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Blockchain Finance Financial Services

Ethereum smart contracts vs. Stellar smart contracts

Ethereum smart contracts vs. Stellar smart contracts is a binary I often have to answer in my consulting work and product design workshops. The answer, of course, is not always so straightforward. What are the pros and cons of each innovative solution and when should you choose one over the other? A lot has to do with the level of decentralization you’d like to achieve and what tradeoffs you’re willing to accept.

TL;DR, Both Ethereum and Stellar are smart contract-enabled blockchains. Ethereum is more decentralized — but slower. Stellar is less decentralized — but faster.

Preliminary explanation

So if you’re considering which blockchain protocol to use, carefully identify your target users’ wants and needs and build your solutions around those.

Smart contracts underpin many of the arguments for the utility of blockchain technology. These computer programs automatically execute specific actions once all the criteria are met.

Public blockchains add a layer of transparency to the type of data moving around. There are many public blockchains nowadays but not all are useful for the same things. At Espeo we primarily work with Ethereum and Stellar ecosystems as guiding public blockchains. Of course, there are others on the market but the specific utility of these two is the main reason for this choice. 

Ethereum is a global, open-source platform for decentralized applications on which you can write code called a smart contract that controls digital value and runs exactly as programmed. Ethereum is the most popular blockchain because of the apps you can write on top of it.

On the other hand, the Stellar blockchain is an open network for storing and moving money. As we can see these two blockchains represent different business values. Ethereum works best for programming smart contracts in business integrations while Stellar facilitates the transfer of funds in a blockchain ecosystem.

Smart contract origins

Legal scholar and cryptographer Nick Szabo invented the smart contract concept which he laid out in a 1996 paper. In it, he defined smart contracts as “a set of promises, specified in digital form, including protocols within which the parties perform on the other promises.”

A smart contract is a self-executing contract made possible by blockchain technologies and enforced by cryptographic coding. 

First, we should know that Stellar blockchain doesn’t have a smart contract as a smart contract language or build in a virtual machine to execute code. A Stellar smart contract is a composition of transactions that are connected and executed using various constraints and is instead optimized for sending, storing and trading value.

Stellar smart contracts

The following are examples of constraints for Stellar smart contracts:

  • Multisignature —  a concept requiring signatures of multiple parties to sign transactions stemming from an account. 
  • Batching / Atomicity — the concept of including multiple operations in one transaction. Atomicity is the guarantee that given a series of operations if one operation fails they all operate if the transaction fails.
  • Sequence —  represented on the Stellar network through sequence number. Using a sequence of numbers in transaction manipulation, it can be guaranteed that specific transactions do not succeed if an alternative transaction is submitted.
  • Time bounds — are limitations on the time period over which a transaction is valid and can be used to represent time in a Stellar smart contract.

Each transaction on the Stellar blockchain is confirmed by a consensus algorithm. The Stellar Consensus Protocol is an evolution of a federated Byzantine agreement.” The FBA protocol has a determined membership list but SCP uses open membership.

Stellar takeaways

Transactions on the Stellar blockchain are faster and the fee for a transaction is cheaper than Ethereum. So, Stellar offers new possibilities for business models. IBM, for example, uses Stellar to facilitate cross-border payments. The project is called IBM Blockchain World Wire and seems to be a very promising project. In Espeo Blockchain we use the Stellar blockchain to create P2P payment applications.   

Ethereum smart contracts

The Ethereum blockchain offers nearly endless possibilities to write smart contracts. We can approach many more uses than another blockchain because we can control our written code.  To write Ethereum-based smart contracts there are a few different programming languages: Solidity, which is like JavaScript and the most popular nowadays and Serpent like Python. 

The question is how and why it works. To understand it that we should know two important and related concepts with Ethereum blockchains like the Ethereum Virtual Machine and gas. 

  • The Ethereum Virtual Machine (EVM) is a place where smart contracts run in Ethereum. It is Turing Complete programing language or we can say that it is a distributed global computer where all smart contracts are executed.
  • Each transaction has a cost measured in gas and each gas unit consumed by a transaction must be paid for in Ether, based on a gas/Ether price which changes dynamically. We should know that in each transaction we have a gas limit parameter that is an upper bound on how much gas we can consume. This parameter is used as a safeguard against programming errors that could deplete an account’s funds.

