There has been a recent boom in the value of cryptocurrencies, with the market topping $2 trillion for the very first time. Companies such as Tesla, Microsoft, and even Starbucks have started to accept cryptocurrencies as payment methods.
This being the case, it has become quite hard to ignore just how much of an impact cryptocurrency can have on the eCommerce industry.
This will not only give retailers a lot more control but offer them protection against fraud.
Cryptocurrencies, all things considered, have not been around for that long of a time, in fact, Bitcoin only released in 2009 for the very first time. However, while it’s a new form of transacting value, it has grown in value tremendously, and since a lot of companies have started to accept it as a payment method, its value has surged.
This being the case, even altcoins, which are these alternative coins, and can be any coin that is not Bitcoin, have also seen a rise in terms of value and real-world use. Ethereum, the world’s second-largest cryptocurrency has also had its value sky-rocket as a result of these changes.
Now, one of the main ways through which eCommerce companies struggle, especially during globalization, is having to adjust their prices as well as currencies in order to accommodate the individual FIAT currencies each country has. Now, FIAT money is essentially this money that the government has issued and uses as a standard. Think along the lines of USD, EUR, or GBP. There are companies out there that provide auto-currency conversions, cryptocurrencies have the power of negating this concern altogether due to the fact that they can be used in every country across the globe without the need to adjust their price, making the global expansion a lot easier.
The way through which blockchain works, or in other words, specifically discussing the Proof-of-Work (PoW) consensus mechanism, means that it is completely secure, fast, and easy in terms of widespread adoption. This means that miners need to solve cryptographic puzzles in order to verify the data, after which the newly generated data is made into a block, and added to the chain. Thus, you get a blockchain. This process is irreversible, so you cannot really go back and modify a single block of data, as the blockchain will reject it. This is due to the fact that each miner, or node, has access to the entire blockchain at all times, and if over 51% of the nodes notice something is not legitimate, it is cut off completely.
This will not only give retailers a lot more control but offer them protection against fraud. There’s no central authority that could withdraw the funds from their account without consent as well, and the encryption technology which is used by most cryptocurrencies offers a great level of security when it comes to buyer’s data.
Keep in mind that cryptocurrency is also processed immediately, giving the retailer instant access to these funds. This streamlines the cash flow and is beneficial for expansion plans.
Pros of Cryptocurrencies in eCommerce include:
- A broader Market Range
- Faster Transactions
- Lower Fees
- A Higher Level of Security
How VersaCoin Helps
VersaCoin is one of these Proof of Work (PoW) cryptocurrencies, and it is specifically developed, from the ground up, to be fully secure, fast, and ideal for widespread adoption in eCommerce. This is due to the fact that it incorporates unique features that can ensure blockchain integrity and eliminate any work-around to address the capacity.
It has blocks that are 32MB in size, and these confirm every two minutes. This means that it actually offers one of the greatest transaction throughputs of any cryptocurrency network available today. This means that, unlike traditional bank payments, which need 24 hours to a few days to fully process, through VersaCoin and its blockchain, you can process each payment in minutes. This gives eCommerce companies a lot of flexibility, as they know that they cannot get scammed, compromised and that the flow of cash will be quick and efficient.