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May 26, 2022
The Beginners Guide To Crypto, Blockchain & NFTs
The blockchain market is expected to scale up to $23.3 billion by 2023, and the market size of cryptocurrency will go up by $1087.7 million by 2026.
Bitcoin is leading the crypto market with a market cap of over $763 billion, as of writing this in April 2022.
The rise in the popularity of crypto has created a wave of mainstream transactions happening in crypto. Many Bitcoin ATMs have been installed in some places to allow the customers to sell or buy crypto.
These ATMs use QR codes to receive or send tokens to the customers’ digital wallets. The use of crypto is not limited to purchasing digital products like NFTs (Non-Fungible Token) or other crypto coins.
Multiple companies accept top cryptocurrencies like Bitcoin and Ethereum to enable quick and secure transactions with their customers.
The decentralized blockchain network is helping businesses to minimize their dependencies on banks and communicate in a flawless ecosystem with their customers.
Looking at the surge in the use of crypto in online transactions and buying and selling physical goods, we at Weapon Depot wanted to highlight the topic: Can cryptocurrency replace the credit card ecosystem?
This whitepaper focuses on how Weapon Depot will soon switch toward accepting cryptocurrency as a medium of exchange to transform future gun and ammo purchases.
It will provide information about cryptocurrency, whether it is safe to purchase goods and services using cryptocurrency, how a company can start accepting cryptocurrency, and what role Weapon Depot will play at its center.
The whitepaper is well prepared with hours of research and our expertise in the business arena.
We focus on different aspects of cryptocurrency and how it can change the dependency on credit cards and prevent interference of banks or financial institutions in business to customers’ transactions.
What Is Cryptocurrency?
Crypto or Cryptocurrency is fungible digital or virtual currency and an integral part of the decentralized blockchain network transactions. It’s based on blockchain technology, and it does not have any physical embodiment like real-world money.
The transactions made using cryptocurrencies are highly secure because of blockchain technology and cryptography to secure and verify transactions.
The first cryptocurrency created was Bitcoin, and then thousands of cryptocurrencies have been integrated with different purposes and visions. The two most popular cryptocurrencies are Bitcoin and Ethereum.
Some cryptocurrencies have limited crypto coins that can be generated, like Bitcoin, which has a limit of 21 million, but others like Ethereum have an unlimited supply of coins.
Crypto can be mined using competitive mining computers (rigs), a low-cost power supply. mining software or purchased through a cryptocurrency exchange. The value of crypto coins is based on the principle of demand and supply in the crypto markets. The limited supply and rising demand for Bitcoin are why it’s one of the most costly crypto coins in the industry.
Cryptocurrency is the most popular use case of blockchain technology. The surge in the popularity of crypto in the last decade has caused the number of cryptocurrencies to increase up to 18,465.
Over 284 million active crypto users globally have invested in these different cryptocurrencies. India leads the charts with 100.7 million users, followed by the United States and Nigeria at 27.3 million and 13 million, respectively.
Cryptocurrency is different from fiat currencies like the US dollar or the British pound because it is based on a decentralized network and has no involvement from centralized authorities like the government or financial institutions.
Why Is Cryptocurrency Based on Blockchain Technology?
A blockchain is a set of connected online blocks or ledgers. It’s used as the base technology for creating cryptocurrencies because of the security, reliability, and transparency it brings to the table.
Every block has a specific transaction set that individual network members can verify. It’s become impossible to forge or manipulate transaction history on the blockchain network because the new block needs to be verified by an individual node before getting confirmed.
The individual node needs to agree with the content on the online computer with a ledger or copy of a ledger. The usability of blockchain is not limited to cryptocurrency, as it can be used on the supply chain network, financial transactions, voting, and crowdfunding.
Understanding cryptocurrency in-depth can’t be done without exploring the types of cryptocurrency.
Different Types of Crypto
Cryptocurrency is broadly categorized into coins and tokens.
Coins
The primary currency that is created using blockchain technology is termed coins. Different coins are based on different blockchain networks like Ethereum and Ripple.
