Mastercard obtains patent to accelerate cryptocurrency transactions

It currently takes about 10 minutes to process a transaction based on the blockchain, which hampers the adoption of virtual currencies. In granting a patent to Mastercard, the US Patent and Trademark Office has taken into consideration the need for a method to shorten this processing time and consequently increase the speed of cryptocurrency transactions.

Bridging the need for speed

Industry can potentially join the mainstream of the financial system as Mastercard has obtained a US patent for a new method of accelerating payments. This move is expected to revolutionize the world of cryptocurrencies with an inevitable impact on the global digital market.

Depending on the growing demand for digital currencies, the patent allows for the introduction of a new transactional speed increase system.

"Blockchain-based cryptocurrencies have seen increased use compared to traditional fiduciary currencies, by consumers who appreciate anonymity and security lately. "

It solves an important problem, namely speed.

"It often takes a long time, about ten minutes, to process a blockchain-based transaction because of the IT processing time and resources needed to verify and update the distributed registry. Meanwhile, traditional fiduciary currency transactions are processed in nanoseconds, "reads the document.

Mastercard tends to integrate cryptocurrencies in its service

Seth Eisen, Mastercard's Senior Vice President of Communications Addressed CNBC to provide an explanation for the ambition of the company investing in the cryptocurrency industry.

"We are constantly looking for ways to bring new ideas and innovations to the marketplace to create value for us and our customers. Patent applications are part of this process, taking the necessary steps to protect the company's intellectual property, whether or not the idea comes to the market. "

However, the anonymity and privacy features of crypto-currencies make Mastercard skeptical . They must be fully regulated and issued by the central bank.

"As long as they are supported by a regulator and have value ... they are not anonymous and meet all the regulatory requirements, I think it would be of greater interest for us to explore," explained Ari Sarker, the co-chair of the Asia-Pacific business of Mastercard.

In addition, the financial giant will offer a new type of account able to treat cryptocurrencies through existing systems of fiduciary currencies. This account should be able to identify the amounts held in the client's fiduciary and cryptocurrency currencies. The transaction would be made on the rails of the currency currencies while acting as a cryptocurrency.

Mastercard also submitted a US patent application to speed up the verification speed of Blockchain's nodes last May, demonstrating its determination and its high ambitions regarding emerging technologies.

Do you think that the new patent granted to MasterCard would facilitate the adoption of cryptocurrency payments? Share your opinion in the comments section below.