On 17th of July 2018, MasterCard won the Patent from the United States. The Patent has been awarded by the Patent and Trademark Office (USPTO) of US in order to develop a “method and system for linkage of blockchain-based assets to fiat currency accounts”. The new system of MasterCard is expected to help the users of cryptocurrency in speeding up crypto payments.
The objective behind the patent is to provide better facilities to process and store cryptocurrency based transactions. However, this decision has received mixed reactions from the public. The cryptocurrency users expressed their views through Reddit and discussed the pros and cons that are likely to be witnessed as a result of this decision.
As per the document provided for the patent by the US, this decision is important because:
“It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed … Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured in nanoseconds … Therefore, many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions.”
Transaction Using the New Method
It is reported that as a part of reducing the time taken for processing crypto payments, MasterCard has decided to offer a new user account which has got an innovative way of cryp.
The new account is capable of making transactions in cryptocurrencies with the existing method which is used for the transaction of fiat currency. The new account will also be able to connect a sequence of profiles which has the ability to identify user’s blockchain amount, fiat currency amount, account identifier and address.
Besides processing the transaction which is made using the cryptocurrencies, MasterCard is also capable of detecting fraud and risks in assets. Most importantly, the transaction can also make use of the features of fiat currency such as safety methods and payment rails.
Every transaction made with MasterCard represents the crypto transaction. The chances of risk for MasterCard are minimized by making use of risk algorithms and information that can be accessed by the payment networks.
It is anticipated that the efforts of MasterCard to speed up crypto payment will definitely boost the crypto market in multiple other ways. Keep updated and stay tuned for more news.