Emerging technologies like AI, AR, and Blockchain are quickly getting mainstream in the corporate world. But, blockchain has gained ground for two reasons- one for managing cryptocurrencies and the other for making online transactions more secure. As more people use digital payment solutions globally, it is necessary for companies and the finance industry to provide a rapid and secure online payment facility. That’ where the blockchain-based wallet comes into the picture.
Blockchain wallet app or wallets have made online payments easier and safer than before. This is the reason why the corporate sector and the fintech industry have warmly embraced blockchain wallet development. Here some questions may arise- how blockchain wallets work and how they offer secure online payments. Let’s discuss how blockchain wallets enable users to make online payments securely.
Types of Blockchain Wallets
Web-based or Hosted Wallets- Third-party hosts such wallets. They have an app or platform-like look and feel, and they are easy to use for all sorts of customers. However, it is important for you to ensure that the third-party has robust security systems available to protect your bitcoins.
Software-based Wallets- This type of wallet can be installed on a laptop or mobile device because it is based on software. These wallets can give full control to users on their bitcoins, however, novices may find it difficult to maintain.
Hardware Wallets- These wallets provide private keys for users on any hardware device including USB. This type of wallet is compatible with several web interfaces and offers extensive support to various cryptocurrencies. It is necessary for the users to connect these wallets to the Internet-operated device. Users can enter a pin and confirm it for using these wallets. The hardware wallet offers the safest option to the users.
Paper Wallets- This type of wallet acts differently. The paper wallet generates the key pair using an application and gets it printed to complete the transaction. This type of wallet can work with a software wallet for buying and selling. The sweeping process can transfer currencies that involve scanning QR code and manual addition of the key pair.
How do Blockchain Wallet Provide Secure Online Payments?
The mobile wallet app development company integrates all the major features and advancements of the blockchain technology while making a blockchain wallet app. It is interesting to know the mechanism of blockchain wallets and how the technology safeguards online payment.
The blockchain wallet interacts with multiple Blockchains to validate the user’s online payment thereby enabling users to buy or sell cryptocurrencies. This is just an outline of what the blockchain wallet does while transactions take place.
Now, let’s dig deep into the background processes done in the blockchain wallet apps-
Private and public keys play a vital role in facilitating secure online payment. The public key can be shared with anyone but the private key remains secret. We can compare these keys to traditional lock and keys where the private key is a lock and the public key acts as the key here. It is not important how many people have the keys (public keys), but it is important that these keys are useful for a specific block or the lock (private key).
Simply put, the private key should be matched with the public key to get the details of transactions.
Now comes the locker approach. Just like the users can see what is inside the locker after unlocking it, the users can see the value of their digital assets like Bitcoins and tokens in their wallets after matching the public and private keys.
The blockchain wallet app simplifies the exchange of cryptocurrency in a quick and secure way. Companies or individuals can select the right type of blockchain wallet based on the frequency and volume of online payments.
Here are the key benefits of blockchain wallet development apart from securing online payments.
Top Benefits of Blockchain Wallets
- No regulation
Bitcoin is free from any regulation. Similarly, the blockchain wallet app also needs no permission or regulatory compliance for offering transactions in cryptocurrency. However, due to a decentralized process, no users can block or reject the transferred funds through the blockchain wallet. Banks or any financial institutions cannot share related information about bitcoin as well.
Simply put, there is no regulatory control over the blockchain wallet application while transferring funds.
- Easy installation
A smartphone-based blockchain wallet app is as easy to install as other mobile apps. It is possible to list it on the app stores and users can easily download it on their devices. All you need to choose the right OS for the target audience. However, it is better to come up with a blockchain wallet that can be seamlessly run across both Android and iOS platforms.
- Simple fund transfer
One of the biggest reasons for choosing blockchain wallet app development is to ensure secure online payments in a simple way.
Online payments through banks or PayPal are dependent on the network’s capability and ask for verification every time, but blockchain-based payments are simple and remove all unnecessary procedures.
What’s more, users need not pay additional transaction charges or fees in the blockchain wallet-based transaction.
- Enhanced security
Traditional online transactions using ATM pin and password are risky because hackers can steal confidential data in this method. The blockchain wallet makes online payments secure because hackers can never hack data. The combination of the public and private keys gives additional security to the online transaction.
- Free from the inflationary effect
The government currencies are subject to inflation in the price of commodities. Cryptocurrencies are, on the other hand, free from any inflationary effect. Users can make transactions with ease without any confusion. Developing a blockchain wallet is better for accomplishing online transactions.
Blockchain wallet app development is a hot potato in the corporate sector. Blockchain wallets are famous not only for facilitating cryptocurrency-based transactions but also for ensuring secure online payment. As a robust and reliable digital payment solution, mobile wallets are here to stay.