Blockchain not only provides technology to build solutions for industries like financial services, healthcare, digital identity, and 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 codes 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 to 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 are used in a transaction match, respective users can access the exchanged value of their digital assets (tokens) in their wallets.
- Based on how frequent online payments 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 the 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.
