Square Wins Patent For Crypto Payment Network
September 4, 2018 4:43 pm
Square, the digital payments firm has won a patent for carrying out cryptocurrency payments. The patent is regarding a payment network that will allow merchants to accept payment in any crypto, including Bitcoin and other cryptocurrencies.
The patent states:
“The disclosed technology addresses the need in the art for a payment service capable of accepting a greater diversity of currencies… including virtual currencies including cryptocurrencies (bitcoin, ether, etc.)… than a traditional payment system in a transaction between a customer and a merchant, and specifically for a payment service to solve or ameliorate problems germane to transactions with such currencies. Specifically, the payment service described herein can facilitate real-time (or substantially real-time) transactions, allowing a customer to pay in any currency of their choice, while the merchant can receive payment in a currency of their choice.”
Note that Square is not the first payment provider to provide the option to merchants to accept payments in cryptocurrency that is auto-converted into the local currency. BitPay is one such platform which has been offering this service since 2011.
Square has already captured a significant part of the payments market. Once the company adds cryptocurrencies to its payment options in the Point-of-Sale (POS) system, the facility will be available to millions of merchants without any additional work involved.
The patent also describes a process that will eliminate any latency-based delay in the POS system. This will ensure that the transactions will occur at the same speed as a normal credit card transaction. Bitcoin has often been criticized for its incredibly slow transaction times, it seems that this process will help eliminate the delay for good.
Square will be maintaining a private blockchain that will record transactions in real time. It will help cut down the incidents of double spend attacks. The risk of cyber attacks will effectively be transferred from the merchant to the payment service provider. This will provide an added vote of confidence to traders and consumers alike.
Jack Dorse, CEO, Square said that the company sees cryptocurrency as a transformational technology.
This news was originally published on CCN.