in Business, Challenge, Future, Interesting, Security

Challenges Facing Bitcoin in Web Hosting

It’s unfortunate but Bitcoin and Web hosting services just do not go hand in hand. The main issue being identification (a.k.a anonymity). In theory, anyone should be able to hire a service anonymously. Why would your provider need to know who you are so long as you make payments on time? Well that just happens to be a deal breaker when it comes to hosting. The impact of a customer who is up to no good is far reaching and can impact the reputation of the business and other tenants on the network or platform.

As part of due diligence and order verification, we must know who the counter party is. How can we know for certain that the person making payment using Bitcoin or Litecoin is indeed the person using the service? How can we confirm that the person purchasing service is not planing on a spam or phishing spree? With other payment methods we’re able to match identify and identify fraudulent orders. Paypal accounts map out to a real person or business. Credit card information maps out to a real person. Bitcoin, on the other hand and as designed, maps out to nil.

And so today we came up with a plan (read: compromise). You can make payments using bitcoins but you must first initiate a one-time transaction (can be less than $1) using one of the conventional payment methods (CC, Paypal, etc). This initial transaction allows us to verify who you are in order to establish initial trust. From then on forward you are permitted to pay with Bitcoin or Litecoin.

bitcoin unixy

This mechanism ensures we can continue providing our current clients with the reliable service they expect and grow to support Bitcoin or any other cryptocurrency for that matter.