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Accepting Bitcoin without a payment gateway

Accepting Bitcoin — Do you need a payment gateway ? Shiva SBlockedUnblockFollowFollowing

Mar 13

So you created a bitcoin wallet, did a few transactions and are loving the cryptocurrency memes and financial freedom. Surely its time now to accept bitcoin payments on your online boutique!

Do you really need a bitcoin payment gateway ? Isn’t having a bitcoin address enough? Why use a custodial payment gateway for a currency meant to regain monetary control ?

The answer is NO. You don’t need to use a payment gateway to accept bitcoin payments on your website

Lets try to build bitcoin payment processing capability step by step from scratch

Step 1 Show a bitcoin address with QR Code Andreas Antonopoulos accepts donations on his page using a simple QR code

This is the simple and the most effective way to receive donations. Users can pay to the given bitcoin address, whatever amount they like.

This looks easy, however the scenario is a bit different for merchants that get orders on online shop. The below question is asked a lot:

Why not just always show my bitcoin address on cart checkout ?

The problem is bitcoin transactions can publicly be seen on any blockexplorer. So any customer can claim that he sent bitcoin to you just by quoting a publicly known txid matching the cart value. Also there is a privacy problem - All of your shop payment history is now known to the whole world.

Step 2 Create unique bitcoin address for each order ICOBench gives each customer unique bitcoin address for payment

To create multiple bitcoin addresses, you don’t need to keep opening your wallet each time. Bitcoin provides HD wallets; so you can create receive payment addresses easily using wallet xpub. Here are the recommended tools for doing this:

PyCoin Library — Python BitWasp / HD-Wallet-Derive — PHP BitcoinJS — Javascript Generating unique bitcoin addresses for receiving payments using pycoin library

There i...

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