The use of cryptocurrency to make purchases across popular retail platforms has gained traction in the last few years with many merchants from sectors such as clothing to travel and others now accepting various cryptocurrencies in exchange for their goods.
By far the most popular payment options is Bitcoin as it is the most popular cryptocurrency but others are quickly catching on and also gaining just as much popularity and one of these is ethereum. Ethereum is already accepted by a number of merchants worldwide it seems that it will soon be able to be used to make purchases on Amazon as two blockchain startups are teaming up to make this a possibility.
The two firms in question are CLIC technology, a crypto payments firm as well as Opporty, a B2B platform and they announced on June 14, 2019, that they are working to develop and app-like browser extension to allow those shopping on Amazon to pay for their items with ether and essentially bypass the usual Amazon policy of not accepting cryptocurrency.
Details And Implications
The project in question will be based on plasma cash, which is a technology that had been spoken of in March 2018 by Vitalik Buterin, the co-founder of ethereum. The will be implementing this concept as a payment scaling solution that has similarities to the Bitcoin lightning network and according to the press release, it will bring a modern-day cryptocurrency economy a step closer to becoming a reality.
The reason this is needed is that traditional ethereum-based platforms do not have the capacity to handle the number of transactions that will be needed. On average, an ethereum based platform is created to handle about 20 transactions per second which are not compatible for a functioning financial ecosystem especially compared to Amazon who processes roughly 300 transactions per second which will make it harder to implement cryptocurrency. Using the new plasma cash project, the technology can be used to accelerate transaction speeds while reducing loads on the system as such higher transaction numbers can be recorded by second and could potentially exceed those of Visa and Mastercard.
“Bringing cryptocurrency to the e-commerce marketplace is the merging of two next-generation industries,”
said CLIC Technology CEO Roman Bond.
“We're excited to be working on this project with Opporty, and to move forward on a number of other ambitious projects with them as well.”
The companies intend to create payment platforms not only for ethereum but for tokens that are based on ERC-20 or ERC-721 which opens a new world of possibilities for consumers to use digital currency e-commerce platforms.
This is an important move because e-commerce platforms are an essential part of modern life and them beginning to accept cryptocurrency-based payments means that adoption can easily be achieved especially considering the Amazon is a giant in the e-commerce market and allowing cryptocurrency to be used as payment will further benefit crypto users as a whole.
Needless to say, this project is a highly anticipated not only for the convenience that it will afford customers but also because of what it could mean for mainstream adoption should this be applied for other large sites beyond just Amazon.