Electronics payments firm PayPal just filed an application for an ‘Expedited Virtual Currency Transaction System,’ according to a report from CoinDesk, cited by Finance Magnates.
This new patent is related to a system in which private keys are exchanged between the buyer and the seller, in a secure and anonymous manner. These keys are actually strings of characters that represent ownership of cryptocurrency, allowing cryptocurrencies to be traded.
Improved transactions speeds, the main purpose
PayPal’s goal is to make transactions on a crypto network more efficient so that they can happen ‘off-blockchain’. Basically, they want to allow transactions to be made between secondary wallets, belonging to a buyer and seller. Also, these wallets will all have their own private keys.
With this patent application, we should expect to see a system that will “eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment.”
For the moment, it is not yet known how long it will be until this happens or how this system can be introduced to the cryptocurrency markets, as well as which currencies will be compatible with the system.
PayPal patent filing is one of the most recent propositions to increase transaction speeds on multiple various crypto networks. Obviously, this aims to solve scalability on the Bitcoin blockchain.
PayPal is no stranger to digital assets
It’s not the first time when the payment processing service gets involved in the blockchain/cryptocurrency world. Specifically, back in 2014, PayPal announced partnerships with BitPay, GoCoin, and Coinbase, some of the most well-known crypto payment processors.
Founder Peter Thiel is one of the biggest Bitcoin investors, known for believing that the world is currently underestimating the power of Bitcoin.
“It’s like a reserve form of money, it’s like gold, and it’s just a store of value. You don’t need to use it to make payments.”
We’re looking forward to seeing how this project will evolve since we’re talking about an important player on the payments market, as PayPal’s involvement could have a big impact on the price of Bitcoin.