|Mastercard Secures a Potentially Game-Changing Cryptocurrency Patent|
On July 17, the U.S. Patent and Trademark Office awarded a patent to Mastercard (NYSE:MA) that would provide "for linkage of blockchain-based assets to fiat currency accounts."
As noted in the background section of the patent, blockchain currencies have "seen increased usage over traditional fiat currencies by consumers who value anonymity and security." However, the limitations of blockchain are also noted, with traditional payment networks having processing times measured in nanoseconds, whereas blockchain transactions can take a significant amount of time to verify. This inconsistency could persuade businesses and consumers to shy away from blockchain currencies.
The solution offered by Mastercard is a hybrid system that'll incorporate blockchain currencies, but allow them to be transacted on traditional payment channels. Why stick with traditional payment channels and not use blockchain? For starters, it's all about speed. Mastercard believes that using traditional channels would allow transactions involving cryptocurrency to be processed considerably faster than with blockchain.