Ether is a crypto coin based on the Ethereum blockchain and is the primary source of transactions to use the Ethereum blockchain for different purposes. As a known fact, Bitcoin is one of the most popular and highly valued coins in the crypto arena and was created in 2009 by a creator known by the pseudonym Satoshi Nakamoto.
Once it was launched, different Altcoins or alternatives to Bitcoin came into the market, like Litecoin, Peercoin, Namecoin, etc. While the market value of these coins can be volatile for many investors, different stable coins like the USD coin and Tether popularized over the past few years.
Different coins have different characteristics and specialties. Some offer smart contracts, others offer low volatility, and numerous others want to change the existing ecosystem in the real world by replacing credit cards.
Tokens
Tokens are the assets built on existing blockchain and can help formulate and execute unique smart contracts. Smart contracts can be used to establish ownership of assets.
It differs from a coin constructed in the blockchain network using the existing coin, like Bitcoin or Ethereum.
Tokens can also represent the unit value of money, coins, and digital assets that can be transferred or received. They are circulated through an initial coin offering (ICO) and are further divided into three types:
- Security tokens (similar to stocks)
- Value tokens (like Bitcoin)
- Utility tokens (used for specific purposes)
Cryptocurrencies are built on blockchain technology and have a specific purpose, use case, or motive. The reason behind the development of cryptocurrency is the primary reason for its selling or buying.
While other elements like trading can also affect the buying and selling of crypto coins. But now, with the slow global acceptance of cryptocurrency, it can be used to sell or buy goods through direct transactions with the companies.
Most Common Types of Cryptocurrencies
Here are the most common coins in 2022.
Bitcoin
The most popular and valuable crypto coin, Bitcoin is the leading crypto coin used in the market. There are over 19 million Bitcoins that have been mined till date, and the limit is up to 21 million.
It was created with a vision to create a decentralized financial ecosystem free from interference from central banks and governments.
The blockchain network or digital ledger contains the history of every bitcoin transaction, and the fundamentals of Bitcoin are used in creating most of the coins in the market.
Ethereum
Ethereum is also a blockchain network developed as a programmable blockchain. It allows network users to launch, create, monetize, and use different applications based on the Ethereum blockchain.
Ether coin is required to transact on the blockchain, and it acts as the medium for the monetary exchange of products. Multiple new cryptos use the Ethereum blockchain to launch their initial coin offerings, and it is also behind the rise of NFTs.
USDC
Developed on the Ethereum blockchain, USDC is pegged with the US dollar value. It guarantees a 1:1 ratio with the dollar for a stable exchange form.
Multiple crypto investors purchase USDC for its minimal volatility and risk involvement. It offers cheaper and faster transactions that enable users to rely on Stablecoin. There are over 53 million USD in circulation, but no data are available for the maximum limit of the coin.
Binance Coin
Binance created a crypto token in 2017 that can be used as a medium of exchange on its crypto exchange platform. Initially developed on the Ethereum blockchain, the BNB coin was transferred to Binance blockchain.
The coin was created as a utility token that can be used for available discounts and special offers on the crypto exchange platform.
But now, because of the surge in value and crypto acceptance globally, it is used as a direct exchange for booking travel, entertainment, payments, and other financial services.
It created 200 million tokens and offered 100 million in the ICO. Later Binance started repurchasing the tokens and burning them to increase the demand and scarcity of the coin.
The sales or purchase of these coins happen on different crypto exchanges that streamline the conversion process of fiat money to crypto and vice versa.
Can Crypto Be Used to Buy and Sell Goods?
Cryptocurrency is a significant part of the decentralized finance system or DeFi and can be used for buying or selling physical goods.
The process of transferring cryptocurrency to the wallet address of the distributor, manufacturers, or dealers can streamline the buying and selling of goods with no involvement of the central authority.
Businesses can directly get in touch with customers and receive cryptocurrencies worth the set price and complete transactions.
In the traditional methods, to purchase a firearm from a different location in the country, once the amount is transferred to the dealer or the distributor, the government or the financial intuition can decide the success of the transfer.
