Search
Close this search box.
Blog » Business Tips » Could PayPal Make it Easier (and Faster) to Manage Blockchain Payments?

Could PayPal Make it Easier (and Faster) to Manage Blockchain Payments?

Bitcoin And The Rise Of Cryptocurrency

In recent years, there has been a lot of hype surrounding cryptocurrencies and blockchain applications for business. Blockchain payments have been of special interest in many circles.

However, the reality is that all things blockchain aren’t perfect. New platforms are coming out regularly, but eventually, they have the potential to run into problems — especially when it comes to the time it can take to complete cryptocurrency transactions.

PayPal hopes to solve some of these programs with technology detailed in a recent patent filing.

The Speed Problem with Blockchain Payments

Blockchain has been hailed as a great transformative technology. However, the nature of blockchain is such that many transactions need to wait for a block to be added to the end of a chain on a network.

The result has been a real problem for Bitcoin. Transactions using Bitcoin payments can take more than 100 minutes to complete.

For blockchain payments to gain wider acceptance, they need to go through faster. This is what PayPal aims to accomplish.

PayPal’s Blockchain Patent

PayPal’s blockchain payments idea revolves around creating secondary wallets. In order to transact using cryptocurrencies, you need your own wallet. Parties exchange wallet information to complete transactions.

With PayPal’s system, a secondary wallet has unique private keys. The system is set up to transfer these keys with an exact cryptocurrency amount. Here is how PayPal explains it in the patent filing:

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 the virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.

This reduces the need to wait for a transaction to be included in a block at the end of the chain. Instead, the amounts involved can be verified almost immediately.

Making Blockchain Payments More Practical and Accessible

PayPal has been processing cryptocurrency payments for several years now. In fact, if you are a business owner, PayPal can help you manage your payment types, including cryptocurrencies.

If PayPal implements this system, it could further increase the accessibility of blockchain for business owners and their customers. The hope is also that this might bring down some costs. Right now, Bitcoin has become increasingly expensive. Many business owners balk at using Bitcoin for regular transactions and payroll.

One of the best things you can do as a business owner is to accept several payment varieties. The more types of payment you accept, the more customers you appeal to. There’s a growing number of consumers interested in using cryptocurrencies rather than government-issued money. By catering to them, you can reach a wider consumer base.

As the future of currency and payment continues, keep blockchain payments in mind. Accept credit cards. Accept other forms of payment. But don’t leave out cryptocurrencies. They’re part of the future of business.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
Credit Expert
I’m Miranda and I’m a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More