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PayPal filed a patent request on virtual banking system for Bitcoin transactions

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PayPal filed a patent request on virtual banking system for Bitcoin transactions. The company’s patent application is for an “accelerated virtual currency transaction system”, which could speed up the transactions, especially if it is anonymous.
“Virtual currencies like Bitcoin have revolutionized money transfer and payment technology by allowing for inexpensive peer-to-peer transfer of value between users”, said PayPal in its patent filing. “However, the decentralized nature of such virtual currencies is accompanied by a need to confirm transactions, and those confirmation processes introduce a time delay or latency period between the initialization of the transaction and the point at which the transaction has been confirmed”, adds the company.
The patent is aimed at speeding up transaction times, an issue that has plagued Bitcoin. The world’s largest cryptocurrency processed an estimated seven transactions per second globally, far fewer than the 50,000 on major credit card networks.
The system described by the patent application is meant to work by creating secondary wallets that each include a respective secondary wallet private key, and a transaction is performed using the primary wallet private key to transfer different predefined amounts to each of the secondary wallets. When an instruction is received to transfer a payment amount to a second user, they are allocated a subset of the first user’s secondary wallet private keys that together contain cryptocurrency that equals the needed amount.
PayPal’s shares declined initially at the beginning of the session, but rose after the announcement. The company’s shares rose by 84% over the past 12 months, while the S&P 500 added 14% over the same period.