Why payment through Ethereum is actually simpler than you think?
A majority of crypto currency users may tell you that payment through Ethereum is complicated. It’s partially true, but there are many valid reasons to choose Ethereum for payments such as below:
1. Anyone can generate an identification number for their funds at any time, without having to wait for a bank to approve an account application and present the debit/credit card.
2. Sending a big amount of ETHER overseas will take less time than sending the same amount of money in cash.
3. Paying through Ethereum is highly secure using Smart Contracts. Smart contracts are self-executing contracts and can only move according to rules pre-defined by users or contract authors.
4. Since in smart contracts everything runs on code, the transaction is not intercepted by any unaccounted middleman. The transaction is made as soon as the certain conditions are executed.
5. Ethereum fees are cheaper than Bitcoin fees.
6. Compared to bitcoin, Ethereum has a better established governance procedure for capacity increases. Bitcoin’s block size has been stuck at 1 MB for years and needs support from users to expand, while that of Ethereum grows naturally through an authentic adjustment.
Now, the question is how easy is it for you to initiate payments via Ethereum?
Once you have set up an Ethereum wallet and bought Ether, you can start your transactions any time.
The payment process of Ethereum can be a little confusing for some. Let’s compare with Debit/credit card payments for better understanding. Your Debit card has a unique string of numbers. This numbers allow banks to determine where to send the money when the card is swiped.
In case of cryptocurrencies also, similar identification numbers are generated to identity where to send the funds. Two most important components of this process are Private Key and Public Key. Both the keys are linked together by cryptography and are represented as a scrambled string of numbers and letters.
If you want to send tokens or want people to send you Ether, you need an address (a scrambled string of letters and numbers) which generated from the public key.
The private key comes into picture when you need to spend Ether, this is when you need to sign over the funds using your private key. In this case, the private key acts like a password or the PIN that you enter at the ATM machine to unlock your money.
Cryptocurrency is a field of technology that is still evolving. There are a few Apps, which makes the use of Ethereum easier. One such App is metamask.io . It’s a chrome plugin, intended to make payment through Ethereum a seamless experience for users (especially beginners). So, if you are new to this area, start using Ether instead of cash and you’ll see that payment through Ethereum is indeed simpler than you’ve always thought.
(To know more about Ether, read our article on Medium.)
About Kratos
Our Flagship product KRATOS™ is a decentralized commodities trading platform. KRATOS™ is built on Ethereum and it uses smart contracts to remove the need for unnecessary middlemen and paper documentation, to enhance transparency and efficiency as well as to lower the cost and time involved in the trade process. Currently, in the beta testing phase, KRATOS™ will be released soon.
Email us at contact@triterras.com
