Cryptocurrency has come a long way since its inception in 2009 by Satoshi Nakamoto. At that time, global economies were trying to recover from a widespread financial crisis that took place between 2007 and 2008.
Cryptocurrency is a digital asset that was created as an alternative currency (therefore, also called altcoins) that people can use to have more control over their money. This is possible since the blockchain technology that it uses is decentralized, which means that crypto is not controlled by banks, companies, or governments, but by users of crypto exchanges themselves.
Today, companies are utilizing cryptocurrencies as a digital payment method. In this method, people can use crypto instead of fiat money or the standard cash to pay for their purchases.
You’ll need a digital wallet, which is a computer program or software that lets you receive or send cryptocurrency. Depending on the digital wallet you choose, you can transact with either a single currency or multiple currencies. Digital wallets are fitted with security features like public and private keys, as well as two-factor authentication, so no one else can access them.
There are several ways that your startup can benefit when you adopt the cryptocurrency payment system.
In traditional online payment facilities (Apple Pay, Facebook Pay, Google Pay, PayPal, and the like), you need to pay a certain amount to banks or any third-party service provider from them to process the transaction on your behalf.
Since a regulatory authority does not control cryptocurrencies, no one is going to charge you with transaction fees. As a result, you’re able to bring down your operational costs by a significant margin.
At the same time, the turnaround time for transactions is shorter compared to regular bank transfers because all transactions are being conducted within the blockchain network, without the need for an outsider to review or approve the transactions. This means you can receive or verify payments made to your company more quickly.
Whenever customers use credit cards or mobile wallets, their transaction data passes through a server, which is where things could go wrong. For instance, scammers or hackers can intercept that data and use it to make illegal transactions. It will then take a lot of explaining to customers why the fraudulent transactions happened under your watch.
By contrast, cryptocurrency systems are encrypted to keep transactions secure. Before a transaction is made, all relevant details—who’s initiating the transaction, when it is initiated, and what the deliverables are—are recorded in the block.
Those in the blockchain will be able to see the pending transaction and validate if there’s no instance of double payment or of someone using the same cryptocurrency more than once.
After this validation, the transactional data is saved in the blockchain. Because of the way that cryptocurrency systems are designed, there is no way for hackers to break into the network since they’ll have to bypass every single block in the chain.
Many customers prefer to pay digitally, including cryptocurrencies, because it is convenient. By accepting payment in crypto, you’re giving customers a payment option that meets their requirements. This is certainly a plus point—positioning your startup as a forward-thinking brand, which is what modern-day customers love most about business.
It’s not uncommon for workers in startup companies to receive their salaries in cryptocurrency. You, too, can explore this trend, which may be appealing to employees, especially if they’re crypto users themselves. They can use their coins to pay for goods and services from the growing list of companies that accepts digital money.
Buying coffee, flight tickets, or making in-app purchases are made a lot easier.
Every startup dreams of expanding someday. To make this goal happen for you, you need to fill a huge demand that will help you get a significant share of the market. Through cryptocurrency, you can cater to a growing base of crypto owners and investors. By breaking into this market, it won’t be impossible for you to become an industry leader and attract even more customers.
With these benefits, going digital with cryptocurrency may be a smart move for your company. Watch out for trends in the crypto market, too, as its growing adoption means that the industry will continue to evolve to serve small businesses like yours better.
Ed Drake is a technology enthusiast and an avid fan of online gaming. When he is not writing about blockchain and Bitcoin, he plays video games, be it on the PC he built piece by piece or one of his many gaming consoles.
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