Payments giant PayPal has filed four patent applications to launch solutions related to NFTs, L2 and metaverses.
Token transactions are expected to be conducted on-chain and off-chain through an unnamed third-party service provider. The document mentions Ethereum.
PayPal is looking to harness the full potential of NFTs for tokenization:
“The asset in this example could be any unique piece of digital data that can be tracked using a decentralized blockchain ledger. […] Examples of such assets are […] digital images and videos, music, collectibles and other art, as well as personal property documents, event tickets, contracts and other real-world items.”.
The system is configured in various ways. In particular, to provide the possibility of partial purchases through the distribution of governance tokens. Subsequently, you can start trading with the latter.
Also mentioned among the options is the use of a “service provider-linked DAO to enhance NFT liquidity through a dedicated platform.” Tokens can include the possibility of generating royalty income.
Processing carried out by the service provider allows for the inclusion of compliance requirements and risk management. It is possible, but not mandatory, for users to have their own digital wallets.
A third-party broker may alternatively offer various token storage and ordering options. Off-chain transactions are processed within a “universal wallet” associated with the service provider and containing both buyer and seller wallets:
“Thus, such a transfer is not reflected in the blockchain. There is no need to broadcast the transaction online or pay gas fees.”
According to the application, any currency can be used in the system.
In September, PayPal launched a service for converting digital assets into fiat.
Previously, the payment giant added the ability to buy, sell and transfer cryptocurrencies through its mobile application. The service supports Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Let us remind you that on August 7, the company announced the launch of the PYUSD stablecoin pegged to the US dollar based on Ethereum. The issuer of the coin was the infrastructure blockchain company Paxos.
The asset caused a controversial reaction from members of the crypto community. Some believed that PYUSD contributes to the mass adoption of digital assets, others pointed to the risks of centralization.
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