PayPal Moves into Blockchain with Patent Application for NFT Trading System

Recent filing reveals that the online payment giant PayPal has filed a patent application for a non-fungible token (NFT) trading system.

A patent application from PayPal that focuses on a method for trading, buying, and sending non-fungible tokens (NFTs) has been filed. The application, which was made public on September 21, describes a structure for both on-chain and off-chain NFT transactions.

A third-party service provider would run an NFT marketplace, according to PayPal’s patent application. The application specifically states:

The NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger.

The fact that Ethereum is mentioned in the document even though the service provider isn’t named emphasizes the wide range of assets that NFTs can stand in for, from digital artwork to legal documents.

The adaptability of PayPal’s suggested approach is one of its more intriguing aspects. The system might provide fractional ownership by issuing governance tokens, according to the petition.

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.

The operational priorities of PayPal include risk management and compliance. Individual digital wallets are an option for users; however, the system does not require them. In relation to the subject, the application states:

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.

The system’s ability to handle different currencies is significant. The application, which follows PayPal’s August debut of its Ethereum-based stablecoin, PayPal USD (PYUSD), claims that “Any currency could be used in the system.”

The recent filing of a patent by PayPal shows a significant push into the NFT market, opening the door for numerous cutting-edge asset tokenization and trading solutions. In the rapidly developing world of NFTs and blockchain, PayPal’s suggested system would be a game-changer with its emphasis on flexibility, user options, and adaptability to diverse sorts of assets.

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