In early March, PayPal filed in the U.S. patent and trademark office (USPTO) application for “a system of accelerated transactions using virtual currencies”.
At the core of this system will lie with the method by which private keys are securely transferred from the buyer to the seller.
This concept should help to reduce the time of making payments due to eliminate the process of sending transactions to the blockchain, and therefore, expectations of its inclusion in the next block on the network.
To do this, PayPal suggested way to create a secondary wallets with unique private keys for buyers and sellers. The system would provide the private keys corresponding to the number of transmitted cryptocurrencies.
As stated in the patent document:
“Systems and methods presented in this application allow virtually eliminate the time that the payee has to spend to ensure that it will receive payment in a virtual currency through a transaction, by passing the recipient’s private key, included in the wallets of virtual currencies and associated with a predefined amount of virtual currency equal to the amount of the payment specified in the transaction.”
Recall that PayPal announced their first partnerships with several leading bitcoin payment processors (BitPay, Coinbase and GoCoin) in the 2014th year. Last autumn, the co-founder of PayPal Peter Thiel (Peter Thiel), said that critics of bitcoin “cryptocurrency underestimate”. Reportedly he invested heavily in bitcoin through the venture capital firm Founders Fund.