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Feb 2025

How to answer this Technical interview question about Token Integration for Mid-Level Blockchain Developer?

How would you integrate an Ethereum-based token with an existing payment system?

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Blockchain Developer

Technical

Asked at

Coinbase

Difficulty :

Medium

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Explanation

This question evaluates your ability to integrate blockchain technology with traditional systems. Recruiters assess your understanding of token standards like ERC-20, APIs, and payment gateway integration. Common pitfalls include ignoring interoperability challenges or failing to address scalability. A strong answer includes understanding token standards, implementing APIs, and ensuring seamless integration. Preparation involves studying Ethereum token standards and payment gateway APIs.

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Answer Example

I would start by understanding the payment system’s architecture and identifying integration points. Next, I would create or use an existing ERC-20 token and implement APIs to enable token transfers within the payment system. To ensure scalability, I would explore layer-2 solutions like Polygon for faster and cheaper transactions. For example, I integrated an ERC-20 token into an e-commerce platform, enabling token payments and reducing transaction fees by 40%.

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