PayPal applied for a patent for the NFT market platform, paving the way for on-chain and off-chain asset transactions!

PayPal recently announced that it has applied for a patent on the NFT market platform with the U.S. Patent and Trademark Office. This move attracted widespread attention in the industry. It is understood that NFT (non-fungible token) is a digital asset based on blockchain technology that can represent any item or equity in the real world. By applying for a patent, PayPal aims to further promote the transaction of on-chain and off-chain assets and provide users with a more convenient and secure transaction experience. This news once again demonstrates PayPal's technical strength and innovation capabilities as the world's leading payment platform.

PayPal’s vision is to tokenize more assets by leveraging the full potential of NFTs. These NFTs are not just exchanges of digital collectibles, but unique digital materials that can be tracked and managed through decentralized blockchain ledgers. These assets range from digital images, films, music, collectibles, and digital artwork to real-world objects such as personal property deeds, event tickets, and legal documents. Through the tokenization of NFT, PayPal hopes to promote the circulation and trading of digital assets and provide users with more convenience and flexibility.

This system has a variety of customization methods. For example, decentralized purchasing is achieved by distributing governance tokens, and these tokens can be traded. In addition, service provider-related decentralized autonomous organizations can leverage dedicated platforms to facilitate collaboration. At the same time, NFT can also generate income through patent licensing.

#PayPal off-chain NFT transaction diagram

Service providers may need to comply with regulations and conduct risk management. Users can choose to have their own digital wallet, but it is not required. You can also choose to use storage and settlement services provided by third-party brokers. Off-chain transactions can be processed through a multi-purpose wallet, which is associated with the service provider and contains the buyer’s and seller’s wallets.

The document states: "There is therefore no need to register the transaction on the blockchain, broadcast the transaction to the chain or pay on-chain transaction fees."

According to this patent application , any currency can be used in this system. PayPal launched the stablecoin PayPalUSD (PYUSD) in August this year, which is built on Ethereum.

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