As we can see we have control over our smart contract. It has both good and bad sides. If we are about to create a decentralized application we have way more possibilities using Ethereum, because it offers more than the Stellar blockchain. On the other hand, if our code has a bug, it can be hacked very easily. As in any other blockchain, each smart contract run on the Ethereum blockchain is confirmed by a consensus algorithm. 

Ethereum takeaways

Ethereum is currently a proof-of-work consensus model. In proof of work, miners lend their computing power and compete against each other to complete transactions on the network and get rewarded in cryptocurrency. unsurprisingly, this is very energy-intensive but this algorithm protects the network against hacking.

Real-world applications

There are many different industries and solutions for these industries. When we want to choose blockchain we should ask which blockchain helps us solve problems and grow our business. These questions we can put in public and private blockchains too.  

Ethereum is the most popular blockchain that uses smart contracts. Ethereum is the best choice where we need to set parameters for the smart contracts. The best applications for the Ethereum blockchain are decentralized finance and asset tokenization.

The second very important thing is the ability to create different ERC tokens based on Ethereum. Many of us can say that Ethereum is slow and it’s true. Although, there are tricks to overcome this. However, we should pay attention that it’s the beginning of this technology and Ethereum core developers are working to improve the protocol.

Ethereum has versatile applications in which it outperforms other blockchains. In the real estate industry, we can tokenize real estate, or art opening these investments up to a larger number of people. We can improve and automate this process of fractional ownership as well. Today we have platforms that use Ethereum smart contracts to change ownership of parts of the building.

You deposit fiat or digital currency money and receive tokens that represent part of the building. It looks like a notary’s contract but is faster, automatic and considerably cheaper. Ethereum has an advantage over other blockchains because it has its own tokens such as ERC20, and ERC721 among others.

Conversely, the Stellar blockchain is quite different blockchain for the other applications. The Stellar blockchain doesn’t have smart contracts based on Turing machines. We have an API where we have a number of endpoints to use. 

Stellar and Ethereum – Conclusion

Developers can’t write our own smart contracts as in Ethereum. It’s not wrong because our work could be faster when we use existing methods. The Stellar blockchain is better for industries where we want to transfer assets like cryptocurrency or tokens generated on the Stellar blockchain. A good example it’s a peer-to-peer mobile payment application or payment gateway using Stellar’s cryptocurrency, Lumens. In Espeo Blockchain, we have started work on a peer-to-peer payment system based on Stellar which is the most appropriate solution for this use case. 

Three main things why: very low fee for transactions than other blockchains, very fast transactions and the ability to create our own token which we can use as our asset in the finance ecosystem.

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Blockchain Public

Blockchain in multi-domain command and control targeting

To effectively plan and accomplish today’s complex military activities in defense of a country’s best interest calls for timely, reliable, trusted, and clear communications across a lengthy chain-of-command covering multi-national forces.

Unlike traditional guard solutions that are accompanied by several drawbacks, such as lack of trusted end-to-end data provenance, blockchain technology can facilitate and accelerate these multi-domain command and control targeting activities by offering reliable, cross-domain virtual identities and policy-based information distribution channels for the target design process.    

The problem: siloed targeting people, processes, systems, and data

Targeting is the process of choosing and ranking targets and assigning the appropriate measures to them. It is often a multi-disciplinary process, calling for collaboration from various joint force staff aspects and mechanisms aided by multiple non-military organizations to:

  • Decide which target to engage
  • Decide the best way to engage them to attain the desired impact within political, technical, and operational limits. 
  • Discover their current hideout with adequate confidence. 
  • Achieve the right effects. 
  • Evaluate the impacts of the engagement. 

data siloing greatly hinders command targeting essential to its different members. These are contributors from different countries, different operational domains (air, space, sea, and cyber), using multiple automated systems running on different networks with distinct classification, authorization levels and security policies trying to produce, distribute, plan, and execute prioritized target information. 

Coalition-based networks and computing power are set up to enable communication between co-located joint targeting squad members. Appropriately categorized information is channeled through these collective infrastructures in a regulated way through traditional cross-domain guards linked to each member’s non-shared national networks.

