instantly. At the end of the day, PayPal is just looking to exploit crypto's increasing popularity to boost their fee income. Never will they just do something without any financial motivation behind it, especially so with greedy share holders looking for an increase in operational results. PayPal doesn't give one single damn about crypto transaction times....

I wouldn't be so dismissive. Lightning Network testing is going well, yeah, but it hasn't been tested for widespread use. There's no definitive best solution yet. If something ended up working better than the Lightning Network, it should be embraced; Bitcoin will be left behind in the dust otherwise. The more parties there are working on solutions, the better it would be for the end users.

Also, innovation is always good because it can spawn and spur more innovation. Even if this failed, the concept and tech could be used for something better in the future.