PayPal Files a Patent Application for the NFT Ecosystem
- PayPal had filed a patent application for an NFT trading and transfer ecosystem back in March 2023.
- The application describes a means of carrying out transactions with NFTs, both on- and off-chain.
- The company will allow users to buy and sell NFTs in a system via a third-party platform.
- Off-chain transactions could be handled within an “omnibus wallet” associated with the service provider.
The non-fungible token (NFT) marketplace has gone down considerably after the 2021 crypto market bull run, as many collections are at an all-time low. The inflow of capital in the industry has also gone down considerably, and investors are wondering if the space is reaching an end. Interestingly, major payments company PayPal has filed a patent application for an NFT trading and transfer ecosystem, attracting attention in a hurry.
According to a patent that was filed in March but came into light recently, the patent application describes a means of carrying out transactions with NFTs, both on- and off-chain. This initiative from PayPal confirms that companies are still interested in the digital asset sector, and trading volumes might jump in the coming days if the situation remains positive.
It is mentioned in the patent application that PayPal will allow users to buy and sell NFTs in a system via a third-party platform. While the provider is not specified, Ethereum (ETH), the second-largest blockchain network, is mentioned in the application. The company stated that it will use the full potential of NFTs for tokenization, going far beyond the exchange of electronic collectibles, while adding:
“The NFT in this example may 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 other digital art along with deeds to personal property, event tickets, legal documents and other real-world items.”
PayPal noted that the system that it seeks to create could be customized in a number of ways, like accommodating fractionalized purchases through the distribution of governance tokens, which could be traded on platforms as well. Further, a DAO, or decentralized autonomous organization “associated with the service provider, may be used to promote NFT liquidity through a dedicated.”
The payments company also noted that off-chain transactions could be handled within an “omnibus wallet” associated with the third-party service provider, which would include both the seller’s and buyer’s wallets, and “therefore, no transfer is registered on the blockchain, and there is no need to broadcast the transaction to the blockchain network or pay the gas fees associated with such an on-chain transaction.”
As reported earlier by BitcoinWisdom, PayPal is heavily promoting its PYUSD stablecoin and announced that it will arrive for select users on Venmo while noting that a broad-scale launch will be coming in the next few weeks.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
