Mastercard, an American multinational financial services corporation headquartered in New York, United States has won a US patent for speeding up cryptocurrency transactions. A document released on July 17 by the US Patent and Trademark Office (USPTO) explains MasterCard’s latest patent as a “Method and system for linkage of blockchain-based assets to fiat currency accounts”.
According to the patent, blockchain based transaction often takes approximately 10 min to process the transaction because of the computer processing time and resources need to authenticate and update the blockchain. The processing time of traditional fiat payment transactions are measured in nanoseconds. Hence, people who are used to with fast transaction times are always either forced to wait a significant amount of time for a blockchain transaction to be carried out, or the payee must rely on the payer that their transfer will be valid. As a result, an anonymity of the blockchain may leave the payee at a disadvantage, because the inability for the payee to verify the payer may disallow the payee from identifying various risk or fraud detection techniques. Therefore, many people wary of accepting blockchain currency for products and participating in blockchain transactions.
Document states that,
There is a need to improve on the storage and processing of transactions that utilize blockchain currencies.
The document further goes on to explain
“A method for managing fractional reserves of blockchain currency includes: storing, in a first central account, at least a fiat amount associated with a fiat currency; storing, in a second central account, at least a blockchain amount associated with a blockchain currency; storing, in an account database, a plurality of account profiles, wherein each account profile includes data associated with a consumer including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address; receiving, by a receiving device, a transaction message associated with a payment transaction”
To speed up the transaction, Mastercard will create a secondary wallet to store a plurality of account profiles, each profile including a fiat currency amount, blockchain currency amount, account identifier, and address.
It further states that
“Wherein the transaction message is formatted based on one or more standards and includes a plurality of data elements, including at least a data element reserved for private use including a specific address and a transaction amount; identifying, by a processing device, a specific account profile stored in the account database where the included address corresponds to the specific address included in the data element in the received transaction message; and updating, by the processing device, the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message”
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