Speedy crypto transactions with Mastercard’s new patent
Mastercard has been granted a patent that would allow customers to swiftly pay for their purchases using cryptocurrencies. Mastercard is one of the top most payment companies in the world that links businesses, consumers and governments, together. BCFocus has recently reported about the largest asset manager, BlackRock that is also developing plans to crypto.
With time, the attention of people is gradually shifting from the fiat currencies to the more secured digital currencies. Security associated with cryptocurrencies and more particularly Bitcoin [BTC], which is the leading coin in the crypto sphere, is due to their complex network. The complex procedure of solving mathematical puzzle in expensive computers which involve high consumption of electricity makes cryptocurrencies difficult to attain and hence, secured.
U.S. Patent and Trademark Office (USPTO) has published the document that throws light on payments transactions by cryptocurrencies. The document mentions that virtual currencies have been experiencing an “increased usage over traditional fiat currencies by consumers who value anonymity and security.” However, the difference between the two distinct classes of currencies lie in their duration of transaction. This, indeed, gives cryptocurrencies a “disadvantage” position.
Aimed at speedy crypto transactions, the patent application reads, “There is a need to improve on the storage and processing of transactions that utilize blockchain currencies.” It further stated, “It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed … Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured in nanoseconds … Therefore, many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions.”
Mastercard gives a special attention for reducing the duration of payment processing. This led the company to come up with a different form of user account in the near future. This would facilitate cryptocurrency transaction with the present financial system meant for the fiat currencies. The account would be designed in a manner to connect a number of profiles for the identification of the user’s, “fiat currency amount, a blockchain currency amount, an account identifier and an address.”
Mastercard equally claims that in crypto based transactions, conducted in this manner, “payment networks may be able to evaluate the likelihood of fraud and assess risk for blockchain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and blockchain transaction data, credit bureau data, demographic information, etc., that is unavailable for use in blockchain networks.”
Mastercard has previously associated itself with the cause of protecting the consumer in the domain of cryptocurrency. In 2017, Mastercard made an application for a patent to set up refund services for conducting crypto transactions.
In this context, Tom Lee, the co-founder of Fundstrat Global Analysis welcomed the news. He viewed the new patent document as an explicit statement for validating crypto transaction. Referring to the patent, Lee stated, “It’s really validating the idea that digital money, or blockchain-based money, is a valid form of transaction.”
At the same time, on Tuesday the crypto traders, investors and enthusiasts rejoiced observing Bitcoin [BTC] price surpassed the mark of $7000. Quite shockingly, Bitcoin [BTC] valuation in June dropped to a minimal level of $6000. However, on 17th July, the price was hovering around $7300 and currently, it is marked at $7429. Hence, the new patent of Mastercard may bring positive changes in Bitcoin [BTC] transaction, as well.
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