Bitcoin for Your Website
How You Can Use Bitcoin For Your Website
The term ‘Blockchain’ is all abuzz right now in the IOT (Internet of Things). In oder to have proper security and validation of cryptocurrencies, you must have access to a digital currency exchange [DCE]. That DCE will have their chosen cryptocurrencies hosted on a distributed ledger [a.k.a. Blockchain]. When those DCEs allow access to their systems via an API [Application Programming Interface] the world of internet commerce will truly open up for any modern business. In other words, with access to a DCE, you can start accepting bitcoin as currency for your website- which offers a lot of potential in terms of profitability.
Introduction to Coinbase: DCE
Coinbase is a DCE based out of San Francisco and they have delivered a suite of functionality that will allow everyday users to make and receive purchases, integrate with common shopping carts, process payments, hold accounts, and even respend the cryptocurrency seamlessly.
Coinbase currently handles Bitcoin, Bitcoin Cash, Etherium, and Litecoin. Rumors of adding future cryptocurrencies are valid as the company has every intention of expanding its reach into the market.
As a result, your site can easily be set up to accept multiple cryptocurrencies via your integrated, or stand alone, shopping cart. Why not use bitcoin for your website when the opportunity is always growing?
Shopping Carts and Cryptocurrency: Maintain Established Costs
Content Management Systems like Drupal, WordPress, and Shopify each have a basic turnkey suite of functionality for eCommerce. All of the pricing for your catalog of products remains in its native currency [US Dollars for those of us in the US]; and the DCE takes care of the currency exchange rates for you.
Payment Processor – the API to the DCE
As part of the market that services eCommerce shopping carts, Coinbase provides an API that allows your website’s shopping cart to process payments via a connection directly into, and out of, the DCE. This includes validation, transfer, and receipt of the desired funds over their Blockchain. After the transaction is complete, the funds will reside in your chosen Deposit Account [a.k.a. Wallet] on their Blockchain.
For each currency within your account, with any DCE, you will be assigned a secure Wallet. This is simply a term for the destination of the funds. It is important to know that, like shares on the stock market, the valuation of the cryptocurrencies are variable; they change. The changes happen 24/7 and they are somewhat manic with shifts. In a single month, you can experience a shift of over 20%. Yes, this is volatile. The volatility has even created its own market of traders and speculation. However, participation in the cryptocurrency market does not mean you have to be subject to the occasional random shifts in value. The funds can be quickly and easily transferred to less volatile tender such as: back to the US Dollar.
Spending with Bitcoin Made Easy
Coinbase goes even further and connects your account on their Blockchain to Shift’s new offering:
The Shift Card. The Shift Card is a Visa debit card with some minor limitations based on jurisdiction. For all intents and purposes, you are now spending your online cryptocurrency with ease. A typical merchant [grocery store, coffee shop, auto mechanic, etc.] or even an online app [Venmo, Uber, Google Pay] won’t know the difference or the origin of the funds – and they won’t care.
In the future…
More currencies are being created everyday. This is in no way an endorsement to run around chasing ICO [Initial Coin Offering(s)]. But, as far as business trends go, (without regard for any individual market segment) cryptocurrencies are here to stay.
The currency values are stabilizing as their base of users grows exponentially and their acceptance broadens as government oversight is welcomed into the model.
Currencies interact smoothly, efficiently, faster, and with fewer choke-points and fees than traditional or legacy currencies.
Vulnerabilities in the cryptocurrency market are still present and obvious. We have already addressed volatility. So let’s touch on confidentiality; there is none. Wannabe internet pirates that want to avoid taxes, ignore tariffs, and game the system are not in this part of this internet. They are deeper, darker, and much less fluid in their transactions. The US IRS and SEC have been making inroads to the DCEs, and their presence is welcomed by these service providers. Their involvement and oversight is what will continue to bring the cryptocurrencies into the mainstream and provide the confidence for mass adoption. The ledgers are not exactly public, but they are definitely not private, nor protected. If you want to stay anonymous, keep your eyes on Monero.
If you are interested in learning more about how Executionists can consult with your business, and help you add crypto currency to your ecommerce website, fill out our inquiry form or give us a call at (424) 245-5472.
This article was written by our very talented, and forward-thinking Tech Director – Johann D.