But crypto helps bypass the barriers and enables buying and selling goods with no hindrance. With the advancements and wide adaptation of cryptocurrency, it is highly likely to replace credit cards, cash, and debit card dependencies.
Cryptocurrency Legalization
In the United States, multiple stores and gas stations have Bitcoin ATMs, but there are restrictions on paying utility bills with cryptocurrencies. In the current scenario, in the United States, majority of the people prefer to purchase goods using fiat currencies or credit cards, but the drift towards crypto can happen in the coming years.
People in the United States purchase crypto to make investment gains, but the trend can change with multiple companies starting to accept crypto as the transaction medium.
Countries like Ukraine and El Salvador have legalized Bitcoin, and numerous people prefer paying through crypto instead of paper money because of the local economic conditions.
Once more countries globally start legalizing crypto, most companies may likely decide to open new gates of payment acceptance.
Credit Card Companies Are Switching to Crypto
Mastercard and Visa have started partnering with multiple cryptocurrency exchanges to settle debit card and credit card transactions using cryptocurrency instead of traditional fiat currency.
Companies fear the risk cryptocurrency holds for their business model and adopt the cryptocurrency trend to give merchants and consumers a wide range of payment options.
Sooner or later, these companies can start implementing new crypto payment gateways in the countries where it has been legalized, enabling consumers to purchase goods or services using crypto.
Even different financial institutions like JPM (JPMorgan Chase & Co.) are testing blockchain technology to reduce the transaction cost for payment processing.
Easy Cross-Border Transactions Using Crypto
American Express CEO stated that digital currencies could simplify cross-border payments without worrying about the fiat processing time and exchange rates.
Customers can easily purchase goods and services from across the border with no barriers in the payment process, and the history of the transaction can be easily stored on the blockchain network as proof.
Crypto Can Simplify the Credit Card Payment Process
The fundamental trouble that credit card payments have is the involvement of multiple steps during the payment process. It delays the time for completing the payment as the individual purchases go through a network of VAN, PG, and credit card companies.
The payment has to pass ridiculous nitpicks, ambiguous standards, or mistake checks that can hold the approval of the payments or even result in failed transactions.
On the other hand, cryptocurrency’s processing method and data storage help to bypass the inefficient multi-layer ecosystem and convert it into a single layer structure to minimize the purchasing time.
The quick movement of crypto from one wallet to another removes the forcible delays in the transfer, and individual transactions are in the block verified by nodes spread on the network.
The Strike app enables customers to pay for their taxis using cryptocurrencies and can process payments within a blink of an eye.
Customers can avoid waiting for 2-3 days for their credit card payment to process and get confirmation or rejection of the transaction process.
The security of the cryptocurrency is also a big highlight that can increase the adoption process and boost its legalization.
Is Crypto a Safe Way to Pay for Goods and Services?
Cryptocurrency is safer and more secure than debit or credit card transactions because it doesn’t involve third-party verification.
The zero involvement of the central authority avoids the risk of data loss or data breaches that are common with banks globally.
Hackers consistently try to breach the centralized database of the banks or other financial institutions using phishing, DDoS, and ransomware, which can cause millions of losses for the customers and banks.
With crypto, the information is secured on the blockchain network, which is decentralized, and the data is spread across the network, which makes it hard to penetrate and extract the required information to steal money or other information.
It becomes difficult to steal someone’s identity as the blockchain general ledger is the base to verify and store individual transactions.
Multiple other elements are involved in finalizing that crypto is a safe way to pay for goods and services. Have a look.
Irreversible Crypto Transactions
Once the payment is done using a cryptocurrency; it’s permanent. Businesses can decide whether to refund the amount or not. Enterprises need to be prepared to handle the refunds and track the details of the transactions to ensure a quality customer experience.
The irreversibility makes it compulsory to track records that can help businesses streamline their finances better. It gives more control to businesses over the cash flow and helps maintain transparency in their business ecosystem.
But business employees need to initiate the refund manually, which can increase the workload during a peak season.
Minimal Charges and Safer Transactions
Businesses need to pay different charges to payment processors like PayPal, which can be close to 4%. It can impact the pricing of the products and slightly increase the cost for the customers.
