New technologies are coming up constantly. They are changing the way we were using existing ones and reshaping various industries. Blockchain is one such technology that has changed the way many industries work. It has changed the finance industry, the real estate business, and the healthcare industry to name a few.
In this article, let’s see how the partnership of Blockchain with Magento, an eCommerce platform, will take the eCommerce industry to a new level.
We start by taking a closer look at both technologies.
What Is Magento?
Magento is an open-source eCommerce platform built on a PHP framework. It gives a lot of flexibility to eCommerce business owners to grow their business. Magento is hosted on the cloud, through services like AWS, Google Cloud, and Azure.
Magento is increasingly becoming the go-to choice for eCommerce websites. According to research, Magento was the third most migrated-to eCommerce platform in 2020. Let’s take a look at the reasons.
Why Magento Is Preferred?
Magento comes with perks that are beneficial for the long-term success of an online business. Here are some of those benefits.
- Open-source and free: The developers can modify the code to suit their business needs.
- Code libraries: PHP frameworks such as Symphony and Laminas provide libraries for commonly used functions, making it easier during implementation.
- Grows with your business: Magento can maintain over a million products, so it can scale with your business.
Magento was acquired by Adobe in 2018.
Presently, Magento 2, the successor to Magento 1 is 25% faster and smoother. Adobe has ended support for Magento 1 in June 2020 and recommended its users migrate.
Now, let’s take a look at cryptocurrency.
What Is Cryptocurrency?
Cryptocurrency is a decentralized digital currency that exists online. It is built on blockchain technology and uses cryptography to secure itself. It is not reliant on any centralized financial body.
Bitcoin and Ethereum are the two most commonly used cryptocurrencies. To store and transfer cryptocurrencies, you can choose from the best bitcoin wallets. These wallets provide backup, security features to maintain complete control over your seed keys.
Is cryptocurrency better than fiat currency?
Yes, in multiple ways.
- Government authorities don’t decide the rules.
- Transactions on the blockchain are virtually impossible to hack.
- Low transaction fees.
- Cryptocurrencies cannot be duplicated as they have unique digital signatures.
- They can be used just about everywhere.
The last point brings us to the importance of Magento and Blockchain’s integration.
Importance Of Magento And Blockchain Partnership
So far, we have concluded two distinct points.
- Magento is an open-source framework for eCommerce websites. It is becoming increasingly common.
- Blockchain is a secure technology that facilitates the storage, transfer, and exchange of cryptocurrency.
What does the unification of both technologies mean?
It means that products from Magento-based eCommerce websites can be bought with cryptocurrency. This is an application of blockchain technology in the eCommerce industry.
It comes with the following benefits.
- Secure eCommerce payments: Data breaches are becoming common. For instance, Adidas had a data breach where unauthorized parties had gained access to customer data. Magento 2’s advanced security measures secure eCommerce site data from hackers.
- Better shopping experience: Mobile-friendliness, increased security, and advanced SEO features set Magento 2 apart from the rest. This, combined with blockchain’s security and convenience, cumulatively gives customers a world-class user experience.
- Faster business growth: Magento 2 is faster and more scalable. It can process 135k more orders per hour as compared to Magento 1. Combined with a decentralized data storing ledger, businesses can grow quite fast.
- Reduced costs: Blockchain saves business money in two ways. One, by decreasing storage costs, and two, by reducing money transfer fees. Magento 2 is open source and has code libraries for common functions, saving development costs.
- Economical for customers: Lower costs for businesses mean lower costs for customers. This will either increase sales volume or frequency, or both.
The above advantages of Magento and Blockchain make eCommerce shopping a great experience for shoppers. They also make eCommerce a lucrative business for investors.
This brings us to the next question.
How Can I Accept Cryptocurrency for My Magento eCommerce Store?
Many companies have created plugins that serve as a secured gateway. This gateway connects the blockchain on which cryptocurrency exists and the Magento payment portal. Customers can pay with various cryptocurrencies including Bitcoin and Ethereum.
Most of these payment plugins have the following features.
- Allow payment through major cryptocurrencies.
- Free API support, in case your development team gets stuck.
- Zero transaction fees. You will only be paying money for the product or service.
- Direct conversion to fiat currency.
- Detailed records of transactions to ensure full transparency.
Here are three great examples of such plugins that serve as gateways. We have highlighted some of the unique features that will help you distinguish between them easily.
- ShapeShift: It is free and open-source. It requires no registration and login to use it. What makes it better is you will not need multiple crypto wallets as you can monitor them here.
- Coinremitter: Trusted by 25k merchants all over the globe. You will need to log in but there is no need for IDs or KYC. It reduces paperwork as there is no need for PCI compliance because transactions take place through its API.
- CoinPayments: It can be integrated with PayPal and enables direct withdrawal from banks. It has its own cryptocurrency wallet for Magento 2 websites as well.
This flawless and simple integration of these two technologies has changed the eCommerce industry forever. However, you might be wondering if there are more potential applications of Magento and Blockchain.
Let’s take a look at that.
Potential Applications Of Magento And Blockchain Integration
With the implementation of crypto payments with Magento-based eCommerce websites, we have just scratched the surface. In fact, there is a lot of potential for both of these technologies. Below we have highlighted the major areas where it can be implemented.
- Operations and supply chain: eCommerce is dependent on supply chain, logistics, and operations. Magento 2 developers constantly work to integrate the processes better. With the integration of blockchain, communication between different entities will be streamlined. Here is one way it can happen. Data is append-only on the blockchain and is stored in nodes. These data points are accessible by everyone who has access to the system. This will make historical data accessible to everyone and reduce interdependency.
- Efficient handling of Big Data: Magento framework is responsible for handling huge volumes of data. This data is analyzed and processed for multiple purposes. Implementing blockchain will make the system more reliable and efficient. The append-only and decentralized features of the blockchain ensure the security of data. As it will be on a distributed system, it cannot be contaminated or adulterated.
- Economical eCommerce ecosystem: The scalability of Magento has already helped eCommerce websites reduce their costs. Adding blockchain to the mix will help business owners cut even more costs.
It is only obvious that eCommerce websites will embrace both Magento and Blockchain, considering their advantages and growth. Furthermore, new technological tools are constantly being found that can help businesses thrive even more.
We hope that this article has provided you with valuable insights into the combined applications of Magento and Blockchain.