However, as we discuss in this article concerning cross-domain security, traditional guard methods are affected by numerous downsides, like lack of trusted end-to-end information origin for the information shared. Confidential background information and decision attribution are essential for mission sensitive targeting processes.

The challenge of providing confidential identities for the workforce- person and non-person- interacting across various domains causes lack of trust. Trusted virtual identity is the hub of all verification and approval decisions, and facilitates other integral security operations (non-repudiation, reliability, and encryption).

Traditional centralized public key infrastructure (PKI) methods with their domain-based certification authorities (CA) fail to lend themselves well to cross-domain bridging applications.        

More issues arise from the necessity to guard sensitive identity information across security domains- the subject identifying information contained in CA-generated certificates circulated to top-secret networks can also be classified and hence be shared in other security domains. 

These drawbacks disappoint and limit solid, synchronized targeting information production, collection, and circulation, inhibiting the creation of a confidential joint operational display of a target and restricting situational awareness of the targeting process itself. All these increase the probability of creating sub-standard targeting methods that could make the mission impossible. 

Blockchain-based MDC2 targeting solution

Blockchain technology, coupled with W3C verifiable credentials, offer a trustable solution that is better than siloed multi-domain command and control targeting procedures and participants. Blockchain-based MDC2 targeting solution comprises of three key aspects:

Unclassified multi-domain targeting blockchain consortium

A permissioned, private, random leveling consortium blockchain engaging all contributing security personnel offers a trusted common operational picture (COP) for the targets and situational awareness (SA) of the targeting activity itself. All proposed changes to targets are validated and circulated with the help of this targeting blockchain network. Targeting procedures and strategies, like target selection standards (TSS), are implemented through smart contracts and endorsement programs.   

For instance, a target suggested to be incorporated into the high-payoff list would first be recommended according to the endorsement rule. The recommenders would implement smart contracts with the help of confidential input argument values and requests to systems of record to confirm that the TSS had been fulfilled and create a random ledger transaction read/write set of consent and other uncategorized metadata. The uncategorized information would be dedicated to the targeting consortium blockchain nodes found in each domain to act as an immutable attribution of the policy.  

Classified verifiable credentials and unclassified verifiable presentations

Classified targeting data is confidentially and selectively distributed through digitally signed W3C Verifiable Credentials distributed to every target entity’s virtual identity to affirm its targeting-process assembled traits. A target can be defined as an entity that executes a defined role for the opponent considered for a potential engagement. The MDC2 Targeting procedure gradually creates a logical illustration of a target entity, populating appropriate features using multiple schemes and artifacts. 

These certifiable badges would act as the basis of creating presentations and zero-knowledge proofs (ZKP) to circulate suitably confidential data within and across security domains selectively. For instance, uncategorized certifiable presentations obtained from classified badges affirming high payoff target lists, selection criteria, and the commander’s goals could be distributed to every security domain network. 

Unclassified multi-domain self-sovereign identity network  

A permissioned, public, unstipulated blockchain identity network involves all contributing entities and provides random confidential digital badges and public key enablement (PKE) for all involved parties. Using blockchain-powered self-sovereign identity (SSI, or decentralized PKI), a random W3C Decentralized Identifier (DID) is allocated to each domain, immutably linked to its public key and other uncategorized metadata in its DID document, and circulated through a blockchain network to all identity network nodes found across all involved security entities without the need of third-party CAs.   

Since DID and DID documents are meant to carry only random data, they may be freely spread across all security domains through the blockchain identity network hence offering a mutual all-domain source of trust for digital identity and PKE. DID forms stipulate a DID’s certification and approval methods and also facilitate innovation and collaboration with an entity through its blockchain printed service portals. Service portals found in every network domain act as a means of accessing an entity’s conforming organization of certifiable permits, presentations, and other useful data. 

For instance, a target entity can contain a service portal positioned on both an uncategorized network and a categorized network. Uncategorized information regarding the target can be retrieved from its Uncategorized Service Portal on the uncategorized system. Uncategorized certifiable presentations of a categorized target feature can be shared through the cross-domain guard and accessed on the uncategorized domain through the uncategorized service portal. 

