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Jack Dorsey wins patent for fiat-crypto payments network – all eyes on Lightning Network

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The crypto space has been expanding at a rapid pace and disrupting traditional systems. This has sparked a lot of interest among the giants of the technological and commercial sectors. From Elon Musk to Mark Zuckerberg, anyone who’s someone has taken an interest in cryptocurrencies.

Jack Dorsey, CEO of social media giant Twitter, is a big believer in cryptocurrency and the potential it has. Dorsey had publicly endorsed the Lightning Network as a payment solution that will allow Bitcoin users to instantly send funds with close to zero fees.

From preaching to creating

Dorsey has also been preaching crypto in Africa while he was on a tour of the continent. He has already visited Nigeria and Ghana and attended some crypt meetups there. He is convinced that Africa will play a huge role in defining the future of Bitcoin.

Dorsey’s payments company Square, introduced Square Crypto, a branch dedicated to the growth of decentralized networks through the use of development, design, and marketing in 2019. Since then, Jack has been directly involved in the crypto space.

According to recent reports, Square has won a U.S patent granted by the U.S. Patent and Trademark Office, for a network that enables seamless crypto-to-fiat transactions. The patent describes a system that would allow users owning different types of assets to transact with each other in real-time.

The network “permits a first party to pay in any currency, while permitting the second party to be paid in any currency,” meaning the system will automatically exchange the payment from the sender into the asset requested by the receiver. This would supposedly be made possible using a private blockchain that records transactions in real-time.

The patent was filed back in 2017, and it notes:

“The disclosed technology addresses the need in the art for a payment service capable of accepting a greater diversity of currencies…including virtual currencies including cryptocurrencies (bitcoin, ether, etc.)”

The new system could be a game-changer for the financial sector as this could make cross-border payments completely hassle-free and allow merchants to accept a wide range of currencies. Square thinks it can “remove barriers” with this system.

Furthermore, the patent suggests that the system could also extend to add support for other asset classes including securities, derivatives or loans.

Focused on the Lightning Network

The company also introduced its first crypto-based product on January 21 – a “Lightning Development Kit” (LDK) to help developers integrate Lightning with their bitcoin wallet applications. The kit includes an API, language bindings, demo apps, and other items that would “make integrating Lightning easy, safe, and configurable,” according to a company blog post.

The post further stated:

“We spoke with dozens of wallet developers. What we heard was a desire for flexibility when integrating Lightning. Wallets and applications require different key store and backup mechanisms, security approaches, UX tradeoffs, and more. That means the solution is building for more wallets, not fewer.”

Dorsey first announced his plans to integrate the scaling technology with Square’s mobile app, in an interview with podcaster Stephan Livera.

“It’s not an ‘if,’ it’s more of a ‘when,’ and how do we make sure that we’re getting the speed that we need and the efficiency,” Dorsey told Livera.

“We don’t think it stops at buying and selling [bitcoin]. We do want to help make happen the currency aspect.”

Dorsey is also an investor in the bitcoin-oriented startup Lightning Labs and has also offered several grants to many in this space to support the development of the bitcoin network. Dorsey has said multiple times he believes BTC could become the “native currency” for the internet.

“I think Bitcoin’s the best bet because it’s been the most resilient, it’s around for ten years, it has a great brand, and it’s been tested a bunch. As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, Bitcoin is a pretty high probability,” he said.

While Jack might not be giving us a ‘Twitter-coin,’ he is surely boosting Bitcoin and the crypto space with it, with various innovations pertaining to this industry.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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