Shopify CEO created a buzz on Twitter when he asked the DeFi community for ideas that the online platform could potentially work with. He tweeted:
“Hey #DeFi Twitter. What are the commerce related opportunities that you are most excited about? What role do you want Shopify to play?”
Shopify allowed its merchants to accept cryptocurrencies by integrating several crypto payment applications last year. Lutke’s tweet is encouraging as a major online retail company endorsing the DeFi space only adds to the popularity the crypto market is gaining.
Requests Pour In
The question attracted many responses, including Terra Network’s Do Kwon, who replied saying,
“How about earning a 20% yield on the settlement buffer as it is waiting to be distributed to merchant partners? Earnings can be split merchant / Shopify to align incentives.”
DeFi Twitter has a list of requests that include, but don’t necessarily end at, Bitcoin support, lightning payments, stablecoin integrations for Shopify-based payments, merchants airdrop NFTs, merchants fundraise via compliant token sales, among other exciting ideas.
Partnership proposals with top DeFi projects such as Compound Finance (COMP) and Aave (AAVE) were raised. The suggestions show that integration with real-world applications will be extremely popular and beneficial for the blockchain community and the online retail world.
Centralized To Decentralized?
Some users, however, did argue that a centralized system like Shopify might reduce the potential of decentralization. Lutke responded to this by saying,
“Shopify is a product of pre-crypto times and spiritually aligned with decentralizing opportunity. Over a million businesses use us around the world.”
Others argued that the DeFi space is not relevant for companies like Shopify who would not cope with high transaction fees. However, DeFi enthusiasts noted that this was only true if layer two solutions were ignored. Most transactions are much cheaper than 99.9% of Shopify’s transactions.
A Step Towards Normalizing Crypto Usage?
The crypto market’s popularity is rising upwards; mainstream companies are beginning to accept crypto as a payment form. Shopify integrated BitPay and Coinbase Commerce last year to allow merchants to accept cryptocurrencies as payment.
PayPal revealed a cryptocurrency payments solution for its checkout service recently called “Checkout With Crypto”. It will allow users to pay with Bitcoin (BTC), Ethereum (ETH), Bitcoin cash (BCH), and Litecoin (LTC).
When PayPal enabled crypto trading on its platform, users traded over $242 million worth of cryptocurrencies in just 24 hours. Visa, Mastercard, and Circle are also integrating cryptocurrency payments following Paypal’s integration. Further endorsements from mainstream companies like this will ensure cryptocurrency stability in real-world markets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.