After launching its native stablecoin, PayPal is preparing to delve into NFTs.
PayPal has submitted a patent application focusing on a system for buying, selling, and transferring non-fungible tokens (NFTs).
Publicized on September 21st, the application outlines a structure for both on-chain and off-chain NFT transactions.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Create an NFT: Easiest Way (Animated Explainer)
PayPal's patent application delves into creating an NFT marketplace managed by a third-party service provider. In particular, the application reads:
The NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger.
Although the service provider is not named, Ethereum does appear in the document, highlighting the diverse array of assets NFTs can represent—from digital art to legal papers.
One of the more intriguing features of PayPal's proposed system is its adaptability. According to the filing, the system could allow fractional ownership by issuing governance tokens.
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.
PayPal's focuses on essential operational aspects like risk management and compliance. Users could opt for individual digital wallets, but the system would not mandate it. Regarding the matter, the application reads:
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.
A noteworthy point is the system's currency flexibility. "Any currency could be used in the system," asserts the application, which comes on the heels of PayPal's launch of its Ethereum-based stablecoin, PayPal USD (PYUSD), in August.
PayPal's recent patent application indicates a serious push into the NFT space, potentially paving the way for various innovative asset tokenization and trading solutions. With its focus on flexibility, user options, and adaptability to various types of assets, PayPal's proposed system would be a game-changer in the fast-evolving world of NFTs and blockchain.
