You’ve probably read a lot about cryptocurrencies to learn more about how they can help your business and more often than not these articles are filled with terms that you are not too familiar with. Sometimes when you search for these words, the definitions still don’t help with your understanding of the topic. Well, we’re here to give a little help in this and we’ve listed down the top 10 crypto terms that you need to know in relation to eCommerce businesses.
Fiat or fiat currencies are basically the currencies that are issued by governments and are basically mediums of exchange and established as money. Well-known examples of fiat currencies are the US Dollar, EURO, and Japanese Yen.
Smart contracts are digitalised contracts that are executed on the blockchain between different parties. It is basically a set of computer codes that enforces a specific set of rules to work as a digital agreement and is replicated and executed by network nodes. These smart contracts which are on the blockchain allow for the creation of trustless protocols. This means two parties can make commitments without having to trust each other since the contract will not be executed if the conditions are not fulfilled. Payment gateways such as Paywong use smart contracts to transact payments efficiently without the need for intermediaries, allowing for lower costs that are transferred to the merchants.
Non-Custodial Payment Gateway
A non-custodial payment gateway, such as Paywong, is a platform that allows merchants to accept payments in cryptocurrency from their customers without holding onto the funds themselves. Instead of holding onto the funds, the payment gateway facilitates the transfer of the funds directly from the customer’s wallet to the merchant’s wallet.
This type of payment gateway differs from a custodial payment gateway, which holds onto the funds on behalf of the merchant until they are ready to be transferred to the merchant’s wallet. Non-custodial payment gateways provide an additional layer of security for merchants, as they do not have to worry about the funds being held by a third party and potentially being lost or stolen.
A blockchain network is basically a decentralised system of devices that are connected via the internet and work together to create and validate a ledger of transactions within the network. It is important to know about networks and which to choose when deciding which cryptocurrencies you would like your customers to pay in, as this would affect the amount of gas fees that you could incur when making transactions. One of the largest public blockchain networks is Ethereum, of which many of the well-known cryptocurrencies are on, such as USDT, USDC, BNB and Binance USD.
A crypto address is a unique identifier that is used to send and receive transactions on the blockchain. It is similar to a bank account number, but it is not tied to any personal information. You can create an address without needing a third party and can freely share your public address with others in order for people to be able to send cryptocurrencies to your address.
A public key is a cryptographic key that is used to create an address and consists of a long string of letters and numbers that is derived from a private key. The public key is used to create a digital signature for transactions, which allows the network to verify that the transaction is legitimate and has not been tampered with.
A private key, on the other hand, is a secret piece of data that allows you to access and spend your cryptocurrency. It is used to prove ownership of a specific address on the blockchain, which is where your cryptocurrency is stored. The private key is kept secret and should never be shared with anyone, as it allows anyone who has it to access and spend your cryptocurrency.
A crypto wallet is essentially a software program that stores private and public keys and interacts with various blockchains to enable users to send and receive digital currency and monitor their balance. If you want to use cryptocurrencies, you will need to have a crypto wallet. A crypto wallet can be a physical device, a mobile app, or a website that manages your private keys for you. Here is a blog post on how crypto wallets work and the features of the different types of wallets available.
Plugins are software additions that add new functions to the main program without altering the main program itself. These add-ons work inside the main program and complement the functionalities of the main program. For example, Paywong has plugins for most of the large e-commerce platforms such as WooCommerce and Shopify to easily integrate a crypto payment gateway into their checkout pages.
This is the fee that is charged by crypto payment gateways for accepting and processing payments in crypto. These fees can range from 0.75% to 2% per transaction depending on which payment gateway is used and is deducted from the sales amount before reaching the merchant. Paywong is currently one of the most cost effective payment gateways in the market, with a fixed fee of 0.75% per transaction.
With Paywong, anyone can accept crypto payments, including stablecoins, from anywhere in the world with low transaction fees, with or without a website. The startup is also working with a third-party off-ramp solution to allow its users to convert crypto to fiat in real time. Paywong is a non-custodial crypto payment gateway which provides merchant services for businesses that cater to all kinds of customers. In addition, Paywong is also useful for individuals who are working as freelancers and want to get paid for their services in crypto via Paywong’s crypto invoicing service.
Paywong has launched a payment gateway with an intuitive dashboard for managing funds, e-commerce integrations, and an invoicing system that generates a payment link that anyone can share. Book a demo to learn more, and you’ll be accepting cryptocurrency as payment from your customers in no time.
About The Company
Paywong is a product of Walawong Solutions Pte Ltd — a Web3 startup based in Singapore. We are on a mission to simplify crypto payments for businesses by leveraging the power of blockchain technology.