PayPal is looking for a go fast option that will vastly upgrade the speed of cryptocurrency payments….
On the 1st March PayPal, the on-line financial services payment processing giant founded in 1998, filed a patent with the US Patent and Trademark Office (USPTO). In it PayPal show that they have developed a system where senders can swap private keys rather than sending coins over the network through traditional means.
Currently the ball-park amount of time it takes for Bitcoin blocks to be mined is around 10 minutes which in turn means transactions take a similar amount of time to be confirmed by the network.
FROM PAYPAL’S FILING
“In many transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will 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.”
Shortening block times is not new. Many cryptocurrencies have tried to find answers but have not found the ideal solution. They have come up against:
- Higher fees for shorter times.
- Delayed confirmations due to congested networks.
CONFIRMATION TIMES ALMOST COMPLETELY ELIMINATED
PayPal’s idea is revolves around automatically creating multiple secondary wallets for its users with private keys which could be combined and transferred to match any desired payment amount. PayPal believe confirmation times would be almost entirely eliminated with their patent.
PayPal’s filing also 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.”
To deal with their increased number of cryptocurrency transactions PayPal is creating new internal processes and expanding their team.
When will it happen? Well maybe not tomorrow, next month or even next. Many other companies have been filing cryptocurrency patents but have yet to develop them into actual products.