Since the inception of Bitcoin and other cryptocurrencies, it has been debated whether or not Bitcoin would make into mainstream markets. It was difficult to imagine using Bitcoin like fiat currency. Mastercard is about to answer all the questions and doubts.
Mastercard is a leading global payments & technology company that connects consumers, merchants, issuers and governments through digital transactions. Until now, it only it only provided payment services for only currencies deemed legal by the government of each country.
What Patent Is All About
By winning a patent recently, it would now be able to enable bitcoin transactions. These transactions could be open to be spent in any country globally. The patent allows Mastercard to protect a method that would manage “fractional reserves of blockchain currency.”
The document was published with U.S. Patent and Trademark Office. It states that the increased usage in blockchain currencies is due to customers prioritising anonymity and security. According to the document, the system includes a storage system, a transceiver, and a processing system. The storage system includes a resource repository and transaction repository that stores submitted blockchain transactions.
The patent reads:
“There is a need for a technological solution to provide a partitioned blockchain that is capable of storing multiple transaction formats and types in a single blockchain, reducing the computing resources and processing power required for deployment and operation of the blockchain, while also providing for enhanced usage of permissions for blockchains.”
The current issue with blockchain transactions is the time take to process each transaction. Blockchains have been clogged up due to increased popularity. As a result both parties involved in the transaction have to wait for the payment process to finish. In this case, transactions can take place only in the light of mutual trust. This limits the scope of blockchain transaction penetration into the market.
It is believed that Mastercard is proposing to hold a reserve of Bitcoin. This implies that the it could validate transactions in milliseconds. These transaction would ensure anonymity and security to the users.