Square Wins Patent for Cryptocurrency Payment Network
Tags: Investing, Blockchain, Payment, Cryptocurrency, Bitcoin

Square Wins Patent for Cryptocurrency Payment Network

Is the future of blockchain close?

2018 has been the year of blockchain from its start, when Bitcoin prices hit the historic highs and then were cut in half in just a month, like a roller coaster. Blockchain news, reports, and interviews have saturated mainstream media outlets. There are new ICOs every day, and countless blockchain summits, conferences, and meetups. The blockchain technology was portrayed as the future of the internet, and Bitcoin as the future of currency.

However, the majority of blockchain’s applications are still in cryptocurrency, and cryptocurrency is only used as an investment by most people; it still has almost no other uses. Yet this is about to change. The San Francisco-based Payment System firm filed for a patent in September 2017, and the U.S. Patent and Trademark Office (USPTO) has approved Square’s application to patent a system for letting merchants accept cryptocurrencies alongside conventional payment methods and cash out in their currency of choice. Square is the first large payment system to enter the crypto space.

The patent contains the following details: “The disclosed technology addresses the need in the art for a payment service capable of accepting a greater diversity of currencies . . . including virtual currencies including cryptocurrencies (bitcoin, ether, etc.) . . . than a traditional payment system in a transaction between a customer and a merchant, and specifically for a payment service to solve or ameliorate problems germane to transactions with such currencies. Specifically, the payment service described herein can facilitate real-time (or substantially real-time) transactions, allowing a customer to pay in any currency of their choice, while the merchant can receive payment in a currency of their choice.”

However, Square is not the first system for letting merchants accept cryptocurrency payments. Many startups have been constantly innovating the payment process. These include Bitpay, founded in 2011; TenX, founded in 2015, which aims to process cryptocurrency in real time; and UTrust, founded in 2017, which aims to offer instant transactions, buyer protection, and crypto-to-cash settlements. What sets Square apart is that it already has a huge customer base and tremendous market penetration. It is always easier to introduce new products to an existing market than to open a new market.

Blockchain is not mystical, nor is it a scam. It is a new technology that has not yet been fully understood by the general public. A lot of education still needs to be provided for blockchain to be mass adopted, beyond people simply buying ICO tokens. However, many startups are already moving forward with this new technology, including some big companies. Square, as one of the world’s leading payment systems, has already stepped into the blockchain and cryptocurrency space and won a patent for a cryptocurrency network. This move makes us wonder, how far away is our future? How close are we to fully adopting blockchain technology? If the future is this close, are you ready to adopt this new technology?