PayPal has filed patents focusing on NFT trading, blockchain validator selection, omniverse interactions, and efficient online transaction processing.
Recently, fintech leader PayPal showcased its aggressive entry into the digital frontier, revealing a series of patent applications. One of the most anticipated for PayPal is their push into the world of Non-Fungible Tokens (NFT). PayPal’s proposed system will allow users to trade NFTs, both within and outside blockchain, on their platform.
On March 21, 2022, PayPal submitted four patent applications. Though the public only became aware of these on September 21, the buzz around them is palpable. One notable application talks about an “off-chain transaction via an NFT marketplace.” This will let users move their NFT assets to other users within the PayPal network.
Diving deeper into the specifics, the patent suggests that numerous digital wallets linked to a service provider will have access to this NFT marketplace. This marketplace ties back to a decentralized blockchain linked to an entity separate from the service provider. A decentralized autonomous organization connected to the service provider might also come into play, boosting NFT liquidity on this exclusive platform. Additionally, the possibility of fractionalized NFT purchases is also on the horizon.
Validator Selection and Cryptographic Innovations by PayPal
Another patent shifts focus to blockchain’s heart—validators or miners. PayPal emphasizes the selection process for these crucial elements during blockchain transactions. This pending patent suggests ways to direct blockchain requests specifically to a chosen group of miners or validators.
How will this work? PayPal’s idea touches upon the introduction of a second transfer fee. This fee, when combined with the original transfer fee, guides blockchain requests to miners or validators that fit certain criteria.
PayPal’s expansive vision doesn’t end here.
Omniverse: PayPal’s Gateway to Multiple Metaverses
The concept of the omniverse isn’t new, but PayPal gives it a fresh spin. They’re exploring a product that interacts with multiple metaverses. With this, PayPal plans to introduce an “online transaction processor.” This tool will suggest digital assets for users to purchase, taking cues from the user’s blockchain preferences and most-frequented metaverses.
Keeping in stride with its digital-first approach, PayPal unveiled its dollar-backed stablecoin, dubbed PayPal USD ($PYUSD), in early August. This move is historic, marking the inception of such a digital asset by a major U.S. financial entity. Not long after, PayPal revised its terms, launching the ‘Cryptocurrencies Hub’ feature. This allows users to hold and engage with Bitcoin and other cryptocurrencies directly via their PayPal accounts.
Online Transaction Processor: Bridging Metaverses
The last of the quartet of patents, still pending approval, describes an innovative online transaction processor. This concept aims to streamline payments between users and merchants operating across various network layers, notably layer-1s and layer-2s.
For those unfamiliar, a layer 2 is an off-chain network built atop a blockchain, known as a layer-1 network. Layer 2 enhances the capabilities of its base layer network. PayPal’s focus on this is timely, given a recent report’s findings: a staggering 95% of NFT holders possess collections that, in current market conditions, have negligible value.
In conclusion, PayPal’s multipronged patent filings highlight its commitment to spearheading fintech innovations, especially in the rapidly evolving world of blockchain and digital assets. As a content writer, tracking such pivotal industry shifts will undoubtedly prove beneficial in creating informative pieces that resonate with readers.