PayPal Is Seeking Faster Crypto Payments Tech

[Tehol_Beddict 5,636]

https://www.coindesk.com/paypal-eyes-instant-crypto-payments-tech/

“An application for an "Expedited Virtual Currency Transaction System" published on March 1 by the U.S. Patent and Trademark Office (USPTO) details a method by which private keys - the strings of numbers and letters used to transact or otherwise control one's cryptocurrency holdings - are swapped from a buyer to a seller behind the scenes.”

I’m not sure I fully understand what’s being proposed. This doesn’t seem too interesting other than the fact that it’s PayPal. @JoelKatz (or others), would love to hear your thoughts if you have the time to chime in.

[Raindog8383 32]

Or they could just partner with Ripple and use xRapid.

[Trickery 2,469]

Quote

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

Wouldn't work with XRP wallets because you would lose 20 zerps every time.

[Tehol_Beddict 5,636]

15 minutes ago, Trickery said:

Wouldn't work with XRP wallets because you would lose 20 zerps every time.

It also seems to take the trustless part out of the system (e.g. how do I know someone doesn’t still have access to the private key you gave me) but this may be lack of understanding on my part.

[Trickery 2,469]

I imagine it would somehow create a new wallet that the buyer wouldn't have access to. All seems a bit convoluted.

[ThomTheRipplier 84]

interesting idea ... how would swapping private keys help reduce processing time ? 

Won’t there still be confirmation time to transfer the desired amount on to the wallet before the swap?  

[Dutchpinoy 757]

News like this reaffirms my idea that not every pitch Ripple has done, has been succesfull. I can't imagine Paypal not having thought of Ripple and it's solutions prior to comitting to this. Though I wonder, are they being boneheaded or is Ripple lacking for their particular usecase?

[BCRevolution 456]

Silly.

Clearly a "solution" to BTCs long confirmation times, but you have to ask: why use blockchain to begin with then? In addition, if addresses are the minimum transaction then I wonder how this will handle very specific quantities - probably can't/won't, similar to an ATM.

 

[Tehol_Beddict 5,636]

1 hour ago, Dutchpinoy said:

News like this reaffirms my idea that not every pitch Ripple has done, has been succesfull. I can't imagine Paypal not having thought of Ripple and it's solutions prior to comitting to this. Though I wonder, are they being boneheaded or is Ripple lacking for their particular usecase?

Filing a patent diesnt mean they’ve committed to anything. This could also be part of a larger solution we don’t fully understand yet.

[Dutchpinoy 757]

31 minutes ago, Tehol_Beddict said:

Filing a patent diesnt mean they’ve committed to anything. This could also be part of a larger solution we don’t fully understand yet.

Fair enough. Maybe I'm just subconsciously looking for bad press when every factual press item is eyewatering positive.

[Heisenberg 73]

https://news.bitcoin.com/paypal-files-patent-expedited-cryptocurrency-transaction-system/

Quote

The Paypal application explains that the need for this proposed system for cryptocurrencies is due to the time delay or latency period between the initialization of the transaction and the point at which the transaction has been confirmed. It gives as an example waiting for ten minutes or more for a bitcoin conformation, which they indicate hurts the user experience, putting it at a disadvantage over seemingly instant choices such as fiat credit card payments.

“In many transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency. Issues like this have slowed the adoption of virtual currencies despite their advantages. Thus, there is a need for an expedited virtual currency transaction system,” explains Paypal.

 

[Graine 1,340]

So, they want to exchange bags of cash, but in digital. I wonder how they are going to prevent the parties from defrauding each other, since the keys are known to more than just one. 

[Paulo 1,102]

PayPal CEO Dan Schulman exclusive segment on CNBC Mad Money tonight 6PM ET for anybody interested.