Everything You Need to Know About Blockchain and WordPress
The subject of encryption is nothing new for WordPress developers. In fact, it’s an essential part of any solid WordPress security strategy.
As security, in general, becomes a hotter topic in this digital age, it’s no surprise then that developers would find other uses for encryption technology. But what are your thoughts on blockchain? Does this form of encryption have any place in WordPress? And is it even worth looking into if it really only translates to a few customers a month opting for the cryptocurrency payment method?
With the words “blockchain” and “Bitcoin” on everyone’s lips these days, it’s important that we ask ourselves these questions. After all, if this is where we’re headed in the future, it’s up to you to ensure your clients’ WordPress sites make room for this technology. The problem is, users and businesses alike are reluctant to use blockchain technology in WordPress due to the shakiness of the market (and they have a good reason for it).
So, let’s talk about what we do know about blockchain and WordPress and see if there’s something of value here that you can use.
What is Blockchain Technology?
Let’s break the term down and analyze what it means
Block: The term “block” refers to a digital record or ledger, that stores transactions.
Chain: The “chain” refers to connected links of multiple blocks. Each block is chained to another using a hash function. Every added block contains a “cryptographic hash” of the previous block, a timestamp, and transaction data.
This entire system makes it nearly impossible to alter any data once it’s been added to the ledger.
So, in the simplest of terms, blockchain technology creates a database that can be used for the storage and transmission of digital information. The blocks are publicly available in a decentralized form, and the data/transactions are distributed across multiple computers or nodes.
Though all the transactions that take place on a blockchain are available publicly, they are fully encrypted. Anyone can see a transaction that has taken place over the network but not the data of the transaction. The encryption keeps the details of the transaction private.
Applications of blockchain technology
When you hear the word “blockchain”, the first thing many people think about is Bitcoin. But there’s much more that can be done with this encryption technology than just payment processing capabilities.
Money Transfer
Blockchain technology facilitates secure, trusted, and fast transactions without the need for any intermediate parties.
Traditional money transactions involve payment gateway, exchange mode, or other intermediaries that increase the overall transaction time and they charge for their service. But, blockchain technology completely eliminates the need for such intermediaries and makes all money transactions secure, transparent, and hassle-free.
NFTs
NFTs represent unique non-fungible digital assets that are created on blockchain technology. They are a form of monetizing digital creations.
The creation of an NFT involves creating a digital asset, such as an image or video, and then linking it to a unique token ID on a blockchain through a smart contract. This creates a digital certificate of ownership that can be transferred and traded like any other asset, with the blockchain providing a transparent and immutable record of all transactions.
IoT
IoT leverages blockchain to create smart devices that can operate and function in an autonomous fashion. The decentralized nature of blockchain helps in creating cost-effective and scalable IoT infrastructure.
The time to validate data in IoT is minimized by using blockchain. This improves the overall performance and fastens the IoT data exchange.
Identity Verification
With the power of blockchain technology, any information can easily be traced, audited, and verified in a matter of seconds. Also, this allows only restricted access to the data without exposing them to third parties making them tamperproof and secure
Logistics
Blockchain technology can be used to create a transparent supply chain, allowing companies to track the movement of goods from the point of origin to the destination. This can help to increase transparency and reduce the risk of fraud.
It reduces the errors involved in the logistics field and it improves delivery time ensuring the products are shipped in a secure way, creating greater trust and credibility.
Now that we know what blockchain technology is and its applications, let’s talk about how it can be beneficial to WordPress and web development in general.
How blockchain benefits Web development?
Blockchain is known for its reliability and security. It can revolutionize and transform various industries including web development. Incorporating blockchain into WordPress enhances the functionality of WordPress and expands its scope.
Integrating blockchain technology into web technology brings many benefits, from improved security and transparency to faster transaction speeds and better privacy protection for users’ data.
Transparency
The primary benefit of blockchain technology in web development, in general, is the increased transparency and accountability that it offers.
The transparent nature of blockchain makes all the transactions visible on the public ledger, eradicating the need for intermediaries like banks or payment processors. This also reduces the overall cost and improves the efficiency involved in online transactions.
This can greatly help the web development and cyber security sector. A transparent system in e-commerce and other payment applications can reduce the risk of fraud.
Security
No matter how much we do to secure websites, they are still vulnerable to attack. Many users still don’t give security the proper attention it deserves.
And for e-commerce websites, in particular, customer data is especially vulnerable to theft, which is why you take special precautions to secure sites that conduct financial transactions within them.
By using blockchain to store user data and transactions, web applications can assure users that their personal information, transactions, and other user data are secure.
Improved User Experience
Web applications built on top of blockchain technology work flawlessly with a quick response time enhancing the overall user experience.
Decentralization
Blockchain technology can be used for creating decentralized applications that operate on distributed networks rather than centralized servers.
Using decentralization instead of just relying on a central server, web applications can store and transmit data across a series or network of nodes, which provides increased resilience, security, and availability. Web applications that are built on decentralization aren’t dependent on any single host like a server. This eliminates the central points of failure.
