Taking payments in Ethereum has many benefits for both users and entrepreneurs.
The transition to a blockchain-based ecosystem brings many advantages to the users as well as the entrepreneurs. Here’s a drop-down description of why accepting payments in Ethereum works well for an enterprise’s customers:
additional payment options
In a world that is rapidly adopting cryptocurrencies, providing customers with an additional payment option gives businesses an advantage over their competitors. The cryptocurrency gateway enables merchants to accept digital payments and receive amounts in fiat.
transparency
A decentralized ecosystem is inherently transparent, giving customers more trust when they make purchases. Crypto transactions are executed on a blockchain where they are written irreversibly without the prejudice of a centralized authority.
less fraud
Ethereum transactions in such purchases are made through a smart contract, thereby reducing the chances of fraudulent activities. When smart contracts are audited, the chances of scammers being successful are negligible.
quick transaction
Global transactions in Ethereum are much faster than traditional international payments. Crypto transactions get executed within minutes, while fiat transactions done through banks may take a few days to reflect in the account.
Enterprises also have strong reasons to start accepting ETH.
final position
Finality refers to the state of a transaction when it is part of a block that cannot change. In Ethereum, traditionally operating on a proof-of-work (PoW) consensus algorithm, the average time to finalization is six minutes (25 confirmations), while the average time to mine a block is 15 seconds.
This is significantly less than Bitcoin (BTC), the largest cryptocurrency, which takes 60 minutes (six confirmations) to finalize with an average time of 10 seconds to mine a block. When the merge (implementation of Ethereum’s consensus layer) is completed, the time taken to finalize ETH transactions will be further reduced.
data coordination
Ethereum has a decentralized architecture designed to allocate information and trust without bias, eliminating the need for a central entity to coordinate data. The decentralized system seamlessly manages the system and processes transactions.
incentive layer
The ecosystem facilitates the development of mechanisms that reward supporting activities such as verification and availability, while penalizing activities that negatively affect the blockchain and the surrounding system. Incentives to promote honest behavior help meet safety requirements.
tokenization
Any asset registered in digital format can be tokenized on Ethereum. Tokenization helps to divest previously cumbersome assets such as real estate, which had become too expensive and exposes new economic models such as crowdsourced data management.
decentralized domain
Traders who have no prior exposure to crypto assets may find it overwhelming to send and receive cryptocurrencies. Crypto wallet addresses are a long string of digits and letters. Furthermore, each cryptocurrency payment requires a separate address to be collected.
Thanks to the Ethereum Name Service (ENS), users can create a universal alias for all their public addresses. Instead of using an unreadable array of keys to receive crypto payments, they can have a single ENS domain, such as ‘Joseph.eth’.