Although it’s one of the largest, this industry faces some of the most debilitating challenges. Spankchain, a blockchain startup serving the adult entertainment industry noted in a blog post the main pain points for this industry. Top of the list is payment processing. It’s not a secret that major payment providers like PayPal and Stripe do not support adult entertainment businesses, including those dealing in sex toys and pornography.
Spankchain’s founders reckon that customers also need to transact discreetly, but existing payment methods won’t offer that, partly because of KYC policies that they must adhere to.
Besides, popular social media sites like Facebook bar merchants in the adult industries from advertising their businesses on social platforms.
There’s also the growing challenge of chargebacks, synonymous with this industry. Chargebacks are a thorn in the industry because of a small loophole that allows customers to reverse credit card transactions.
Spankchain developers reason that there’s only one technology that addresses all the above pain points; blockchain. So, how can blockchain technology be harnessed to transform the adult entertainment industry?
One of the outstanding features of Bitcoin and the blockchain technology is decentralization. The idea is that no central bank or central authority controls the blockchain, the underlying technology behind cryptocurrencies. Essentially, it’s a permanent ledger of transactions that’s stored in decentralized computers, known as nodes. That being the case, cryptocurrencies like Bitcoin are able to offer peer-to-peer, trustless payments with low fees, compared to traditional payment gateways. It’s worth noting that some cryptocurrencies allow for cross border transactions at zero costs.
Anonymity is another quality that endears the blockchain to the adult entertainment industry. In the real sense, the adult entertainment industry thrives when merchants and their customers…