NFTs and Layer-2s are hotcakes and the market size is also increasing day by day. Since many big institutions are hailing for the blockchain ecosystem. We have seen the frenzy of how Marvel’s Stan Lee and Donald Trump’s NFTs were sold out within hours of launch. But despite that NFT market is facing challenges and PayPal’s patent move is a fresh start to boost NFT trading. Let’s delve into PayPal’s Patent theory.
Why PayPal’s Patent Application Is Stirring a Debate on NFTs?
PayPal, the payment giant, has recently filed a patent application detailing a system to streamline the exchange and trading of non-fungible tokens (NFTs) within its network. This move aligns with the growing popularity of NFTs, which are being used by artists and creators to sell digital assets like art and music across the world.
By entering the NFT market, PayPal aims to simplify the process for both buyers and sellers. However, they also offer environmental, legal, and market risks. Like all other risk assets, there is no clarity on NFT trading though the US government has tried to sort out some of the issues a link to financial regulations still needs some more clarity.
Whereas the newly disclosed application, filed in March 2022, delves into the validator or miner selection process for adding transactions to the blockchain. It introduces techniques that could potentially direct blockchain requests to a specific group of miners or validators.
Paypal’s 3 Unique Key Targets
Additionally, PayPal unveiled three more patent applications on September 21, also originating from March 2022. The first patent outlines methods for enabling off-chain transactions using NFT marketplaces. The second introduces the concept of an “omniverse,” a product spanning multiple metaverses, featuring an online transaction processor providing tailored recommendations for digital asset purchases. The third patent aims to optimize payments between users and merchants operating on different network layers.
Paypal’s Crypto Hangover?
PayPal stepped into the crypto arena with Bitcoin trading in September 2020. Since then, the company has been gradually expanding its crypto services, allowing global users to send and receive BTC. Recently, PayPal announced its own USD-pegged stablecoin, PYUSD, marking a significant entry into the stablecoin market and putting it in competition with issuers like Tether.
Notably, PYUSD, an Ethereum-based stablecoin, supports external wallets, streamlining funding for purchases, services, and conversions with PayPal’s supported cryptocurrencies. It will be a piece of news if Elon Musk’s X platform integrates PYUSD, hold on it’s not official yet.
Paypal has broader aspirations, and getting NFTs around is a warmup to raise PAYUSD into the mainstream.