Cryptocurrencies can cause merchants a minimal of 1% transaction fees. It can also enable businesses and customers to avoid the international currency payment fees that increase the price of goods and services.
The safer and more affordable crypto transaction makes it suitable for quick and hassle-free transaction methods for businesses and customers globally.
Use of VPN
The use of a VPN or virtual private network can help to increase the security layer of the crypto transactions and can encrypt the data that travels from a device to the internet endpoint.
It ensures that the hackers cannot monitor the online traffic or have the freedom to intercept the private keys that can give direct access to the wallets.
Wallets play an integral role in keeping the crypto safe so it can be later used for transactions. The buyer and the seller have digital wallets that store and secure cryptocurrencies or other digital assets.
Storing Private Keys Offline
There are two types of crypto wallets, i.e., hot and cold wallets, that customers and business owners can use. Hot wallets are connected to the crypto exchange and are online, making them prone to cyberattacks.
Investors need to protect their hot wallets using a complex and strong password to avoid brute-force attacks from hackers that can leak their credentials and compromise their digital assets.
In contrast, cold wallets are the safest option to help investors store the crypto key in offline storage to disconnect from the online hack attempts. Different offline storage devices, like a flash drive or hard drive, can be used to secure the crypto access private key to their wallet.
Businesses and customers can protect their crypto transactions using the cold wallet and feel secure from the online crypto hacking attempts, which can cause the loss of digital assets.
What Companies Accept Cryptocurrency?
Multiple companies have started accepting crypto payments from their customers to adopt the surge in the popularity of crypto payments. Different companies from different industries are stepping into the gear of accepting crypto payments to offer their customers a wide horizon of payment methods.
The Tennessee Titans become the first NFL team to accept Bitcoin payments for merchandise, in-game beverages, and food sales. Using a third-party conversion will allow their fans to pay for season tickets, PSLs, and suites using Bitcoin.
Apart from that, here is the list of companies that have started accepting crypto payments:
Microsoft
One of the biggest software companies in the world has started accepting digital currency from their customers for the different services offered and a wide range of products.
Bitcoin can be used to pay for Microsoft apps, Xbox Live, games, and other Microsoft content.
Wikipedia
The world’s most comprehensive and extensive open-source informational website, Wikipedia accepts financial contributions and donations in Bitcoin. BitPay is used as the platform by Wikimedia to enable users to give financial aid using Bitcoin.
PayPal
PayPal has introduced a crypto exchange platform that can help buy and sell cryptocurrency. In addition to that, its customer base in the United States can use cryptocurrency at merchants accepting PayPal. It’s not restricted to Bitcoin and can accept some leading coins like Bitcoin and Ethereum.
Starbucks
Starbucks enabled its customers to add funds to its company app using Bitcoin. Bakkt, the third-party digital wallet, helps the customers convert Bitcoin to dollars for its merchant partner – Starbucks.
AT&T
One of the major mobile phone service providers in the United States, AT&T offers its customers to pay using crypto payments through BitPay. Their customers can use the third-party payment gateway with the application while paying using different cryptocurrencies during the checkout process.
Overstock
A renowned retailer in the United States market, Overstock became the first major retail player to accept cryptocurrencies by partnering with a leading crypto exchange company – Coinbase. It was one of the first movers toward accepting crypto payments for selling goods on its platform, even before Microsoft and PayPal.
Twitch
Twitch added crypto to its payment options back in 2014. One of the top game streaming platforms globally is owned by Amazon, which accepts a wide range of leading crypto coins like Ether, Bitcoin Cash, Bitcoin, and USD Coin, among others. It also accepts the lesser-known crypto coins like GUSD, PAX, and BUSD.
Amazon
Customers can use third-party crypto conversion platforms like Purse.io if they want to make payments on Amazon using Bitcoin. The company doesn’t directly support crypto payments but gives an alternative option.
