Multiple patent applications from PayPal exposed! Involving NFT transactions on the blockchain, and metaverse personalized services.

The payment service provider PayPal, which continues to expand in the cryptocurrency field, was recently found to have submitted multiple patents last year, involving not only cryptocurrency and NFT transactions but also providing customized services in the metaverse.

4 Blockchain Patents Submitted by PayPal

Since 9/21, information about the patents submitted by PayPal in March of last year has been gradually made public. These patent filings consist of 4 documents covering different aspects, as follows:

1. Selecting Validators in a Decentralized Cryptographic Network

This technology is related to the selection of miners and validators. In certain instances, adding transactions to the blockchain request involves providing a second transfer fee and the associated cryptographic signature, which will be paid to a group of miners or validators that meet the criteria. This technology effectively directs blockchain requests to the desired subset of miners or validators.

2. Multi-Layer Cryptocurrency Conversion Using Available Blockchains

PayPal will facilitate cryptocurrency conversion operations through an online transaction processor. The processor detects transactions between users and their counterparties. If the counterparty lacks the necessary digital wallet or node to complete the transaction, the transaction will be facilitated through a service provider.

The diagram below, provided in the PayPal document, illustrates the concept and the following steps:

1. Detect a certain number of cryptocurrency transaction/transfer requests
2. Determine that the counterparty does not have a node on the L2 network for the transaction
3. Provide the user with a digital wallet from the service provider to enable the transaction on L1
4. Use the cryptocurrency in the service provider's wallet to complete the transaction
5. Transfer the amount the user was originally supposed to pay to the service provider via the L2 network

3. System for Purchasing and Transferring NFTs

This method and system involve conducting NFT off-chain transactions through third-party service providers in the NFT market.

As shown in the diagram below, the NFT market may be a decentralized application operated by a service provider or a blockchain-integrated website. Both buyers and sellers can use the NFT market's API for buying and selling goods. During transactions, the service provider updates the NFT's identification code to transfer ownership of the NFT.

In this scenario, the transaction takes place within the comprehensive wallet, Omnibus Wallet, associated with the service provider. The wallets of both the buyer and seller are maintained as part of this wallet. Therefore, there is no actual transaction taking place, and no blockchain fees are required.

4. Omniverse Platform for Predictive Asset Identification and Recommendations Across Different Metaverses

PayPal will offer digital asset recommendations and processing operations across multiple metaverses through an online transaction processor. Recommendations for asset selection and trading will be based on the user's blockchain preferences and metaverse usage.

The diagram below, provided in the PayPal document, outlines the following steps:

1. Detect user transactions in one or more metaverses
2. Determine the digital assets available in the user's digital wallet
3. Select the corresponding blockchain based on the digital assets
4. Determine the user's preferences and familiarity with one or more blockchains
5. Generate usage recommendations for digital assets in one or more metaverses based on user preferences, interactions, and asset holdings
6. Deliver recommendations to the user in the form of digital tokens representing the digital assets purchased by the user

The above are the four patent applications recently disclosed by PayPal, indicating its progressive efforts to meet the needs users may face in the blockchain realm. It is expected that PayPal will continue to introduce new services and products in the future.