A multi cryptocurrency payment gateway is a fragmented platform which enables the sending and receiving of payments in different cryptocurrencies. A multi cryptocurrency payment gateway serves to create a more direct payment method by removing all middlemen. As crypto in cryptocurrency suggests, it seeks to make an online payment is safer by use of a blockchain system. A blockchain system is simply a form of a ledger. Moreover, the system facilitates global transactions in more than one cryptocurrency. For purposes of efficiency, transparency, and automation, the gateway employs the use of smart contracts; software programs that act as an actual contract. The programmer tracks the whole process, from the establishment of the agreement till the payment, after which it is made available as an audit tool. This added security gives all stakeholders peace of mind and adds trust which makes them more likely to use such kind of a payment platform.
Why is conventional payment gateways better?
Where international transactions are concerned, conventional payment gateways come with a lot of hazards and limitations. A conventional user has to switch currencies, some decentralized payment gateways accept more than 500 different types of cryptocurrencies to suit the situation, thus easing the process. Its decentralized nature also means that there is no human interaction. This means that the likelihood of events like altering of figures and clerical errors is little to none. Another tribute to its transparency is that there will be no more frozen accounts due to hidden terms.
What makes Blockchain based payment gateway advisable?
A blockchain based payment system creates a similar platform for use by anyone, anywhere. No region or person needs a different application to make use it. This gives freedom over when, how and where the user can carry out payments.
The automated smart contracts have terms that were already set prior. This reduces the need for hiring counsel every time and in turn, transactions are made faster. In 15 to 20 seconds, parties can confirm completion of payments, more than 100 times faster than the traditional methods.
It doesn’t necessarily have to be payments only, although some platforms do focus solely on payments. Some platforms provide more extensive services. EROSCOIN, for example, goes ahead to give you a whole ecosystem.
More use of Blockchain based platforms
Other than smart contracts, there are also other applications in the blockchain system. By use of text messages, users can send payments to each other via the In-chat system. It essentially is discussing business while chatting. When the counterparty, be it a friend or just a business, approves the request, a smart contract ensures it is valid, and the money is delivered to your account. Similar to this is the P2P, peer-to-peer, method. It particularly has reduced costs and can still be in use when looking to transfer small amounts of money around the globe.
With more and more people depending on smartphones and technology, comes the use of mobile wallets. They enable the user to send and receive money instantly to any other smartphone with a valid blockchain address. It gets rid of the need for a bank account. They function the same way for commercial and non-commercial transactions.
Solutions yet to be implemented include order, product and invoice management applications.
This will eventually be the way to go for business owners seeking to run e-commerce companies and firms.