4 min

May 9, 2023

Cryptocurrencies

Cryptocurrencies are increasingly popular payment methods in the e-commerce industry and their reach is growing with the development of the Internet. They enable fast, secure and low-cost transactions, which can attract customers and increase sales for businesses.

Cryptocurrencies enable:

Payments

can be used to make payments for products and services by e-commerce customers. Transactions using cryptocurrencies are fast and cheap, which can attract customers interested in saving time and costs.

Easy access

In contrast to traditional payment methods, such as credit cards or bank transfers, cryptocurrency payments allow easy access to funds around the world, at any time. All you need is a device with internet access and a cryptocurrency wallet.

Security

cryptocurrencies are decentralized, meaning there is no central institution that manages them. This makes them more secure than traditional payment methods, as they are less susceptible to tracking and data interception

International acceptance

cryptocurrencies are internationally accepted, which means they can be used for transactions outside the country. This facilitates international trade and can increase sales for ecommerce entrepreneurs.

No foreign exchange charges

do not require currency conversion, which is often costly and time-consuming. This allows entrepreneurs to save on costs and avoid the confusion of exchange rate differences and fees for banks.

What is a cryptocurrency?

Cryptocurrency is a way to transfer cash in electronic form to the digital world. With it, you can make payments for all sorts of products and services, send money to family or friends, without intermediaries. With the help of a free application, you can be your own bank and manage your funds in any way you want. Unlike traditional online payment gateways, cryptocurrency does not require registration or paying commissions or fees to credit card companies. This is a kind of revolution in the field of finance!

Who was the creator of Bitcoin?

Bitcoin was created by a person or group of people operating under the pseudonym Satoshi Nakamoto. However, the identity of Satoshi Nakamoto remains a mystery and is still unknown. In 2008, Satoshi published a 9-page document detailing how the Bitcoin system works. A few months later, in 2009, a version of the software itself was released.

Blockchain technology

Blockchain technology is a decentralized, digital, public or private ledger that allows transactions to be recorded in a secure and unalterable way. Each block entered into the blockchain contains information about transactions, as well as information about the previous block, thus forming a "chain" of related blocks.

Blockchain enables secure and fast exchange of information and value between different entities, without intermediaries and based on decentralized mechanisms.

Blockchain technology allows transactions to be processed securely, and introducing it into the payment system can increase the security of transactions and increase customer confidence in the online store.

Blockchain in Poland

Poland is one of the countries leading innovation and development in blockchain. In 2019, the Polish government launched the "Blockchain in Poland" program, which aims to encourage companies to use the technology, promote the solution and attract blockchain investors. In addition, there are several blockchain companies operating in Poland, including Ambrosus and BitBay. Poland is also a member of the European Blockchain Partnership, which ensures that it operates under the general standards and rules related to blockchain.

The main advantages and disadvantages of using blockchain in e-commerce.

Without a doubt, blockchain can offer a lot in the field of e-commerce. It brings e-commerce to a whole new level of customer service. The technology has many advantages, including in the context of its use in e-commerce the most important are:

  • Increased security of processing and storage of sensitive data, including personal data

  • Reducing the risk of fraudulent transactions

  • The ability of the seller and buyer to control the transaction process without the ability of third parties to change it

  • Reduction of sales costs - no need for separate systems to manage inventory, deliveries and sales by online sellers

  • No commissions on cryptocurrency payments for banks and payment organizations

  • Possibility of anonymity, i.e. the ability for the customer to purchase anonymously or almost anonymously

  • Faster execution of transactions

  • Ability to automate business processes

  • No restrictions on making payments, including cross-border payments

  • The ability to create personalized offers of goods and services thanks to information stored in blockchain.

Blockchain technology not only has many advantages, but also has some disadvantages. First of all, in its current form, blockchain is a complex technology, which means that there is a shortage of specialists to work with it. Applications based on this technology are still quite expensive to implement and maintain.

The world of cryptocurrencies and blockchain is also facing public resistance through conflicting opinions that reach the public. On the one hand, there is talk of, among other things, the risk of losing funds if the user loses his private key, tracking and storage of data, authenticity.

However, it should be remembered that cryptocurrency wallets are too complex for anyone to understand. The advantages that blockchain offers means that this technology will continue to be developed and used in various industries in our market, not just e-commerce.