Mastercard Obtains Patent Aimed At Speeding Up Cryptocurrency Payments
Mastercard obtained a patent on Tuesday from the U.S. Patent and Trademark Office (USPTO). The patent outlines a unique system that Mastercard believes could significantly increase cryptocurrency transaction speeds.
Slow transaction speeds and overall week scalability has significantly hindered the adoption of a large array of cryptocurrencies. There have also been a large number of proposed solutions to increasing transaction speeds, like Bitcoin’s lightning network. However, we have not yet seen such solutions gather major mainstream adoption or an overall market impact thus far.
Mastercard has identified this issue and is making a serious push to enter the market. Their patent expands upon this idea and current market trend by outlining how “It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed… Conversely, traditional fiat payments that are processed using payment networks often have processing times that are measured in nanoseconds.”
These types of issues are among some of the major hurdles projects like Bitcoin face when trying to become a major worldwide currency. If Mastercard is able to make cryptocurrency settlement speeds competitive to that of Visa or even PayPal, then these decentralized currencies may begin to gather a larger amount of true retail users.
To offer this level of cryptocurrency settlement speed, the company plans to offer a new a type of user account which would leverage current fiat settlement systems to facilitate cryptocurrency transactions. This would mean on blockchain transactions could be implemented and settled through current fiat on/off ramps.
This type of account could be revolutionary for the space as individuals would finally be able to manage their fiat and cryptocurrency holdings under the same account and traditional payment card system.
This project is still in its absolute infancy and there is no set schedule or release date for offering such a product. Nevertheless, this marks the beginning of a extremely beneficial and progressive project to link fiat and cryptocurrencies.
This is additionally no the first time Mastercard has expressed interest in cryptocurrency or blockchain technology as just last year they filed a patent which outlined a system to help aid refund services and online global markets who accept cryptocurrency.