PayPal patented a way to speed up the transactions

The method assumes peers to neglect the approval time on the blockchain
05 March 2018   1419

Last week on March, 1 US Patent and Trademark Office published a peculiar patent application. The application was filed by PayPal and proposed a rather unorthodox way of virtual currency exchange process. Traditionally, peers seal the deal, make a transaction and wait for it to be included in the next block of a network. This usually results in relatively long waiting time until peers can actually get the cryptocurrency.

Now, PayPal suggests creating secondary wallets along with the primary ones by each user. As these secondary wallets have their own private keys assigned, PayPal proposes swapping these private keys between peers instead of submitting a transaction and waiting for the inclusion. The wallets would come with a predefined amount of the cryptocurrency. The swapping process will happen 'behind-the-scenes' and be performed by the system.

This idea is notable because although it eliminates lag in the payment process by the order of magnitude, it seems to eliminate the blockchain transparency component along. Starting from 2014, with establishing key partnerships with several bitcoin payment processors PayPal merchants got the chance to accept cryptocurrency. Also, it was reported that the co-founder of PayPal, Peter Thiel made a big investment in Bitcoin.

Chinese Bitcoin Miners Share to Reach 66%

Such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency, expert believes
12 December 2019   86

Miners based in China currently control two-thirds of the total processing power of the bitcoin network. It is reported by Reuters, citing a fresh report by CoinShares.

In June, this value was 60%, reaching the highest level in December over the past two years, during which CoinShares tracks this data. According to the chief researcher of the company Chris Bendiksen, such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency.

This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.

Chris Bendiksen

Head of Research at CoinShares

As the publication recalls, such major mining equipment manufacturers as Bitmain, MicroBT and Canaan are also based in China.

CoinShares representatives also noted that since June, the bitcoin hash rate has increased by 80%, which was partially possible due to the high profitability of this activity and more powerful equipment.

Bitcoin Difficulty Chart
Bitcoin Difficulty Chart

Despite the harsh rhetoric of the Chinese authorities regarding cryptocurrencies, in November, the National Development and Reform Commission (NDRC) did not include mining in the list of “undesirable industries” that are subject to ban.