PayPal is functioning on new technology to enhance the speed of its cryptocurrency payment services.
PayPal has filed an application with the US Patent and Trademark Office detailing its plan for an “Expedited Virtual Currency Transaction System”.
According to the application, the new system will reduce the amount of time taken for cryptocurrency payments to be processed by exchanging the private keys of buyers and sellers.
The private keys are tied to temporary wallets which reflect the payment amount, and the exchange of these keys removes the need for cryptocurrency payments to be processed directly on the blockchain before the payment is confirmed.
AS per the Abstract in Application-
Expedited virtual currency transactions are provided by identifying 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.