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PayPal filed a patent for the NFT market

PayPal It took a big step towards creating its own blockchain ecosystem by applying for a patent. A system for purchasing and transferring non-fungible tokens (NFT). Application made in March published On September 21, a way for both on-chain and off-chain NFT transactions is being announced.

Patent application currently pending, Describes a system where the user can buy and sell NFTs through a third-party provider. But this provider is not specified Ethereum is mentioned in the text.

Relating to: PayPal allows US users to sell cryptocurrency via MetaMask

PayPal plans to use the full potential of NFTs for tokenization, going well beyond collectible exchange:

“NFT in this example can represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger. […] Examples of such assets include: […] digital images and videos, music, collectibles and digital artwork, as well as personal property deeds, event tickets, legal documents and other real-world items.”

The system can be customized in a variety of ways. For example, it may allow fractional purchases through distribution governance token, this can then be changed sequentially. Also, adecentralized autonomous organization (DAO) “It can be used to increase the liquidity of NFTs through a dedicated platform associated with the service provider.”. NFTs can also earn from royalties.

Scheme of off-chain NFT trading proposed by PayPal. Source: USPTO

Actions taken by the service provider may include compliance and risk management. Users can have their own digital wallets but are not required to do so. Alternatively, a third-party broker may provide various storage and payment services. Off-chain transactions can be processed within a period of time “multipurpose wallet” e-mail associated with the service provider It includes both buyer’s and seller’s wallets:

“Therefore, no transfers are recorded on the blockchain and there is no need for the transaction to be published on the blockchain network or the gas fees associated with that transaction to be paid on-chain.”

According to the application, Any currency can be used in the system. in august PayPal introduced its own stablecoin, PayPal USD (PYUSD), developed on Ethereum.

Your first day as President and CEO @PayPal. I’m excited to join this team with a strong mission and an outstanding track record of revolutionizing the way millions of people around the world take control of their financial lives. PayPal team, let’s change the world!

— Alex Chriss (@acce) September 27, 2023

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