The bitcoin Asia conference held on May 9-10, 2024 in Hong Kong demonstrated an important milestone in the adoption of bitcoin as a legitimate medium of exchange.
This article describes the strategies and technologies implemented to facilitate seamless bitcoin transactions for goods and services over the two days, leveraging the capabilities of self-custodied payment processing through BTCPay Server.
Executive Summary
Throughout the event, 212 bitcoin transactions were processed, involving four providers and for a total of 7,714,253 sats, equivalent to 36,974.63 HKD.
The average transaction was approximately 36,560 sats (around 175 HKD). Notably, the system maintained full operational uptime with no failures in the bitcoin base chain or Lightning network transactions.
What is BTCPay server?
With banks, you have no choice between self-custody or escrow payment processing.
For example, if you wanted to run a self-custody business with fiat money, you would have to run a cash-only payment business, which carries a high risk of theft by centralizing capital in one place. This would also limit your customer base.
To expand our economic reach beyond our local economies, we create payment networks and payment processors that enable digital transactions.
But what have been the consequences of implementing custodial payment systems over time? Why can't we have a digital payment processor with its own custody? What innovations, freedoms and data do customers and businesses have to sacrifice due to escrow payment processing? What happens if my digital payment method (e.g. credit card, Apple Pay, Venmo) declines even though I have the funds in my account? What valuable data, both financial and personal, am I now giving away thanks to these services?
With BTCPay Server, we can digitally facilitate the cash-like transaction experience, meaning we can make peer-to-peer digital payments. Transactions do not require personal information from the payer nor do they require an intermediary. This eliminates the risks that arise from both conducting cash transactions and relying on a middleman.
BTCPay Server is free to use and completely open source, which means BTCPay Server is not a company, it is simply code.
BTCPay Server is a bitcoin payment processor that allows businesses and individuals to receive payments directly, without relying on third-party services.
Unlike traditional payment processors, BTCPay Server custody of funds and does not charge any transaction fees.
BTCPay Server is a highly adaptable payment processor. It can be integrated into existing systems with APIs, and both individuals and businesses can tailor their payment processing experience to meet specific needs, ensuring seamless integration into their operational frameworks.
In addition to the features listed above, BTCPay Server supports what is known as Prism Payments.
This functionality allows trustless distribution of funds between multiple accounts at the point of sale. This innovative approach fundamentally rethinks the flow of money, enabling real-time compensation for stakeholders and employees.
How to use BTCPay server
Step 1: Set up a BTCPay server
For a complete guide on how to set up a BTCPay server, check this out complete step by step tutorial on youtube.
Step 2: Ensure liquidity and price stability
At the time of writing, the Lightning Network is the only bitcoin scaling solution that maintains bitcoin's cash-like properties when making payments with btc.
The Lightning Network facilitates instant settlement, requires no KYC, and offers almost zero fees, much like the experience of using cash.
For the Lightning Network to work, it needs liquidity. Providing liquidity often means running and managing a node yourself, but BTCPay Server does it for you.
At the conference, the BTCPay Servers nodes, together with To blinkwhich served as the liquidity provider for the conference, ran smoothly and ensured no payment failures occurred.
In addition to using an additional liquidity provider, we also employed a price hedging solution in case we experienced bitcoin price volatility during the conference.
This risk needed to be addressed because vendors who accepted bitcoin at the conference wanted to be paid in their local currency once the conference was over.
A bearish scenario for a vendor would be to receive a payment of $10 in bitcoin at the time of sale while the price of bitcoin was high, and then over the course of the conference, the price of bitcoin could have fallen by 50%.
In this type of situation, when it came time to settle in the local currency for the supplier, they would only receive $5 in their local currency, which is unacceptable.
To mitigate this risk, we use “stablesats,” a Blink feature that allows instant conversion to a synthetic version of a stablecoin (such as the Hong Kong dollar) at the point of sale.
Learn more about Blink features and services here.
Step 3: Implementation of physical POS machines
Despite the digital nature of bitcoin transactions, physical point of sale (POS) machines were implemented to provide a familiar payment experience to attendees and vendors.
We use POS machines Bitcoinize. These devices also made it easier to issue physical receipts upon request.
Step 4: Simplify bitcoin Access with Bolt Cards
To facilitate smooth bitcoin transactions at the conference, we also use bolt cards.
These personalized “bitcoin Asia” edition cards allowed attendees to convert fiat currency into bitcoin for use within the event. The cards enabled simple NFC eavesdropping on POS devices.
Step 5: Training for merchants and employees
A training session was held prior to the conference to familiarize providers with the use of the BTCPay server.
The 10-minute session was effective with minimal questions from participants.
A group chat was created for support, which remained largely inactive due to the smooth functioning of the payment system.
The full video of the training session is available. here.
Conclusion
Thanks to free and open source software like BTCPay Server and innovative solutions from companies like Blink, transacting bitcoins at the bitcoin Asia conference was incredibly easy.
The successful use of the BTCPay server at the bitcoin Asia conference demonstrated the potential for broader adoption of bitcoin in everyday commerce.
Consider using these solutions for your next event or within your local economy.