Micropayments
Micropayments refer to small transactions that involve tiny amounts of money, typically ranging from a few cents to a few dollars. These types of micro-transactions can be difficult to process using traditional payment systems due to the high transaction fees associated with small payments.
But by leveraging the power of blockchain technology, micropayments can be processed quickly and securely, with low transaction fees. So, how does it benefit web developers?
Developers can use micropayments to generate revenue by offering their products or services for a small fee. For example, developers can charge a small fee for downloading an app or accessing premium features.
They can use it for revenue generation, monetizing digital content, and more. With the power of micropayments, developers can create innovative products and services that meet the needs of modern users.
Data Ownership & Privacy
Web applications built on blockchain technology leverage the decentralized nature of blockchain to enhance user security and privacy.
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They store data in an encrypted form that can only be accessed by those with the corresponding decryption key. This protects the ownership of data and helps protect sensitive user data from being accessed by unauthorized parties, thus reducing the risk of data breaches and access to personal information.
WordPress Cryptocurrency Payment Plugins
Although there are a number of cryptocurrency payment tools available online, they’re either missing a direct WordPress or WooCommerce integration or, if they do have one, it’s not very well-reviewed. So, when you want to safely accept blockchain payments in WordPress, you should use one of the WordPress Bitcoin plugins that accept them:
Cryptocurrency Donation Box
The Cryptocurrency Donation Box is a simple yet powerful plugin for accepting donations in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and others on your WordPress website.
With this plugin, you can easily add a donation box to your site using a shortcode or widget. The plugin supports several popular cryptocurrencies and allows you to customize the donation box to match your website’s style.
It provides a secure and easy-to-use interface for users to make their donations. The funds are transferred directly to your cryptocurrency wallet. It also accepts payments from different types of crypto wallets.
NOWPayments
If you want to integrate cryptocurrency payments into your WordPress online store, then the NowPayments WooCommerce plugin is for you. This plugin allows you to accept payments in various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and others on your store.
With just your crypto wallet and an API key, this plugin provides seamless integration with your WooCommerce store, allowing you to set up and manage cryptocurrency payments from your WordPress dashboard.
You can easily customize the checkout experience for customers, and the plugin supports 100+ crypto coins and auto conversion, and it involves no chargeback or banking fee.
CryptoWoo
With the Cryptowoo plugin, you can easily configure your WooCommerce store to accept a wide range of cryptocurrencies like Bitcoin, Ethereum, and many others.
It comes with some unique features like maximum order amount thresholds, refund address collection, optional payment completion, and more. And it is also compatible with WordPress Multisite.
The plugin provides a wide range of customization options, allowing you to tailor the checkout experience to meet the specific needs of your business
Blockonomics
The WordPress Bitcoin payments plugin by Blocknomics offers a faster and easier way to accept Bitcoin payments on your WooCommerce Store.
It accepts Bitcoin as well as Bitcoin cash and all major HD wallets like Trezor, Mycelium, Blockchain.info, and more.
They operate in a fully decentralized manner and all the transactions are instantly sent to your wallet without the involvement of any payment gateway.
The installation and setup are easy and quick and don’t involve any approvals of the API key. The first 20 transactions are free and the rest are charged a minimal 1% payment fee.
MyCryptoCheckout
With the MyCryptoCheckout plugin, you can configure your website to accept cryptocurrency payments quickly and easily
They don’t charge any transaction fees, no KYC, No third-party redirection, or other product restrictions. The plugin will automagically detect unique payments using just a single wallet address. It supports various HD wallets.
It also enables you to connect to exchanges and instantly convert any selected coins to fiat or stablecoins with a click.
It has a simple and user-friendly interface that makes it easy to configure payment settings, monitor payment history, and manage cryptocurrency transactions directly from your WordPress dashboard.
There of course are some challenges that are associated with implementing blockchain technology into existing systems. But it is undeniable that blockchain offers significant advantages over the existing traditional technologies.
Every business should explore ways to leverage this innovative technology to improve their operations and also stay ahead of the competition. The opportunities presented by this revolutionary technology are immense; all you need now is an open mind to make the best use of this technology.
From blogging to block chaining
Blockchain technology might currently seem like a novelty and, to many WordPress developers, like a temporary gimmick you can use to lure in tech-savvy end users.
The fact of the matter is, there are some real benefits to accepting blockchain-driven payments in WordPress. Security–which is always a major concern for us– is the leading reason, of course. Then there’s the fact that there are a number of well-reviewed WordPress plugins that make integrating them quick and painless.
If you’re trying to keep your WordPress site ahead of the curve and you know there is a demand for cryptocurrency payments, think about giving this a shot. You never know where blockchain technology will take us next in WordPress, so it’s always good to get a head start.
Editor’s Note: This post has been updated for accuracy and relevancy. [Originally Published: April 2018/Revised: May 2023]
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Brenda Barron Brenda is a freelance writer from Southern California. She specializes in WordPress, tech, and business and founded WP Theme Roundups. When not writing about all things, she's spending time with her family.