The website of the United States Patent and Trademark Office can now show a new patent filing by PayPal. It seems that this fiat money fast online payment corporation is trying to create an “expedited virtual currency transaction system” which allows to exchange private keys as part of the trade instead of making blockchain transactions.
To understand the process better, one should think about how gold money were replaced by paper money which still cost the same sum. In this case, the actual blockchain transaction is replaced by its private key equivalent. Another classic financial object this particular new private key invention resembles is a bank check.
This mechanism might turn out to be revolutionary if implemented correctly. One of the most known disadvantages of cryptocurrency is the speed of transactions. While many blockchain code advancements are still being developed, this initiative is another way to solve the problem.
Leader of this company Peter Thiel previously expressed doubts about the viability of most cryptocurrencies as a payment tool. But he is more optimistic about Bitcoin: to him, it looks like a reserve form of money or digital asset.