Mastercard has been awarded a US patent to develop a “method and system for linking blockchain-based assets to foreign currency accounts,” significantly speeding up cryptocurrency payments.
Leading payment operator Mastercard is among the top ten leaders in the number of cryptocurrency patents in the world.
The number of patent applications in the development of innovative blockchain solutions of the company is constantly growing. The company received another patent this week. Published by the United States Patent and Trademark Office (USPTO), the document explains that cryptocurrencies and cryptocurrency transactions have recently seen a rise in popularity. Many consumers make their choice in favor of cryptocurrency transactions, but the large disproportion in the speed of cryptocurrency and fiat payments does not suit customers. According to the patent, there is an urgent need to increase the storage capacity and speed up the processing of transactions that the blockchain uses.
The patent explains that processing cryptocurrency transactions takes time, measured in minutes and sometimes hours. In contrast, for regular fiat transactions, which are processed using classic payment systems, nanoseconds are sufficient in most cases.
To reduce transaction times, Mastercard offers an innovative user account type. As a solution to the problem, Mastercard proposes to combine fiat and cryptocurrency accounts into a single account. Such a record will store all information about currency and digital transactions along with account indicators and addresses. Transactions made through such an account will use fiat payment rails as well as the security features of traditional payment systems.
By and large, Mastercard is adding to the existing payment mechanisms and security systems that are used for fiat transactions by adding cryptocurrency transactions to them. The new solution will increase the speed of digital payments and make risk assessment algorithms used by payment networks accessible. External security mechanisms for financial networks will become available for cryptocurrency transactions.
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