PayPal’s blockchain patent aims to streamline payments between users and merchants across different network layers.
PayPal is reportedly investigating new opportunities in the blockchain space, particularly with additional Layer 2 solutions and non-fungible tokens (NFTs).
According to a succession of recently published patent applications, PayPal’s research and development priorities revolve around several key areas.
The most recent application, made public on Thursday but initially submitted in March 2022, provides extensive insight into the procedure for selecting validators or miners when adding transactions to the blockchain. This document describes techniques that may permit the directed dispatching of blockchain requests to a particular group of miners or validators.
In addition, three additional patent applications, which were disclosed on September 21, had been submitted in March 2022.
1. The first patent describes new methods and systems for facilitating off-chain transactions using NFT marketplaces.
2. The second patent application describes the concept of an “omniverse,” which refers to a product that functions in multiple metaverses. In this context, PayPal introduces an “online transaction processor” to provide purchasing recommendations for digital assets. These recommendations are tailored to the user’s blockchain preferences and principal interactions across multiple metaverses.
3. A third patent application describes an additional online transaction processor. This processor’s primary objective is to improve the efficacy of payments between users and merchants operating on layer-1s and layer-2s networks.
PayPal’s Move Into Crypto
Financial Giant PayPal’s Move Into Cryptocurrency In September 2020, PayPal began offering Bitcoin trading as part of a significant push into the cryptocurrency market. PayPal is gradually enabling its users to transmit and receive BTC via its platforms.
Last month, PayPal made a significant step into the stablecoin market by announcing its USD-pegged stablecoin, PYUSD. This would place PayPal in direct competition with Tether and other stablecoin issuers.
It is a stablecoin based on Ethereum that supports external wallets, allowing for the simple funding of purchases, services, and conversions with PayPal’s variety of supported cryptocurrencies.
Earlier reports suggested that Elon Musk’s X platform, formerly Twitter, will integrate PYUSD. Nonetheless, there has been no substantiation of the same. It will be intriguing to observe PayPal’s entry into Layer-2s and NFTs.
