Online payment processing pioneer PayPal filed for a U.S. patent for something called an “expedited virtual currency transaction system.” In a filing, PayPal says delays in crypto transactions occur because of the decentralized nature of the currencies and the need to confirm transactions. PayPal points to bitcoin (BTC) transactions as an example. Bitcoin transactions broadcast to the bitcoin network nodes, and that can take roughly 10 minutes or more for the “mining” process to confirm the transaction before transferring the virtual currency to the payee, the filing says.

To resolve this issue, PayPal says it will use technology to:

Identify a first user primary wallet associated with a virtual currency and including a first user primary wallet private key. First user secondary wallets are created that each include a respective first user secondary wallet private key, and a respective virtual currency transaction is performed using the first user primary wallet private key to transfer predefined amounts of the virtual currency from the first user primary wallet to each of the first user secondary wallets such that first user secondary wallets are provided with different predefined amounts of the virtual currency. Subsequently, an instruction is received to transfer a payment amount to a second user, and the second user is allocated a subset of the first user secondary wallet private keys included in respective first user secondary wallets that are associated with predefined amounts of the virtual currency that equal the payment amount.

Read more here.

ThirtyK Staff
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