A patent filed for in the USPTO by MasterCard has been successfully won by the payment technology giant on July 17, 2018. MasterCard has been awarded the patent to develop a “method and system for linkage of blockchain-based assets to fiat currency accounts”. This development is basically meant to increase the speed of cryptocurrency payments by a large amount.
The published patent mentions how a massive number of citizens have been willing to switch to cryptocurrency over traditional fiat payments as the former tends to offer way more secrecy and security, but at the same time, the transaction time for cryptocurrencies – which is irrationally higher than fiat payments – puts the development at a serious disadvantage, compared to regular banking transactions.
The patent focuses on the technological advancements in the storage and processing speeds of transactions taking place on the ever-expanding technology of the blockchain. Currently, blockchain transactions happen to take more than ten minutes apiece to process, where traditional cash or even banking transactions on networks would take less than a fraction of a second.
The issue of transaction speed is a major cause for the lack of scalability of cryptocurrencies as users, including a large base of retailers, merchants, and service providers are jittery about accepting or even trying crypto payments.
To battle this issue, MasterCard is going to offer a special user account that can process transactions in cryptocurrency, although it will be operating through fiat. This innovative account will connect sequences of profiles with the ability to identify a user’s fiat currency amount, the crypto equivalent of that amount, an account identifier, as well as an address.
The payments would utilise the transaction and safety features of the fiat currency’s payment rails, but at the same time, the transactions would represent a cryptocurrency. Adding to the facility of a transaction, MasterCard will be processing payments in such a way that any fraud or asset risks will be detectable by the company.
Consistent risk-free transactions will be established with the help of all risk algorithms that are available.