Blockchain technology is one of the groundbreaking techs of this century. It is the encryption tech that supports the database systems of the famous Bitcoin and Ethereum cryptocurrencies. Based on blockchain technology, there exists thousands of different cryptocurrencies that estimate to more than $470 billion.

Blockchain technology was developed and released to the public in 2008 by an unknown developer, referred to as Satoshi Nakamoto. These days, the word Blockchain is interchangeable with the word bitcoin, though this is not actually correct. Bitcoin and security expert, Andreas Antonopoulos, spoke on the issue interchanging the term ‘Blockchain’ with Public blockchain networks, bitcoin in particular. Though, initially, Blockchain started as an encryption tech for bitcoin, since then it has found other uses in other arenas.

Why Blockchain on WordPress?

WordPress has started to integrate the use of Blockchain technology, such as using cryptocurrencies in payment gateways. However, the pace with which different arenas of Blockchain are being put into WordPress is slow. This is partly due to the reluctance towards the technology, and partly due to fluctuations in the cryptocurrency market.

However, as a technology with immense potential, that will future-proof your business, you should be mindful of how the technology can be integrated with WordPress. If you host a blog on WordPress, have an e-commerce store or are building a website, it is important to consider how Blockchain technology can hold the key for success.

Understanding Blockchain Technology

The term Blockchain refers to an encryption technology which stores transaction data with optimum security.

It works using blocks, which are actually digital records or ledgers that store up data. As the capacity of each block is filled, it is linked to a next block using a hash function. Each block contains a cryptographic hash of the previous block, a time-stamp and the data that is stored in it. These three elements make it next to impossible to change the data once it enters the ledger. The only way to change the data, is to modify the complete chain.

Blockchain networks are publicly available and don’t have just one server they reside on. As they are decentralized, anyone can use the database to store and share data simultaneously; anywhere and anytime. This makes it more transparent so it cannot be misused by hackers or other Third parties. Since these ledgers are completely encrypted, no one can see the details of the transaction, although, the transactions themselves are visible to the public.

Uses of Blockchain on WordPress

Generally, we perceive that Blockchain is used for cryptocurrencies, but the technology has much more potential. Here are some examples of how Blockchain is being used actively in WordPress.

Cryptocurrencies

As previously mentioned, Blockchain is more commonly used as an encryption tech for cryptocurrencies. It is not regulated by any entity, which means banks and government have no control over it. It lies solely in the hands of the public. The non-involvement of a third party into the transaction gives it a competitive edge over the others.

It’s almost impossible for a hacker to get into the Blockchain and access the open data of all the users involved in a transaction. Therefore, it is one of the most secure ways to protect your sensitive business data, such as card details.

As with any business, customer data is particularly vulnerable. This is the reason e-commerce sites take extra measures in security to avoid their user data being stolen. Brands majorly use payment gateways services to ensure that their transactions are safe. You do always have the option to move payment processing completely offsite and to the gateway of one of those providers, which ensures that additional PCI compliance and security are in place.

There are numerous benefits to using Blockchain encrypted in your payment gateways:

• The transaction data is fully secured from hackers if compared to traditional methods of transactions where a third party ledger is involved.
• The transaction fee is relatively lower than other methods, such as bank transactions or PayPal because there is no third party involved.
• There is no delay in the processing of the payment because there is no third party involvement.
• It benefits an international audience as it is a form of digital currency that gets translated into national currency based on their current and conventional value.

WordPress is currently integrating several plugins that support the transaction of cryptocurrency. There are a number of cryptocurrency payment tools available online, they are 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.

Identity verification

Cyber-crime is a big concern for most businesses. Most of the time, websites get hacked because of poor password practices and poor protection for weak password forms. It is easy for hackers to identify commonly used passwords or permutations of it and get into a personal account.

Another use for Blockchain is for password and identity protection services. More companies, such as ShoCard and IBM, are providing identity verification that enables users to decide how they want to access their applications and which information is shared with them. Although, it’s unlikely that these will be added to WordPress default soon, the tech has potential for WordPress to incorporate it.

Cloud storage services

Data encrypted in Blockchain is stored off server. Not only is the data is blocked because of an end to end encryption, but also it is not particularly specified in one location but shared among all the users. All WordPress users must consider Blockchain based cloud storage which makes it almost impossible to penetrate the data from unauthorized sources. Not only does it relieve your web server of the weight of your files, but it creates a more secure location for your content.

Conclusion

I’s clear that Blockchain is a secure, independent and faster way to make payments online but its potential may not have been fully recognized by business owners. For WordPress users looking to future-proof their business, it’s important to keep an eye on this tech to see how it can be used to enhance your digital presence.

Author:

Madan Pariyar, a blogger at WebPrecious and a digital marketing strategist helping clients to resolve their website woes. When not busy with all things marketing related, you may find me occasionally watching movies, traveling and spending time with my family.