One of the problems many new crypto projects face is that their newly created tokens are not widely accepted. In fact, just a handful of these cryptocurrencies could be used for paying for stuff online, let alone offline.
So, in order to cash out or spend their token holdings — presuming they want to do so — users typically first convert them to some more widely accepted cryptocurrency, such as Bitcoin or Ethereum, and only then they are able to freely spend them.
One company aims to change that, and we salute their efforts…
Making ERC20 tokens useful outside of their environments
The ERC20 standard is created to make life easier to blockchain project developers, enabling them to use a certain code in their apps in order to be able to raise money for their businesses. Tokens based on this standard follow a set of rules so they could be launched on the Ethereum blockchain.
And now, one company wants to extend their use and make them as good as major cryptocurrencies.
Called CoinPayments, it is not a newbie in the world of cryptocurrencies and it even dubs itself a “pioneer in the digital payments space.” Its latest effort — and later on we’ll take a look at what they did in the recent past — involves offering payment processing capabilities for transactions with ERC20-compliant tokens.
CoinPayments claims that its payment gateway has the potential to help fledgling crypto startups increase adoption for their custom-made tokens, without requiring them to code their own payment processing solutions.
On the other hand, the solution would also allow end users — those who have bought these ERC20 tokens, usually in an ICO — to spend their holdings with (primarily) online stores and physical merchants which accept CoinPayments as a payment method.
“Scalability and utility issues around Ethereum tokens have taken the spotlight in the cryptocurrency industry today,” Alex Alexandrov, the CEO of CoinPayments, told Cointelegraph. “My vision is a world built around thousands of micro economies focused on building niche industry specific communities. CoinPayments provides a solution for every new token to have a chance to participate in this new world of banking.”
If you’re into tech details, you can check the official CoinPayments blog for a full breakdown of how this ERC20 token payment processing solution works.
CoinPayments is also working on other things…
As we have mentioned previously, CoinPayments has been in this space for quite some time now.
Earlier this year, the company has performed an airdrop of its platform’s utility token, which is known as the CPS Coin. As a result, all current users of the platform have received 100 CPS Coins each, worth about €10; and the same is true for new customers who sign-up for the first time before August 1, 2018.
The CPS Coin is created as a means of providing discounts and rebates on the merchant transaction fees, conversion fees and coin hosting fees — while enabling staking rewards and exclusive access to allocations of ICOs hosted by CoinPayments.
In addition, the company is also preparing to launch CoinPayments 3.0 with a revamped interface that should provide wallet holders and online merchants with an “even more user-friendly experience.”
CoinPayments‘ currently reaches more than one million vendors in 182 countries, many of which can be found at the company’s website. Through its cloud payment technology that includes point of sale interfaces, plugins and APIs – merchants of all sizes are able to accept Bitcoin and other cryptocurrencies.