Making Online Payments Secure with Blockchain-Based Crypto Wallets

Making Secure Online Payments with Blockchain-Based Crypto Wallets

Posted by : Mudit Kumar | 28-Feb-2020

  • blockchain-based crypto wallets

    Blockchain not only provides technology to build solutions for industries like financial services, healthcare, digital identity, digital contracts but also offers a platform for crypto wallet development and online payment solutions. Blockchain-powered crypto wallets ensure that users’ cryptocurrencies are safe from threats and hacks while enabling their exchange on different crypto trading platforms. 

    Let’s analyze how blockchain-based crypto wallets make online payment systems more secure and efficient.  But, first, take look at various types of blockchain-based crypto wallets.

    Types of Blockchain-based Cryptocurrency Wallets

    Software Wallets

    Software that you can install on your computer or mobile device. 

    Web/Hosted Wallets

    Third-party providers host them online. They look and feel similar to apps/platforms and are easier to use.

    Hardware Wallets

    These are hardware devices like a USB. They are compatible with several web interfaces and provide support for multiple cryptocurrencies.

    Paper Wallets

    This type of wallet uses a software application to generate a public and private and requires them to be printed to conduct a transaction possible. Transferring currencies using them involves scanning QR code and adding the keys manually. 

    Also Read: Analyzing Different Types of Cryptocurrency Wallets

    Making Online Payments Secure with Blockchain-based Cryptocurrency Wallet Development 

    For a crypto-based online transaction, a blockchain wallet app stores private and public keys. Then, using the kes the wallet interacts with multiple Blockchains for the validation of the online payment and enables users to exchange several cryptocurrencies. Now, let’s find out what happens in the background to make a secure online payment possible? 

    • Understanding the concept of public and private keys that are on Blockchain for online payment is necessary. While the public key is available publicly for anyone, a user’s private key remains secret. These keys follow the same concept of lock and key: the lock (private key) and the keys (public key). Essentially, the private key needs to be correctly matched with the public key.
    • When a private and a public key used in a transaction match, respective users can access the exchanged value of their digital assets (tokens) in their wallet.
    • Based on how frequent online payment you make, you can choose between different types of blockchain wallets as described above.

    Benefits of Using Blockchain-based Crypto Wallets

    Strengthened Security

    Making payments online through a bank using your ATM pin and password is risky. However, with blockchain wallet app development, making online payments can become more secure with almost no chances of data hack when making an online transaction between two parties. 

    Only the concerned people are involved when the transaction is made through cryptocurrencies and no one else can get to know about the payment information. The Blockchain wallet app development is required to make the payment wallet more powerful. A combination of the public and the private keys is required at both ends to make a transaction.

    Regulatory Compliant

    With the use of an advanced blockchain platform, developing crypto wallets can be regulatory compliant. The bank or any organization can request access to share related information about crypto or contract transactions. In other words, nobody can gain control over a wallet with blockchain-based crypto wallet app development while transferring funds.

    Simplified Value Transfer

    Businesses across the globe are choosing blockchain crypto wallets to make their online payments secure. Most online payments are through PayPal and bank payments which force users to depend on the network and wait a while to complete the verification process. But after blockchain wallet app development, it has released all the unwanted things, such as bank charges for a transaction in the case of traditional methods. Now there are no transaction fees if you are using the Blockchain Wallet application.

    Conclusion

    Blockchain wallet app development is essential for having secure crypto wallets, and therefore, secure online payments. It is the reason it is gaining popularity as a solution for electronic transactions. 


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About Author

Mudit Kumar (Writer)

Mudit has been working with Oodles since 2017. He writes about technologies that not only disrupt the digital space but also influence the physical world. Initially, he explored revolutionary technologies like ERP (Enterprise Resource Planning) and AI (Artificial Intelligence). Now, he focuses on unfolding the elements of blockchain technology, given its potential and edge over others.

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