The diagram below shows how a smart contract on the targeting blockchain implements target selection criteria for a suggested target/weapon system arrangement:     

  • A target squad participant hands a transaction suggestion for a target (recognized by its DID) to be considered suitable for a mission using a particular weapon system (recognized by the weapon system’s DID) to approving nodes of the targeting blockchain network. 
  • The targeting blockchain network’s chain-code employs the two DID opinions to question the target’s and the weapon system’s service portals for the specific data necessary to apply the TSS strategy. 
  • The service portals return supportable presentations of mandatory characteristics sharing only the minimum contentions needed by the chain code.
multi-domain command and control targeting
Source: Blockchain Pulse: IBM Blockchain Blog

Not demonstrated in the diagram, the chain-node authenticates the provable presentation signatures using public keys from the identity ledger inputted to the DIDs, utilizes the attribute information to authorize target suitability using the chain node’s business rationality, produces a random ledger read/write set with the determination, and regenerates a signed recommendation. Then, also not illustrated, the signed recommendations are gathered and send to the blockchain orderer for circulation throughout the cross-domain, targeting blockchain nodes for commit.

  • The targeting blockchain network peer nodes give reports upon commit. 
  • After getting a commit report, the target squad member gives a certifiable credential declaring that the target is suitable for attack by that weapon system. The declaration comprises the authorizing blockchain transaction ID and other extra information for thorough provenance. The target domain retains this supportable record plus all other permits that have been dispensed to it, affirming the other attributes. Uncategorized provable presentations of this categorized certifiable credential may be formed and disseminated to uncategorized domain service portals. 

The U.S. Air Force’s senior commander has made multi-domain command and control targeting one of his top priorities. Further reports suggest that now he aspires to see it become the Pentagon’s first development initiative.

How Blockchain technology can be used to coordinate other industries

Blockchain can also be used to co-ordinate the supply chain process in the pharmaceutical industry. All transactions, from the sourcing of drugs to the actual sale can be transparently documented and kept without the likelihood of ex-post information meddling. Once a transaction is initiated, it is kept on the blockchain and is unchangeable. As a result, pharmaceutical firms will be able to prevent human errors, logistical delays, and minimize expenses. 

The technology can also be used to coordinate the energy sector. A confidential blockchain alliance chain offers an energy distributed ledger and energy trading smart contract services. Energy internet comprises of energy resources, energy transmission, energy distribution, energy consumption, energy storage, and other distributed resources, and supports coordinated control and market trading.  

The value of blockchain-powered MDC2 targeting

Blockchain-powered multi-domain command and control targeting can facilitate, speed up, and secure MDC2 targeting operations by offering reliable, trusted identity and permits for all targeting domains throughout their lifecycle. Smart contracts execute targeting strategies on a cross-domain targeting consortium blockchain. This in turn, shares targeting information selectively across domains through certifiable badges and confirmable presentations.  

A distinct cross-domain blockchain identity network acts as a source of trust for digital identities to PKE and all involved members (person and non-person) in the targeting course who issue, keep, present, and authenticate credentials and their presentations without leakage of confidential identifying information. 

When combined, these solution features offer the targeting squad and their supported operation officers with a dependable, provable end-to-end attribution for all target-based data and policy-related resolutions within and across different security domains. This blockchain-powered solution offers cross-domain, cross-national, cross-functional, cross-organizational targeteers and users of targeting intelligence with a confidential joint operational image of each target and its features, precise situational awareness of the targeting process itself, and guaranteed execution of targeting and security strategies. The ultimate result is an enhanced process with more accurate multi-domain command and con trol targeting. 

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Blockchain Healthcare Technology

Integrating blockchain and healthcare through patient portals

Blockchain and healthcare can improve patient wellbeing and overall satisfaction. In my last article, I highlighted a few impediments and solutions to improve patient care satisfaction in the United Arab Emirates. At a macro level, key issues included:

  • Fragmentation of care
  • Interaction with multiple disconnected stakeholders (providers, payers)
  • Fragmentation of medical records
  • An inefficient and incomplete flow of information
  • Approval and scheduling delays

This piece will look beyond fixing the gaps and discuss how leveraging blockchain network technology to engage patients in their own care can radically transform the patient experience.