CheapAir
One of the leading travel agencies, CheapAir started accepting cryptocurrencies with the help of Coinbase and then later switched to BTCPayServer as their third-party service provider. Customers can use digital curries and Stablecoins like DOGE, USDC, ETH, and BTC for payments to book hotels and flights
Rakuten
Rakuten is one of the global electronic eCommerce brands and enables its customers to charge their Rakuten Cash in their wallets using cryptocurrencies. It accepts different Altcoins like Ethereum, Bitcoin Cash, and even Bitcoin
All the mentioned major brands are from different industries and have switched towards providing a holistic payment option for their customers.
The global acceptance of cryptocurrency can scale the number of companies accepting digital payments using crypto, and it will help everyone escape the traditional time-consuming, unsafe payment ecosystem.
Cryptocurrency payments are becoming the new norm, and there’s a lot of transition in the next few years.
How Do Companies Start Accepting Crypto?
Companies need a dedicated cryptocurrency payment gateway to enable their customers to start transacting using different cryptocurrencies. Crypto payments like Bitcoin, Ripple, Litecoin, Bitcoin Cash, etc. can be accepted and converted into dollars using a third-party crypto converter.
Companies can also receive crypto payments in their wallets by sharing the wallet address with the customers to complete the payment transaction.
A dedicated cryptocurrency payment gateway allows the business to automate the payment process and ensure that the crypto transaction process is convenient and fast to help the company and customers connect better.
Associating with a third-party cryptocurrency payment gateway can help companies reduce the intermediaries involved and ensure highly secure and encrypted online payments on blockchain technology.
Using a Cryptocurrency Wallet
Companies can set up a crypto wallet link to their bank account to receive or send money. Sharing the crypto address directly with the customers can help businesses make the crypto transaction quick.
But a manual check by businesses is required to properly manage the refunds and other aspects of crypto payments using crypto-wallets.
It’s suggested that businesses adapt to a multi-cryptocurrency wallet to enable customers to pay using their versatile crypto portfolio. Providing more options can help businesses streamline the crypto payment process.
It also saves the business from opening multiple wallet accounts and managing them to accept various cryptocurrencies.
A crypto wallet has a unique address that the customers can use to transfer quick crypto coins to the business wallet. Different ledgers like Guarda and Nano S provide the freedom to transact over 30 crypto coins between the merchant and the customers.
Businesses need to ensure that their wallet is secure, reliable, and can integrate seamlessly with other software wallets and applications.
Using Crypto Payment Gateway
If businesses don’t want to automate the process, they can link their crypto wallet to a crypto payment processing software that can streamline their transaction process.
If the website is based on WooCommerce, Magenta, Shopify, or WordPress, then businesses can access multiple plugins and install them on their website to handle the crypto payment processing.
The alternative to finding a plugin is to look for a crypto payment gateway offered by different crypto-based companies. Different crypto processors are available in the industry and offer multiple features to process transactions like detailed invoices, payment buttons, and transaction history.
Select a cryptocurrency gateway that offers a low transaction fee, accepts different cryptos, integrates seamlessly with the website, and offers no minimum payout balance and restrictions.
Businesses need to ensure that the cryptocurrency gateway is secure and settles their transactions quickly for faster payments.
Businesses can also partner with crypto exchange platforms like Coinbase and others to create a dedicated cryptocurrency payment acceptance network.
When it comes to purchasing guns and ammo, there has been a significant change in its traditional processes. Multiple businesses launch gun NFTs using crypto tokens, and others accept payments using cryptocurrencies.
We, at Weapon Depot, are keen on adapting to the modern and advanced means of transaction with gun lovers in the United States.
Weapon Depot Marketplace Will Soon Accept Crypto at weapondepot.com
Weapon Depot Marketplace offers a wide range of guns, ammunition, and other armory equipment from multiple authorized dealers spread across the country.
We have decided to launch a guns and utility NFT marketplace where collectors can access amazing digital assets from out-of-the-box creators, focusing on future technology.
Not only that, we’ll open gateways to accept cryptocurrency for monetary exchange for all the products and goods listed on our website. Our initiative can drive a new wave in the guns and ammunition industry and help us deliver quality customer service to our dealers and customers.