Mastercard has been awarded a new patent by the U.S. Patent and Trademark Office, that deals with making cryptocurrency transactions a lot faster; this by using a new system that links them with a centralized fiat account. This would be efficient in times when cryptocurrency networks were congested and users would need to make a payment or a transaction quickly.
Mastercard is one of the most important credit card and financial services company, and them being interested in filling their portfolio with blockchain patents like this one is a testament to how they believe that in the future blockchain transactions could comprise an important part of the number of payments and purchases made in the whole market.
This patent would be directed to help massify the use of cryptocurrencies in the future by accelerating cryptocurrency payments. The patent application states:
“IT OFTEN TAKES A SIGNIFICANT AMOUNT OF TIME, AROUND TEN MINUTES, FOR A BLOCKCHAIN-BASED TRANSACTION TO BE PROCESSED, DUE TO THE COMPUTER PROCESSING TIME AND RESOURCES REQUIRED TO VERIFY AND UPDATE THE BLOCKCHAIN. CONVERSELY, TRADITIONAL FIAT PAYMENT TRANSACTIONS THAT ARE PROCESSED USING PAYMENT NETWORKS OFTEN HAVE PROCESSING TIMES THAT ARE MEASURED IN NANOSECONDS”
So, as a consequence of the longest waiting times, store managers and clerks would disregard the use of these payments or trust in the good faith of the buyer, adding an identification component to the payment that takes away from it an important feature: privacy or anonymity.
This is not the first blockchain and cryptocurrency related patent that Mastercard gets lately; they have scored more than 30 patents regarding blockchain and cryptocurrency integration with their own payment systems, though their stance about cryptocurrencies currently is clear: They won’t support any kind of cryptocurrencies that are not backed up by governments, adopting a clear policy of embracing blockchain while putting cryptocurrencies aside.