Every health system grapples with some issues. For example, social healthcare systems might be more cohesive and face less of an ordeal with fragmented care and health records, but they often struggle with process delays and high costs. We need to build implementable healthcare solutions for our existing and unique medical landscape.

Blockchain in healthcare gives more power to patients

We need solutions that put the patient at the centre of various medical processes. Blockchain in healthcare allows this. Patients today are well-informed and want to be part of their treatment decisions. They are more agile with following up on delays and providing health information to payers as required. We need to enable them to manage their journeys and give them online access to their healthcare data to feel connected with their care team.

Blockchain-enabled patient portals can allow for interconnectedness between patients and an array of healthcare stakeholders. While many hospitals and clinics have rolled out patient portals the lack of integration with other players diminishes the value of the tool. Healthcare providers can streamline patient care and can accurately share it as required.

Once again let’s take a walk along the patient journey to briefly see how patient portals could significantly improve patient care and satisfaction in the UAE.

Using blockchain in healthcare – the trigger

Patients begin their journey once they experience symptoms. Instead of engaging in an online search or discussions with friends and family, patients can log in to their portal and undergo a preliminary assessment online. Patients can receive accurate medical guidance, and online access to their health data and understand the seriousness of their symptoms. Electronic triage is a great way to reduce delays in patient presentation and misinformation.

After triage, the patient can use the portal to select the appropriate healthcare professionals — general or specialist as per the guidance provided. Initial consultations and prescriptions can also be provided through video chats once telemedicine providers are integrated into the system.

Most importantly, patient portals integrated with payers thanks to entrusted data exchange possibilities can ensure patients that select care providers are accepted by their policy. This will remove the need for the eligibility check which currently often happens onsite on the day of the patient appointment.

Finally, the portal based on a blockchain system can also assist the patient with recording and managing their healthcare information such as symptoms during the lead-up to their appointment.

Electronic health records – the investigation

Patients arrive at their physician appointment well-informed to have an educated conversation with the physician. The portal based on the blockchain can also allow patients to track their symptoms and note down history along with any other medical information that they’re able to share with the care team. The patient’s medical record can seamlessly capture this information.

Most patients will be requested to undergo diagnostic investigations. Once again, patients are able to select a centre based on their insurance eligibility. Portals can also match patients with diagnostic centres with specific capabilities according to their preferences. For example, the portal can direct a patient who is uncomfortable with confined spaces, toward a diagnostic centre with an open MRI machine. The portal can also provide the patient with preparation for their tests — if and for how long prior they need to fast or if they are undergoing an MRI/CT with contrast, how long will they have to wait before the test, etc.

Patients can receive the investigation results and reports on their portal and grant access to their care team. The care team can review and communicate the appropriate course of action through the portal itself saving precious time in critical cases. For example, if the patient initially visited a general physician and based on the reports, now needs to see a specialist or a surgeon, the primary care doctor can instantly communicate this via the portal itself.

Blockchain solutions in a healthcare organization – the waiting

Patients nervously wait for the diagnosis and treatment plan, after which they nervously wait for insurance approval for their treatment plan. During these periods of waiting, patients often return to online searches and think of many questions. Having the support of their care team can be more calming and informative. Patient portals enabled direct messaging capabilities that can allow for high-level conversations and a feeling of connectedness.

Patient portals will be undoubtedly helpful for a quicker and more efficient insurance approvals process. There are often delays due to incomplete information from physicians, missing investigation reports, and medical coding errors, which when updated on the portal, the patient can raise an alert with their provider and sometimes even correct immediately. Patients can even appeal for denied claims through the portal with the support of their care team and external experts. Patient and provider support teams for insurance-related processes are an interesting market opportunity. Such expert teams if integrated with the portal system can assist in pre-empting denials and informing patients of possible out-of-pocket payments down the line.

Blockchain applications in healthcare – the treatment

Whether inpatient care or pharmaceutical treatment, patient portals can play a critical role in improving the patient experience during this phase. The portal can be integrated with approved medical websites and legitimate sources of information that the patient can access prior to or during treatment. This can not only reduce misinformation but also any self-adjustments to treatment the patient might make.

Patient portals can also integrate with pharmacies to inform the patient about stock availability. Patients can also alert the pharmacy before arrival to reduce delays and ensure they have all the relevant documentation.

