The USPTO will grant Mastercard yet another new patent, this time for creating a method of increasing the speed of crypto payments. The patent was published on July 17th and it explains why the need for such development exists.
Crypto payment speeds in need of improvement
The crypto world continues its development and has made another step towards mainstream adoption thanks to Mastercard’s recent efforts. The credit card giant has requested a patent for creating a new way to improve the speed of crypto transactions, which was consequently granted a few days ago.
According to the patent document, the crypto sphere is in dire need of improvement when it comes to transaction speeds, especially taking into account the growth in demand.
The document claims that blockchain-based currencies are increasingly being adopted but that they lack the appropriate systems for handling payments. Fiat currencies have an advantage here since these transactions can be completed within nanoseconds, as the document claims. Cryptos, on the other hand, take up to 10 minutes or more to be processed, which does not meet demand.
With speed as a key issue when it comes to crypto payments, Mastercard has managed to come up with a way to fix this.
New accounts as part of the solution
According to Seth Eisen, Senior Vice President for Mastercard, the company is not bringing new products to the market in order to deal with this issue. However, they do have an idea regarding how to increase the payment speeds, and the solution is a new method, instead of the new product.
The company’s plan is to introduce a new type of account, which will use the payment systems perfected for fiat currencies, modified to work with cryptos. The accounts will link various profiles in order to identify the amount in fiat that the account holder has and how many digital coins they have. Additionally, the address and account’s identifier would also become known via this method.
After that, the transactions would simply go through the rails already established by fiat transactions, the only difference being that they will now serve cryptos.
This is a significant step forward for cryptocurrencies, especially when it comes to mass adoption. As such, it was greeted with positivity from the community, as well as from Tom Lee, who called it a validation of the entire idea of digital money.
With this, Mastercard has helped the crypto world once again. Its previous contribution to the crypto sphere was seen earlier in the year when they filed a patent application to develop a way of increasing the speed of verification for blockchain nodes.