The document, which was posted on the website of the United States Patent and Trademark Office (USTPO), says that the amount of users who prefer translations in the cryptocurrency is rising, but the processing speed of transactions leaves much to be desired.
The document states that it usually takes a considerable amount of time for a transaction to be made via blockchain, approximately 10 minutes, because of the speed with which the computer processes information and what resources are needed to confirm and update the resources. Conversely, conventional payment transactions processed using payment networks often have processing time, measured in nanoseconds. Therefore, many actors, particularly merchants, retailers, service providers and others, should be cautious about the blockchain for products and not participate in transactions with it.
The company proposes to enter an updated type of account for user accounts in order to reduce transaction processing time. Because of that cryptocurrency transactions can take place in the already-existing payment mechanisms and security systems used for transactions with fiat currencies. Accounts will consist of several portfolios keeping such information as the total amount of cryptocoins and fiat money, IDs and addresses.
WHY IS IT IMPORTANT?
- The technology will assist the payment network with evaluating the chances of scams and risks in the operation of transactions. To do this, the system will assess the data of credit bureaus, demographic information, as well as historical data on transactions in the blockchain.
Earlier, USPTO has released two patents for the Mastercard. The two-way method will initially encode an image of a payment card and then, after encryption with a public and private key, will store it on the blockchain. With the second method, travelers would have to share detailed information about their destinations and locations, then this data will be transferred and stored in the blockchain, after that transmitted to all nodes within the network.
By Ekaterina Ulyanova