Recent Patent Increases MasterCard’s Cryptocurrency Payment SpeedJuly 19, 2018
MasterCard has been given a patent from the U.S. Patent and Trademark Office, giving them a method of increasing the speed of Cryptocurrency transactions. The patent was explained on Tuesday 17 by publishing a document explaining how they’ve found the need for increasing the speed of Cryptocurrency transactions based on the growing demand for the same.
The document talked about how many users prefer to use Blockchain currencies over traditional fiat currencies. This is especially true when talking about consumers who value anonymity and security.
The Problem With Cryptocurrency Payment Transactions
Regarding the wide disparity in payment processing times between the two classes of assets, Cryptocurrencies will often be seen in “disadvantage”. It often takes about ten minutes for a Blockchain-based transaction to be processed; this is already considered a significant amount of time. Traditional fiat transactions are handled with the use of payment networks, which often process these transactions in a matter of nanoseconds.
Later on, the Patent explained that -because of it- many entities, especially merchants, retailers, and other providers would hesitate to accept Blockchain currency for products and participating in Blockchain transactions.
In one hand, there are problems with Crypto transactions speed.
Some users feel uncomfortable by the way Cryptocurrencies and Blockchain function as well, as they behave so differently from traditional payment methods.
MasterCard proposed to combine the system fiat currencies with digital assets. That would potentially promote the adoption while retaining the benefits of decentralization.
Reducing Transaction Time In Blockchain-Based Currencies Payment Process
Thanks to this, the Patent given to MasterCard would grant it with the rights for a method for managing fractional reserves of Blockchain currency. MasterCard would be provided with a new user account, which would let them use existing fiat-intended systems with Cryptocurrencies. The method would let them store both fiat and Cryptocurrencies in it, linking two accounts to consumer’s bank where they would handle one for fiat wealth and one for Crypto.
Mastercard’s Own Blockchain? New Ways To Innovate
It isn’t completely clear what MasterCard wants to do; like many patents, the idea makes perfect sense, but people still ask what they want with it. It is also good to mention that maybe the system would be supported by a Blockchain of its own, and there have been no words about it.
MasterCard’s senior vice president for communications, Seth Eisen said that they are always studying brand new ways to innovate things around the market to create value for both the company and their customers.
The use of patent applications is part of this innovating process, taking small steps to protect the company’s intellectual property even if the idea never comes to the market.
MasterCard has been searching for ways to add Blockchain-based currencies to the company for a very long time. In June, users reported two patents for the banking company.
MasterCard is apparently trying its best to secure as many systems and processes as possible even if they’re not developed any time soon.