In fact, PayPal is trying to optimize the encrypted money payment process between merchants and buyers on the retail or e-commerce platform. According to the patent related documents published by USPTO, the project is called the "fast virtual currency trading system".The content of the file describes the way that the buyer exchanges private key with the seller in the background. The private key refers to a series of numbers and letters that are used to trade or control the digital money assets that they hold, so as to prevent every transaction from being included in the block and broadcast to the public chain.
This concept aims to shorten the payment time between the consumer and the merchant and avoid the long waiting time in the block to confirm the transaction. To do this, PayPal has proposed a way to create a two - level wallet containing the proprietary private key of the buyer and the seller. The system transfers the private key corresponding to the amount of any given number of money.
At the same time, the patent document emphasizes that the verification transaction system, which includes the payment area, greatly restricts the potential of encrypted currencies such as bitcoin. The content of the patent shows:
To ensure that bitcoin transactions can eventually transfer bitcoins to the payee account, the payee must wait for the miners to confirm the transaction until the goods or services have been transferred to the paying party. In the case of multiple transactions, for the payer or the payee, they may have to wait for 10 minutes. For such a long time, the payer or payee may be more willing to deal with the traditional way of payment than the virtual currency. It is this problem that greatly hinders the application of virtual money.
Peter Todd, a bitcoin developer, responds so
In this regard, a bitcoin developer and application encryption consultant Peter Todd said that PayPal is trying to authorize a technology developed by Opendime, which has existed in the encrypted currency industry.
Figure: Via Twitter
Opendime was founded in 2016 by a former bitcoin enterprise Coinkite, which mainly provides bitcoin and Wright currency wallet, and payment terminal services, which supports legal tender including US dollars and RMB. Opendime has multiple signature bank level security, allowing users to use their private keys to transfer bitcoins.
In structure, Opendime is different from other hardware purses such as Trezor and Ledger. The latter can be reused. Opendime is equivalent to a U disk that can only be used once. The principle is similar to the deposit tank, the U disk must use the internal storage funds at the time of destruction, so that it is converted into cash.
The similarity of PayPal's patent technology to Opedime is that the private key can be switched on the back of the chain in the background. As the Opedime team says:
Since we are putting the private key into the physical form that you can trust, you can simply set up the Opendime unit volume. Because Opendime does not have the number of preset bitcoins, so how much you want to save.
On the other hand, the process of using Opendime to transfer bitcoin is similar to that of PayPal. It is understood that PayPal's technology is to encourage each user to transfer the entire wallet or private key associated with the predefined number of encrypted currencies. As the patent document introduces:
The system and methods disclosed can be disclosed by transferring the specified amount to the private key of the payee, thereby saving the payee for the time to wait for a virtual currency.
So, can PayPal technology optimize the payment of encrypted money
If PayPal technology can be implemented and used in large-scale commercialization, it can not only allow businesses and buyers to realize the payment of encrypted currency, but also reduce transaction costs and eliminate the long verification cycle.
Recently, a series of global cooperation events occur, just as the late application of PayPal opened the jackpot. Such as:
In South Korea, a large hotel reservation platform, Yeogieottae, announced a collaboration with the country's largest encrypted currency exchange, Bithumb, to receive encrypted currency payments.
In Japan, the biggest retailers in the country, such as hotel chain operator Capsule, airline Peach and electronics retailer Bic Camera, have said that they have accepted bitcoin payment for some time.
The low cost of PayPal and the instant encrypted money payment processing system allow retailers to get rid of the hours of validation cycles to deal with user payments.
However, if this solution occurs in a centralized way of dechain, there may be problems in the process of transferring private keys. In this regard,PayPal's patent document clearly explains that it can rely on the equipment of the service provider to carry out the process of settlement and paymentThe process may also cause the centralized system to monitor the transfer of the private key.
In a specific case, a payment service provider, taking PayPal as an example, can use another payment service provider's device to execute the 100 ways to transfer private key. In some application cases, it is also possible to perform '100 ways of transferring private keys' with one or more system vendors or users.
Last week, a tech BloggerOwen WilliamsThe findings of the GDPR (The General Data Protection Regulation: the EU general regulation of data protection) were published on its Twitter. The results of the survey reveal that PayPal shares user sensitive financial data with more than 600 other entities, causing widespread concern in the industry.
So in this environment, unless PayPal technology can use unmanaged wallet, and allow businesses and users to control their private key in the whole process. Otherwise, the encryption of money payment and the centrality of the private key will lead to the leakage of the data or the illegal sale.Visit: