<\/p>\n
PayPal made major progress toward creating its own blockchain ecosystem by filing a patent application for a nonfungible token (NFT) purchase and transfer system. The application, filed in March and published<\/a> Sept. 21, describes a means of carrying out transactions with NFTs, both on- and off-chain.\u00a0<\/p>\n The patent application, which is still pending, describes a system where users can buy and sell NFTs through a third-party service provider. That provider is not specified, though Ethereum is mentioned in the text.<\/p>\n Related: PayPal enables US users to sell cryptocurrency via MetaMask wallet<\/a><\/em><\/strong><\/p>\n PayPal envisioned using the full potential of NFTs for tokenization, going far beyond the exchange of electronic collectibles:<\/p>\n \u201cThe NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger. [\u2026] 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.\u201d <\/p><\/blockquote>\n The system could be customized in a variety of ways. For example, it could accommodate fractionalized purchases through the distribution of governance tokens, which then could be traded themselves. In addition, a decentralized autonomous organization \u201cassociated with the service provider may be used to promote NFT liquidity through a dedicated platform.\u201d NFTs could also earn income from royalties.<\/p>\n Processing by the service provider could include compliance and risk management. Users could have their own digital wallets but would not be required to. A third-party broker could provide a variety of storage and checkout services as an alternative. Off-chain transactions could be handled within an \u201comnibus wallet\u201d associated with the service provider and containing both the buyer and seller\u2019s wallets:<\/p>\n \u201cTherefore, 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.\u201d<\/p><\/blockquote>\n Any currency could be used in the system, according to the application. In August, PayPal introduced its own stablecoin<\/a>, PayPal USD (PYUSD<\/a>), built on Ethereum.<\/p>\n It\u2019s day one as @PayPal<\/a>‘s President and CEO.\u202f I’m fired up to join this team on a powerful mission and with a remarkable history of revolutionizing how millions around the world take control of their financial lives.\u202f\u200b PayPal team, let\u2019s go change the world! pic.twitter.com\/PIZuY8iKn2<\/a><\/p>\n \u2014 Alex Chriss (@acce) September 27, 2023<\/a><\/p><\/blockquote>\n\n