The world leader in payment technology solutions, MasterCard, has won a patent to protect the way partial reserves are managed in block-chain, to speed up business transactions using crypto currencies.
Consumers may one day pay for their purchases from their credit cards using bitcoin, but at present MasterCard cardholders can only pay for things they buy in the currency declared by the US government as a legal currency, said Seth Essen, vice president of MasterCard Communications.
In the document published by the US Patent and Trademark Office, MasterCard demonstrates the advantages and importance of dealing in digital currencies, as there is an increase in the use of digital currency through the Block chain by consumers for security and identity concealment, and that many people have preferred Transactions are highly encrypted for anonymity to avoid fraud.
Of course there are disadvantages to the use of digital currency as indicated by the document which is the need to improve the storage capacity and processing of these transactions.
Although Block Chain coins can often provide safety and security to buyers’ information, this guarantee may be limited to those eligible, especially due to restrictions on the Block Chain. For example, digital money transactions still take longer: about 10 minutes for Block Chain transactions vs a few seconds for traditional payments.
As a result, both consumers and traders have to wait a considerable period of time to complete these digital transactions or rely on the goodwill of the motive, according to the document.
However, although the details remain unclear if this method is introduced in the market, this may speed up the collective transactions by allowing cardholders to pay their credit cards immediately using a fraction of their digital currency.
“We are constantly looking for ways to bring new ideas and new innovations to the market to create value for us, our customers and our cardholders. Patent applications are part of this process with steps taken to protect the intellectual property of the company. “
“This is good news for the fast-growing digital currency market,” said Tom Lee, financial adviser to Fundstrat Global.
“It really proves that money or money based on Block Chain is a valid form of transaction,” said Lee, who is an administrative partner and head of research at the stock research firm of Fast Money.