Paypal Applies For "Virtual Currency Transaction System" Patent (Uh-Oh)

in #paypal7 years ago (edited)

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This must be a grim month for Paypal. On March 1st, they filed for a (minor) patent for the very technology likely to render them completely obsolete. It feels a little like farriers ("a specialist in equine hoof care, including the...placing of shoes on their hooves") around the world in 1920 re-tooling their anvils to do muffler alterations.

Like most patents, it's both boring and technical. The gist of it is they are patenting a technology to complete transactions between two end users by creating two new wallets for each user for each transactions, then moving funds to the new hot wallets for a swap. It sounds a little like a "Paypal Lightning Network", which is one of the few ways you can get me even less excited about any "Lightning Network". Off-chain solutions are bogus.

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I'm not exactly sure what makes this additional step necessary, since the patents notes funds are verified before being moved to the second wallet. You would think Paypal's very existence in this transaction would be to serve as a "trusted" counterparty/intermediary, rendering this solution a bit odd in concept.

It has been some time since Paypal was last caught filing cryptocurrency patents. In 2016, Paypal filed for a patent related to the ability to accept Bitcoin, Litecoin and Dogecoin as a payment. I'm not sure that anything came of this particular patent, and they haven't made a filing since... until this March.

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I'm not exactly a big fan of Paypal, in case that wasn't too clear. They regularly make life hell for Ebay sellers with their "no questions asked" forced-refund policy. Paypal has become a regular staple of online abuse, particularly at Ebay, where you can buy just about anything, return it broken, and get a refund out of the seller's frozen account funds. They also charge relatively high fees for transfers and, generally speaking, aren't operating a very professional organization. I can't imagine I'd want them handling my cryptocurrency.

Despite my complaints, major acceptance of any cryptocurrencies by a "household name" vendor would be a great boost for Bitcoin. Many believe this will be the next catalyst for another price run, so even if it is not true in fact it may become a self-fulfilling prophecy in terms of market sentiment.

It would be nice for Paypal to create some satisfied customers for once.

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As much as PayPal is useful in the common day, I do anxiously await for cryptocurrencies to replace it. I hold no ill will towards them, but I do believe that times are changing and that the time has come.

I don't trust them in the slightest, and I haven't even been screwed over by them (directly.)

Wow, I go along with with you this was inevitable.

But I control had terrible experiences with paypal in the past, and I crave crypto to afford a viable unconventional to it. It is a embarrassment that the Litepay platform launch was a bomb keep up week, but we will take part in a legitimate competitor in a little while I fee

I dislike Paypal with passion, I don't deal with them anymore

I definitely avoid them whenever possible, but sometimes you are locked in (like with Ebay.)

sometimes bleak and sometimes bright, it's a very natural thing .. life is like the wheels where its pentil once above and can also above
@lexiconical

They charge relatively high fees for transfers is SO RIGHT. And I just knew they are a pain for eBay sellers. That's bad.

Yes, I imagine running their business is awfully profitable given the degree of fees and little actual product provided.

I used paypal for a few months to handle payments with airbnb, in Poland it cost me about 10% of revenue, I do not recommend it to anyone and I would not like such practices in the crypt world

Yep, 10%, that sounds about right.

(More than) half as abusive as a credit card.

PayPal is starting to cool itself

Hmz, someone don't want to be left behind....
Legit move from Paypal: can't beat it, so implement it!

Indeed. If you can't beat em, join em. Fair play I guess.

PayPal is in desperate need to improve and innovate. Looks to me like thy are throwing shit at the wall hoping something will stick. I don’t see real action and progress coming from them.

Wow, I agree with you this was inevitable.

But I have had terrible experiences with paypal in the past, and I want crypto to provide a viable alternative to it. It is a shame that the Litepay platform launch was a flop last week, but we will have a legitimate competitor soon I feel.

Well it will work for them as they already have a user base. So technically it's kind of a smart move, as the average consumer will still use there service.

In that regard, as I noted, it's actually a positive for cryptos as it will bring in some new users in a hopefully more user-friendly fashion.

Oh yeah, for sure its good news. The more outlets of crypto the more exposure for us!

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