PayPal Deepens Crypto Footing With Layer-2 Solutions and NFT Patent Applications

PayPal / Source: Adobe

PayPal has filed a series of patent applications that indicate the payments giant aims to research and build up across multiple domains within the cryptocurrency ecosystem.

One of the latest patent applications, filed in March 2022 and made public on Thursday, delves into the selection process for validators or miners responsible for adding transactions to the blockchain. 

The document states that the company’s disclosed techniques could “advantageously allow steering of blockchain requests to a desired subset of miners/validators.”

Three additional patent applications, also filed in March 2022 and published on September 21, explore different aspects of PayPal’s crypto-related endeavors. 

PayPal Patent Mentions NFT Marketplace

One application focuses on enabling off-chain transactions through non-fungible token (NFT) marketplaces, introducing new methods and systems for seamless transactions.

It describes a system where users can buy and sell NFTs through a third-party service provider. That provider is not specified, though Ethereum is mentioned in the text.

“The NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger,” the filing said. 

“Examples of such assets include […] digital images and videos, music, collectibles, and other digital art along with deeds to personal property, event tickets, legal documents and other real-world items.”

Another patent application introduces the concept of an “omniverse,” a product designed to operate across multiple metaverses. 

PayPal has developed an online transaction processor that leverages a user’s blockchain preferences and interactions within various metaverses to provide personalized recommendations for digital asset purchases.

The third patent application outlines an online transaction processor aimed at facilitating payments between users and merchants operating on different network layers (layer-1s and layer-2s) in a more efficient manner.

This processor seeks to streamline cross-layer payments, enhancing the overall payment experience.

PayPal Expands Suite of Crypto Products

The latest patent applications come as the payments giant continues to expand its suite of crypto products and services. 

Back in August, the company announced that it is rolling out its PYUSD stablecoin soon. 

The dollar-pegged asset is issued by Paxos, a blockchain infrastructure firm that used to issue Binance USD (BUSD) stablecoin.

Furthermore, the payments giant also launched a new feature that allows users to hold and interact with Bitcoin (BTC) and other cryptocurrencies in their accounts. 

The new functionality, called Cryptocurrencies Hub, will allow users to not only hold a balance in various cryptocurrencies but also engage in transactions involving these digital assets.

By accessing the Cryptocurrencies Hub, PayPal users will be able to buy, sell, receive, and send cryptocurrencies. 

More recently, the company launched a USD conversion service that enables users to seamlessly convert their digital currencies into US dollars.

With this service, crypto wallet users in the US can directly convert their crypto holdings into USD and have the funds available in their PayPal balance.