The popular online payment and merchant company PayPal has filed a patent for tech that aims to speed up cryptocurrency transfer times.
An application for what PayPal developers have coined an “Expedited Virtual Currency Transaction System” was published on March 1 by the U.S. Patent and Trademark Office (USPTO).
The filing outlines a method by which private keys (the strings of numbers/letters used to transact and control one’s cryptocurrency holdings) are transferred from a buyer to a seller behind the scenes.
The goal of the concept is to decrease the amount of time it takes for online payments to go through between a buyer and a merchant. Interestingly, the method aims to eliminate the process of sending a transaction and waiting for it to be included in the next block on the network (how this would affect security we do not know).
CoinDesk explains that “to do this, PayPal proposed a way to create secondary wallets with their own unique private keys for buyers and sellers. The system would transfer private keys corresponding to an exact amount of any given cryptocurrency.”
The PayPal filing goes on to say,
“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.”
PayPal has held partnerships with bitcoin payment processors since 2014 biut has yet to roll out a popular platform. Additionally, it’s worth noting that PayPal co-founder Peter Thiel is also invested heavily in bitcoin via Founders Fund, the VC firm he created.