Blockchain-based payment gateway

A blockchain payment gateway can be thought of as an intermediary between a buyer paying with cryptocurrency and a seller who wants to receive funds quickly, securely, and conveniently. At its core is a wallet module that manages cryptocurrency addresses and processes payments. These wallets can be hot for instant transactions, cold for storing reserves, or multi-signature for additional security.

An API layer plays a crucial role, allowing the gateway to connect to online stores, marketplaces, or apps. It automates the process of accepting and verifying payments: the system receives notifications about the receipt of funds and immediately displays their status. Smart contracts are used to enhance trust and automate transactions. They record the terms of the transaction, can act as an escrow account, and ensure that funds are transferred to the seller only when pre-agreed conditions are met.

To reduce volatility risks, the gateway can include a conversion module. Received cryptocurrencies are converted into stablecoins or even fiat currencies in real time through integration with exchanges or DeFi protocols. A monitoring system simultaneously monitors all transactions, identifies suspicious activities, and helps ensure compliance with AML and KYC requirements.