US-based Square Inc has patented its idea to set up a crypto payment network, according to a public document. The network or system would allow the merchant to make and receive payment in the form of cryptocurrency. The system would also allow the merchant to withdraw the amount thus received on any of its preferred choice of currency.
It took Square almost a year to receive the patent. The company first applied for the patent in September 2017 and was granted the patent through a public letter on August 21st, 2018. The recent development will bring Square close to its competitors who have already had a similar system in action. One such platform that offers similar features includes BitPay.
The latest patent will add to the company’s point of selling (POS). The company already enjoys a great level of penetration in the market. The cryptocurrency payment network would make the company’s position even more prominent. Its recent patent victory would allow merchants to receive payment in Bitcoins without shifting to another payment method or go for a manual process of converting cryptocurrency funds into fiat.
The patent confirmation letter also elaborated on the working of the payment network. The new network will do away with the delays in cryptocurrency transactions. Bitcoin transactions are often criticized for being slow. According to the patent letter, the new Bitcoin payment system would use the company’s peer-to-peer Cash App. Square introduced the app late in 2017 and early 2018 for trading Bitcoins. Although the Cash App has been around for sometimes, trading on the app is not really heavy. But, the Square CFO Sarah Friar claimed of the company being in its growth phase.
The new payment network would confirm Bitcoin transactions at a speed similar to the credit card transaction processing time. This, however, will be achieved through a private blockchain which will record the transactions of Square-managed wallets in real-time. This will allow the new payment system to confirm any changes or transaction before they are confirmed to the public blockchain. Every cryptocurrency transaction that takes place on the company’s wallet will be recorded in the Square ledger.
Though the company has received the patent for its latest payment network, it is yet to confirm whether Square will add the network to its POS services. Square Inc, unlike other firms, is really serious about acceptance of cryptocurrencies. There are many companies like Bank of America who has toyed with cryptocurrency and blockchain research. Square CEO Jack Dorsey said that “he truly believes in Bitcoin. He further mentioned that he believes that Bitcoin would be the Internets native currency in the coming ten years.”
Square is not only interested in transacting Bitcoins. Dorsey said that the company doesn’t view cryptocurrency as a transformation technology. The new cryptocurrency payment by Square is expected to become available to use soon. The new system although will confirm Bitcoin transactions really fast than the traditional, and the possibility of double spend will always be there.