Last Updated on November 7, 2023 by Hina Rubab
A secure payment gateway is one of the biggest concerns for all eCommerce portals. Currently, Secure Socket Layer (SSL) certification is an ongoing trend to safeguard the communication between seller and customer by encrypting account details, login card details and passwords etc. However, SSL is not completely secure from cyber attacks. Hackers can find various loopholes from the client’s end or server’s end to steal sensitive customer data including account details.
The only solution to this issue in current times is going with the option of blockchain. Blockchain is a digital ledger that doesn’t only meant for managing cryptocurrency but also safeguarding data from vulnerabilities. You can find payment gateway service providers utilising blockchain for secure payments and data storage. Blockchain is basically a decentralized concept that ensures the utmost security. Let’s understand in detail why a decentralised gateway for payments is necessary for an eCommerce portal.
What is a decentralised payment gateway?
The main reason for replacing the secure socket layer with blockchain is its decentralized gateway. Whatever you enter through the ledger book of blockchain directly secured with 256 bits of encryption. Blockchain works on the decentralization concept that means distributing data on multiple networks Southern depending on a centralised unit. It reduces the cybersecurity threats to a large extent. Initially, it was assumed as a digital ledger for cryptocurrency transactions but later we realised its importance for various business activities including data management and Secure transactions for E-Commerce portals also. Blockchain stores data information about transactions in encrypted blocks that are nearly impossible to hack. The stored information is secured with a unique hash value code. Scroll long to understand its benefits for eCommerce businesses.
Significance of Decentralised Payment Gateways for E-commerce Portals
- Safest transaction gateway
The primary objective of adopting the blockchain system in the payment gateway is securing it with the maximum possible encryption levels. We already know that the secure socket layer is no more secure enough to rely upon. Blockchain, on the other hand, reduces fraud by providing peer to peer technology. hacking into a distributed ledger technology is extremely expensive as well as unreliable. The hacker simultaneously infiltrates the majority of nodes but they are decentralised throughout the world.
Although blockchain is the most secure mode of digital transactions, still anyone connected to the network of a particular chain can view the information. The problem is with its modification. Once the information is entered, it is visible to the connected blockchain network but cannot be altered. Hence, every system connected to that blockchain network is capable of tracking and monitoring. Even a slight attempt of alteration will be notified to everyone.
- Fastest transaction
The conventional modes of payment are much slower than a decentralized e-commerce payment gateway. Usually, an international transaction takes around 2-3 days to complete. With a decentralized payment gateway, you don’t need the approval of any centralized third party like a bank or digital wallet for processing the amount. It just takes a few seconds or minutes to transfer any amount in cryptocurrency throughout the continents.
As we mentioned above, the decentralized modes of payment are free from the interference of any third party. It means you don’t have to pay hefty transaction charges while doing international transactions. In a decentralized blockchain payment gateway, the transaction cost depends on its data size and currently available network conditions rather than the total amount.
- Customer identity production
Privacy protection is one of the biggest advantages in a decentralized payment gateway. Blockchain protects the identity of both parties including IP address, data and user name.
A lot of possibilities in the decentralised network are yet to reveal. We will witness various other benefits from the perspective of cybersecurity in the nearer future.