PayPal (TIKER: PYPL.NASDAQ) is working on new technology to boost the speed of its cryptocurrency payment services. The system will reportedly allow for instantaneous transactions between buyers and sellers, Finance Magnates reported.
The company detailing its plan for an “Expedited Virtual Currency Transaction System” in an application filed with the US Patent and Trademark Office. 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 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," the filing explains.
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.