Blockchain was initially considered as a digital ledger meant for cryptocurrency management only. However, gradually we start realizing that it is like a multifunctional swiss knife. Its decentralized working mechanism, robust security, fast processing and open-source nature are some reasons why we are seeing a bright future of this technology. Nowadays, this blockchain technology is serving various professional fields including shipping, medical, army & even for voting too. Still, cryptocurrency transactions remain the primary task of blockchain. Its evolution with technology improvisation is clearly visible in the eCommerce sector. Many eCommerce portals are utilizing this technology for global transactions. Let’s understand how it works.
How does a blockchain payment gateway work?
A blockchain payment gateway works like any random digital wallet such as PayPal and Google Pay. The only difference in their transactions is money control. In conventional digital wallets, the centralized banking system and money exchanges play a crucial role in sending and receiving money. On the other hand, the blockchain money transfer is decentralized. Nobody has centralized control over the transactions occurring through blockchain. Actually, miners are the people who monitor the transaction’s successful execution in blockchain technology. A blockchain payment gateway is meant for making transactions in cryptocurrency.
Just like other digital wallets, a dedicated cryptocurrency payment acceptance button is provided to embed with websites and mobile apps. When a person clicks on that button, the option of payment in cryptocurrency appears. A user just needs public and private keys if the hash value to execute the transaction. Let me elaborate in detail why the adoption of this technology is crucial for eCommerce businesses.
Why should you adopt this technology right now?
The number of cryptocurrency users is aggressively increasing globally. It is not a centralized payment system and works on open-source technology. No matter whether trading in cryptocurrency in your country is valid or not, anyone can join this network. In the second quarter of 2018, 66 million crypto users were existing on this planet. As per the stats of data for the third quarter of 2020, this number has increased to 101 active users. Currently, 191 million crypto-asset users are existing and their number is rapidly increasing.
As an e-commerce business enthusiast, you should look at business opportunities in it. A blockchain payment platform provides a secure place for both buyer and seller to make transactions. People having cryptocurrency accounts prefer to make payments in Bitcoin, Etherium and Satoshi etc. This technology is most popular among the modern generation and getting a crypto payments button will open a window to engage them.
How to manage your cryptocurrency for the maximum profit?
Cryptocurrencies are more volatile than bank currencies. Their value may fluctuate with a huge difference. This is the main reason why many people hesitate to adopt the blockchain payment system.
There are some smart solutions to prevent your money from loss. Please take a look:-
- Request your customers to pay in the market’s leading cryptocurrencies such as Bitcoin, Ethereum, XPR and Tether. These cryptocurrencies hold a good reputation in the global market. Their values also fluctuate but also rise with a boom.
- The options of cryptocurrency conversion are also available. There are more than 2000 cryptocurrencies currency existing. This number will rise with time. If you are receiving payments in newly introduced cryptocurrencies, they are easily convertible to the most valuable cryptocurrencies.
For the convenience of online business owners, crypto-exchanges are available for withdrawal. Whenever you see a huge upsurge in the value of cryptocurrency, just withdraw the amount in USD through these exchanges.