Square, a financial services and mobile payment company, thinks that it has found a way to turn fiat into crypto in real-time point-of-sale transactions.
On January 21, it has been reported that the United States Patent Office awarded Square a patent for a technology that the team argues cracks a present barrier in merchant transactions:
“All cryptocurrencies face the same drawback in that they are not widely accepted. Presently, cryptocurrencies, like bitcoin, are not accepted by most retail merchants, or even by most online merchants.”
However, the team cited a number of drawbacks to current crypto spending, as transactions take a while to process. Minor advances still defy practical timeframes, like buying a hypothetical cup of coffee in a transaction that the blockchain could take hours to record.
The anonymity of cryptocurrencies exposes merchants to possible criminal activity, like money laundering. There’s also the pure money angle, as the fluctuation of crypto exchange rates poses a financial risk to business owners.
For instance, if a consumer purchase that cup of coffee, the technology would receive a request for payment in the consumer’s asset-of-choice while using a privacy coin, and approve it for the merchant to get full value in their asset-of-choice, all in real-time.
Thus, on January 21, Square announced the start of a Lightning Development Kit (LDK) on its blog. Larger than a node, LDK would customize experiences for wallet and application developments, including an API, language bindings and demo apps.