While the global stock markets try to recover and find their footing with the recent crashes in the Japanese Nikkei and massive sell-offs in the United States continue to spark fears, the one place traders and even casual spenders continue to turn to is crypto. Once thought to be an esoteric concept, today, Bitcoin and cryptocurrencies are quickly becoming the primary and most trusted way to make payments online. From online banking to ordering food online, get to know how cryptocurrencies make online payments much more fun and straightforward.
Unparalleled Security
While purchasing a new pair of shoes is nice with one mouse click, there’s an inherent risk of cyber attacks. Unfortunately, cyber thieves have become so sophisticated that it only takes a nanosecond to find the chink in the online network armor to plant dangerous ransomware and other viruses to hold online businesses hostage. These damaging ransomware attacks lead to trillions and even unrealized losses due to the lack of consumer confidence.
However, with Bitcoin and cryptocurrency, the blockchain technology that it relies on is designed mainly to block cyberattacks. Inheritently, blockchain runs on a decentralized network, which means that the information is passed and stored on multiple nodes to reduce the frequency and probabilities of attacks. And once the information is stored on the blockchain nodes, it’s virtually impossible to alter or tamper with.
Unbeatable Transparency
One problem that some online consumers might run into using credit cards for online businesses and services like medical, online gaming, or making transactions outside of their region is authorization and transparency for those details. Because credit and debit cards need the bank’s approval, it might flag or prevent the transaction from going through.
However, with crypto, the data is secured via cryptography and runs on smart contracts. With smart contracts, the parties involved with the transaction, such as the consumer and an e-commerce store, will be the only ones privy to the transaction details. Also, smart contracts will automatically enforce the deal’s details so that both parties get what they paid for. With this automatic enforcement, players don’t have to worry about these details, and it inspires consumer confidence.
Blockchain Works Wonders Against Fraud
Besides having to contend with cyberattacks like ransomware and malware, online consumers must also contend with potential fraud issues. One of the reasons major prominent online businesses like online casinos heavily support crypto is to virtually eliminate fraud. With the sheer volume of online transactions, crypto, in addition to behavioral AI to monitor the correct user information and normal payment patterns in real time, also works wonders against fraud.
One way cryptocurrency clamps down on fraud is through sophisticated crypto wallets. In addition to the smart contracts used to maintain privacy and security for the intended members, crypto wallets, which are how you transact using cryptocurrency, have their own security measures. When you install a crypto wallet on your computer or device, you set up digital signatures. Digital signatures come with a public and private key.
The private key is meant only for those using the crypto wallet, while the public key is the one you share with others to verify the smart contracts further. Through these keys, you and the other party sign the smart contract to make purchases or transfer crypto between parties.
Another way cryptocurrencies and wallets help guard against fraud is through multi-factor authentication. Most crypto wallets require additional login measures, such as texts and emails with verification codes, to ensure that the right person is using the crypto.
A Borderless Currency
While VPNs help users break down the geo-restrictions, crypto does the same for making payments. No longer do you have to second guess whether or not your credit cards will work in a particular country because crypto doesn’t go through banks. Because it works on its own blockchain technology, there’s no barrier holding back crypto. The other added benefit is speed. Because you don’t have to worry about banks, buying parties can make smart contracts on the sport and process them instantly.
Conclusion
As financial pressure and the transition to AI continue, more companies and consumers will also gravitate to and shift their presence online. With the pressure to maintain safe and instant payment methods, cryptocurrency will continue to move to the front of the line. The latest trend with blockchain technology is to blend with superior VPN encryption technology. The result is the growing crypto VPN that comes with a subscription.