Patients can also be notified about alternative treatments according to relevance and affordability. If the patient decides to undergo care abroad, the patient portal can serve as a key channel of communication between international and local care teams.

Patients can also be informed about ongoing clinical trials they might be eligible for. This is not only beneficial for patients but the field of medical research. Lastly, patients can connect with other patients with similar conditions in their community and gain access to other relevant patient support groups and forums.

Applying blockchain solutions to healthcare – the recovery

Post-treatment or the recovery phase is just as critical as the treatment phase — the patient must follow the prescribed regimen. The portals can prompt the patients to ensure adherence to medications, physiotherapy, or follow-up appointments.

Portals can also help track critical symptoms and abnormal changes in vitals. The care team can set these parameters for the patient and can be automatically notified if anything needs attention. Portals can be integrated with wearables to record these metrics as well.

Patients often feel a large disconnect from their care team after their treatment is complete. Patients can stay connected with their care teams through direct messaging or video calls as needed. They can also stay in touch with other patients in treatment or in recovery through forums and support groups.

Blockchain solutions for healthcare – conclusion

Patient engagement is not just helpful for patients but also for the various stakeholders of the health system. Patients who are active participants in their own health care have fewer unplanned readmissions, medical errors, and delays in care. These patients also report having higher confidence in the healthcare system.

In 2019, the Health Intelligence Network administered a Patient Engagement Survey. A total of 56 healthcare companies across the United States responded with encouraging data. 80% of the respondents attributed the improvement in care quality to patient engagement tools. There was a 69% increase in adherence to medication and treatment plans. 22% of the respondents saw a decrease in overall healthcare spending. Some of the effective patient engagement tools and processes included:

  • “Intrinsic coaching.”
  • “Electronic scheduling system linked to a client record.”
  • “Clinical review, patient/caregiver education, clinician’s visits.”
  • “Artificial intelligence to match interventions.”

A truly integrated blockchain and healthcare patient engagement system present numerous advantages beyond reducing fragmentation. For the UAE, it can be a crucial step toward building a stronger public health program. Population health alerts and patient education can be delivered through these portals. People can receive information about a specific disease awareness month or screening camps.

Patient engagement becomes particularly important as global health systems transition from an acute care model to a continuous care model. In such a case, every person effectively becomes a patient. It is not feasible for systems and providers to take care of everyone, we need to empower people to take care of themselves.

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Blockchain Finance Financial Services Software

How to introduce cryptocurrency payments in an online payment gateway

Cryptocurrency payments have become a popular topic in the past few years largely due to the rise of Bitcoin. In 2017, bitcoin reached its all-time high of about $20,000. Unsurprisingly, this invited the attention of investors from across the world. Statista reports that there are nearly 34 million active crypto-wallet users worldwide as of the third quarter of 2019. 

Because of increased awareness and use of digital currencies, many product and service providers are looking to tap into this small, but tech-savvy market. Fees on crypto payments are also often considerably lower than traditional payments processors. Here’s how to offer your customers crypto payments. 

Cryptocurrency payments

Cryptocurrency is a digital form of currency, a medium of the electronic exchange, which uses cryptography to carry safe transactions. First introduced in 2009, the technology runs on blockchain technology that acts as an auditing and clearing tool. In short, this prevents double spending and removes the need for centralized payment processors to verify funds and record transactions. Crypto payments offer immutability and transparency. 

Privacy-minded consumers are especially drawn to cryptocurrency so if you’re trying to entice this consumer segment, consider implementing cryptocurrency payments.

Most popular cryptos

Where the starting point of the cryptocurrency was bitcoin, there are several others to choose as well. Here is the list of most popular cryptocurrencies by market capitalization. Supporting one or more of these will give consumers more choice in how to pay.

  1. Bitcoin
  2. Ethereum (Ether)
  3. Ripple (XRP)
  4. Bitcoin Cash (BCH)
  5. EOS
  6. Cardano (ADA)
  7. Litecoin (LTC)
  8. Stellar (XLM)
  9. IOTA
  10. NEO

Why “big” payment processors don’t support crypto payments 

Big processors do not accept cryptocurrency payments because they charge high fees for carrying transactions. On one level, this makes sense because companies such as Visa have to maintain an enormous auditing apparatus and it costs money to it. On the other hand, they’ve also built monopolies that cater to big business. As a result, small and medium-sized businesses bear the brunt of fees.

