On Jan 21st, Square, the payment provider, won a U.S. patent for its fiat-to-crypto payment network system. The payment provider applied for this patent on Sept. 14th, 2018, to the U.S Patent and Trademark Office. The Office’s data described it as a payment system that will allow users with different assets to be able to transact with each other in real-time. Here is an excerpt:
“[…] method includes receiving a request for payment associated with a transaction between a first user and a second user, where the request specifies a payment amount in a fiat currency and identifying an indication that the first user intends to satisfy the request for payment using a non-fiat instrument.”
Real-time exchange and automatic exchanges:
The patented network is laced with the ability to exchange the sender’s payment into the desired asset of the receiver. With such beneficial features, the payment system can be highly beneficial for retailers. The fact that the cryptocurrencies face a massive price-volatility in the market sits in contradicting with the often time-consuming process of payment processes by the retailer sector. Square’s payment network addresses this issue in a swift manner as it settles the transactions in real-time and offers automatic exchanges. As per the Office’s abstract:
“… The method also includes initiating a first transfer of a value corresponding to the payment amount in the non-fiat instrument from a first balance of the first user to one or more service balances of a payment service and initiating a second transfer of a value corresponding to the payment amount in the fiat currency from the one or more service balances of the payment service to a second balance of the second user.”
Privacy and the variety of added assets on Square’s network:
Privacy is another factor that has been taken care of. The system enables the users to pay with a ‘privacy coin.’ This is arranged to keep the identities safe. Moreover, the patent network also allows additional support for more assets such as securities, derivatives, loans, and so on.
Square’s view on BTC:
Square weaved BTC into its network two years ago. Twitter’s CEO- Jack Dorsey, who is also the CEO and founder of Square, has always believed in BTC. He has also mentioned it multiple times that BTC has the potential to become the ‘native currency’ of today’s time. Otherwise, the platform has not spoken very much about other cryptocurrencies.
Talking again about Square’s support for Bitcoin, on Jan 21st, Square announced that they are developing ‘Lightening Development Kit.’ The ‘LDK’ will support wallet and app developers to build custom experiences. Some features of this Development Kit will include- “API (based on Rust-Lightening project), language bindings, demo apps, and anything else that makes integrating Lightning easy, safe, and configurable.”