Blockchain and PayPal are familiar words in the cryptocurrency world. PayPal provides its users with the ability to create online financial accounts. They (users) can then send and receive money from and to anywhere in the world.
PayPal is commonly known and used by freelance writers, clients, and online vendors like E-bay. You must create an account to use PayPal and you must link either your bank account or a credit or debit card to your account in order to accept a payment from a client.
Blockchain is a method of making payments online and securing financial transactions online. Read this article to learn more about blockchain technology and PayPal integration.
The basics of blockchain technology
Businesses and entities love blockchain technology because it is decentralized. This means your customers’ vital and confidential information is located in pieces on different computers and computing devices throughout your network. This makes it impossible for would-be hackers to access your more sensitive information by hacking into one computer. It also makes hacking almost impossible to do since the hackers would need to guess the computers in which the information they want is on and guess what the passwords to those computers were.
At least two parties are involved
The fact that at least two parties are involved in transactions involving blockchain technology makes it peer-to-peer. However, unlike as is the case with traditional peer-to-peer transactions, there is no fee involved when money changes hands. For example, if you were to go to Home Depot to buy some mulch for your garden and you paid with your credit card, you would be transferring funds from your bank to your VISA credit card who would then transfer those funds to Home Depot’s account. You would be paying hefty fees of up to 4% every time the funds exchanged hands. That would make your final bill much higher than it would be if you had used blockchain technology.
The best part about blockchain transactions is that one party can create a unique invoice that can be sent to the party receiving the funds which that party can cross-check for verification.
The parties can be transparent but anonymous
You have the choice of anonymity either by not disclosing your details or by providing a pseudo name and still be transparent with blockchain technology.
Records are permanent
Once a record is created on a database using blockchain technology, it is permanent. So if you buy a ring on eBay and pay through PayPal, you are using blockchain technology. Your vital information will be kept confidential and will be linked to other purchases you may have previously made through PayPal and eBay. Programmers created certain methods and formulas that are capable of recognizing, recording, and remembering the various transactions that eBay’s many customers would make when they linked it to Paypal. Another potentially scary truth of blockchain technology is that it is visible to anyone who has access to the network. This means that PayPal customer service reps can see your entire transaction and purchase history when they log into your account.
The fact that many parties can see transactions made with blockchain technology means that changes to the system require authorization from many independent parties partly because of its decentralized nature, and partly because of its permanent nature. While it doesn’t totally eliminate it, it makes it far less likely that a network will get hacked into and fraudulent activities will take place as a result.
Each transaction that occurs in blockchain technology includes a set of directions that dictate exactly how that transaction is to take place and be governed. That set of directions can be thought of as a ‘smart contract!’ For example, the terms of the smart contract could stipulate that the underlying funds can be released only when a certain number of people agree.
Blockchain technology marries PayPal
While it may seem odd that two types of financial services can get married, it happens all of the time in the form of integration. In this case, NetCents, a blockchain technology payments solution integrated with the PayPal platform in 2016. PayPal was a great choice for NetCents integration because NetCents was built with the intention of making blockchain technology integration seamless and easy for online payment platforms like PayPal and Paytm. This, in turn, has increased the customer base for both NetCents and online payment platforms by making it easier for them (the customers) to make online payments.
NetCents has been successful in realizing the goals of its two-year-long program of growing by developing the software and hardware infrastructure needed to accept and process fintech based payments. The company has also experienced great success in making technologies for accepting, sending, and processing electronic payments for customers and vendors easier.
NetCents has found itself going through 12 different product and technology upgrades during this time period. This was necessary to make it fully able to deal with the full ramifications of cryptocurrency and blockchain technology. Some of its current capabilities include the ability to accept payments from multiple points of service (PayPal and eBay need these capabilities), integration with e-commerce websites that take use plugins like WooCommerce, deploy Software as a Service (Saas), among other capabilities!
Blockchain is the future
Blockchain and its associated technologies are the future of payments and money transactions. The recent adoption of these types of technologies by major payment acceptance and processing services like PayPal is evidence of this!