How Blockchain Wallets Drive Secure Payments and Why Should You Build a Wallet

Blockchain technology is the most revolutionizing technology that is changing the way traditional businesses operate. Blockchain-based wallets are serving the world with secure payment gateways to guard payment transactions to provide more security to crypto users. Blockchain wallets enable a fast and secure payment transaction process. If you are planning to develop blockchain wallet, understanding its working will help you make the right decisions throughout the development process.

[sc_fs_multi_faq headline-0=”h3″ question-0=”What are the private and public keys?” answer-0=”Public and private keys are based on cryptography. The private key is used by the actual owner of the wallet to unlock or decrypt the data whereas the public key can be used by anyone or everyone to encrypt the message.” headline-1=”h2″ question-1=”How is security enhanced with blockchain-based wallets?” answer-1=”Blockchain-based wallets work on the mechanism of the distributed network where there is no central authority and everyone owns the data. It maintains full privacy and is virtually impossible to hack.” headline-2=”h2″ question-2=”What is the future of blockchain?” answer-2=”Blockchain has already created an impact in the marketplace and it is prospected that it will grow much higher. It is projected that the blockchain market will grow to over $1.2 billion by 2024.” count=”3″ html=”false”]

How are blockchain wallets securing the online payments?

A blockchain wallet app uses private and public keys. Any wallet transaction is validated by passing it through multiple blockchains that authenticate the buy or sell of a single or multiple cryptocurrencies. Let us explore how wallet transactions are processed.

The process is initiated with the private and public keys on the blockchain server to validate an online transfer. The private key is safely kept with the user himself and the public key is shared with anyone and everyone. It works on the same mechanism as of lock and key, wherein the data or information is in encrypted form and can only be decrypted by using the private key. It is regardless of how many individuals have access to keys; it can only be opened when the right private key matches the public key.

• The process starts when someone initiates a transaction by requesting to complete and validate the process.
• The requested transaction is broadcasted to the peer-to-peer network that consists of various computers and nodes. The network formed by nodes validates a transaction through certain algorithms.
• The transaction verified by the P2P network may involve cryptocurrency, contracts, records or any other information. In our case of cryptocurrency, it has no intrinsic value, no physical representation and is also not regulated by any central banks.
• Once the transaction is verified, it is added to the already maintained ledger as a block. The new block generated will have a different hash and also connected to the previous block, thus making it impossible to be altered. 
• Finally, the transaction is completed.

In order to move to the blockchain-based wallets, we need to understand the needs and benefits of adopting these kinds of wallets.

Benefits of blockchain-based wallets

1. Better security: Blockchain technology makes wallet transactions fast and secure. In the conventional mode of online payments, there are chances of hacking of ATM pins or passwords and there is reduced confidentiality of users’ data.   However, wallet transactions are more secure and private. The transactions are pseudonymous in nature and work on the combination of public and private keys.
2. No central authority: Cryptocurrency works on a decentralized mechanism as is backed by blockchain technology. Various countries of the world are coming forward and showing their interest in forming their own digital currency. It is not regulated by any government intermediary and has a freehold for all the individuals. As nobody controls and owns it, so more and more users are inclined towards the blockchain-based wallets.
3. Easy transfer of funds: Blockchain wallets enable easy and convenient fund transfer. Traditional online payments pass through a network of central authorities which makes it a lengthy process to follow. Blockchain wallet app, on the other hand, makes third party functions redundant, thereby making the transactions quick and cost-efficient.
4. Free from inflation: Fiat currency is affected by inflation. The value of the currency is majorly affected whenever there is an inflation or deflation in the society. On the other hand, cryptocurrency remains unaffected by inflation.

Conclusion

Blockchain wallet app development is gaining quick traction due to its benefits. The blockchain payment mechanism facilitates easy and safe electronic transactions. It has no interruption of the government or any third party. Due to this structure, more and more businessmen are looking forward to develop bitcoin wallet.

We, at Antier Solutions, are a blockchain wallet development company, offering customized solutions to build white label wallets and custom wallets from scratch. All of our wallets are underpinned by industry-leading features to ensure world-class performance, security and user experience.   View a free demo of our white label wallet or schedule a call with our subject matter experts to share your needs for a custom wallet built from scratch.