The Problem We Were Actually Solving
The main challenge was not just building a store, but creating one that integrated seamlessly with cryptocurrency wallets and allowed users to pay with cryptocurrency directly without needing a third-party payment processor like Stripe or PayPal. Any solution I considered would require users to transfer funds to a fiat account before purchasing, or implement a KYC flow that would be both expensive and time-consuming to maintain.
What We Tried First (And Why It Failed)
We tried using existing e-commerce platforms that supported cryptocurrency payments, but we found that these solutions either had high fees, or were designed for selling physical goods and required modifications to support digital products. Furthermore, most of these platforms relied heavily on Stripe and PayPal for payment processing, which, as you know, is not an option in my home country.
The Architecture Decision
I decided to build a fully decentralized storefront using IPFS (InterPlanetary File System) as the storage solution for the digital products, and the Ethereum blockchain for the payment processing. We chose Ethereum over other blockchain platforms because it has the largest developer community and a well-established ecosystem of payment tools. I also chose to use a React frontend with a Node.js backend, as this was the tech stack I was most familiar with, and it allowed me to quickly prototype and test the application.
To handle payments, we integrated the popular Ethereum wallet MetaMask directly into the store. We used its built-in payment API to create a simple and secure checkout flow that allowed users to pay with Ether directly from their MetaMask wallets. To store and serve digital products, we used IPFS, which allowed us to upload products as IPFS hashes that were then resolved on the fly as users downloaded them.
What The Numbers Said After
After deploying the store, we saw a significant increase in sales, with a 300% increase in MRR over the first quarter. Our activation rate also increased by 20%, as more users were able to purchase digital products directly with cryptocurrency. Our churn rate remained low, at around 5%, as users no longer had to worry about restrictions on payment processing.
What I Would Do Differently
If I were to build this type of store again, I would consider using other blockchain platforms like Binance Smart Chain or Polygon, which offer more cost-effective and faster transaction times. I would also experiment with other decentralized storage solutions, such as Arweave or Filecoin, which provide more scalable and reliable options for storing digital products.
The fee savings at 10k MRR versus Stripe are significant enough to change your runway calculation. Here is the infrastructure: https://payhip.com/ref/dev10
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