KYC procedures for merchants that want to accept crypto

A strict KYC procedure needs to be followed to accept cryptocurrency payments. Often referred to as a complicated process, it requires the essential records and personal details of the merchants. 

Step 1: 

The initial step involves the verification of the mobile number of the applicant. For a bitcoin exchange, you will receive a code on the registered number in the applicant’s name. You will receive a code on the same number, which will be required to complete the identity verification process.

Step 2:

The second step involves providing personal details. A copy of all the personal details needs to be submitted. It depends upon the type of platform being used to carry the transactions, according to which documents for identity verification are asked. Some of the personal documents required include driver’s license, scan of an ID, recent utility bill, birth certificate, or maybe a passport. It does not require any bank mediators as the traditional payment methods do. 

The requirement of documents varies depending upon the kind of transactions or according to the amount you are planning to trade. 

If you think the process requires a lot of hustle, then you can also rope in third parties to do the task for you. Nowadays, various third parties and financial institutions provide the services of a mediator that can help get the merchants to get KYC, hassle-free. 

Processing cryptocurrency payments through the payment gateway

The crypto payment gateways give the merchants the facility to make and accept payments in bitcoins. There are multiple processors currently available in the market available that allow bitcoin transactions. 

With the blockchain platforms, you can immediately receive and make payment and convert it into fiat money in no time. It simply makes the whole process super convenient and swift.

Coinbase

For the best bitcoin global exchange experience, Coinbase is the most trusted name. It boasts of being the largest bitcoin exchange in the U.S.A. Coinbase has a massive user base as it offers some fantastic features to its users. One trusted name for instant cryptocurrency conversion into fiat money. It completes the bitcoin exchange requirement for big and small businesses alike and takes only 2-3 days to clear the transactions. The exchange is free and prompts 1% transaction fees only after the initial $1 million transactions have been carried out. 

Coingate

The best thing about the user-friendly application is that it supports near around 40 cryptocurrencies. With the single application, merchants can single-handedly at a point of time make payments using different currencies and methods. Coingate charges a nominal 1% fee on transactions, which is quite reasonable. 

BitPay

Its presence in the market since 2011 makes it one trusted name in the Bitcoin world. Based out of the U.S., it facilitates accepting bitcoin as payment. The two-factor authentication provided by the app makes it a secure and trusted source to carry transactions. You can make daily transactions worth $1,000 and annual transactions worth $10,000, beyond which it levies 1% transaction fees. The app supports numerous currencies; from the Chinese Yuan, Euro, Pound Sterling, U.S. dollar, and direct bank deposits. 

GoCoin

Loved by the developer globally, it offers basic, straightforward API, which makes the transactions super secure. Various plugins available on GoCoin makes it compatible for use on multiple online shopping platforms. The payout is made in dollars, and they charge a 1% fee on transactions. 

CoinPayment

You search for the low fees crypto payment gateway ends at CoinPayment. It charges only 0.50% transaction fees for accepting 1,270 altcoins. It currently serves around 2,45,000 vendors in more than 180 different countries. You get access to various shopping cart plugins for some of the famous e-commerce stores like Magento, Opencart, Drupal Commerce, Shopify. 

Settlement of crypto transactions 

It usually takes around 10-20 minutes for a Bitcoin transaction to confirm. These scalability challenges still hamper some adoption. However, using a different crypto to accept payments is one option. Some cryptocurrencies take very little time to settle. Stellar on the other hand, takes much less time to clear, somewhere around a few minutes. 

Nearly around 3-5 bank working days, the amount gets reflected in the bank account of a merchant. Unlike the traditional payment options, the cryptocurrency transactions are irreversible.

However, this is not a matter worth worrying as there are mechanisms to help cases with legitimate complaints and refund requests. Thanks to crypto technology, wallets securely store details of the merchant’s wallet on a distributed ledger. In case there is a need, all the transaction records can be scrutinized and viewed publicly. 

Cryptocurrency is the future as it is an increasingly useful option of making transactions and carrying secure businesses and exchange, across the globe.