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Investors have been closely tracking the unbridled growth of the crypto world. Whether it is Bitcoins, Ripple or Zcash, crypto coins are here to stay. This also means that currency exchanges and retail purchases will need high-end authentication technologies with super recovery methods to protect our money from heists.
Why is biometric technology being used for crypto wallets?
When it comes to finances and transactions, security will always be of paramount importance. In keeping with this principle, companies have started using many security measures to avoid frauds and scams. For instance, banks will ask us for pass codes and biographical data, users will need to give pins and signatures for ID confirmation.
Biometric technology uses measures that involve biometric features of users for verifying identities of individuals when it comes to accessing any authorized device. These biometric features are basically human physical and biological characteristics which can be compared to the authorized features that are stored in the database. When the features match those of any approve user in the database, this user can be granted access to the device.
When you own crypto assets you will either have hot or cold storage wallets. The hot wallet is where the holder does not hold the private key directly for crypto coins. Instead, the exchange will hold the private key for a wallet and every customer will have a derivative of this wallet. The hot wallet is linked to the Internet but the cold wallet is not. So, protection of the former cannot be guaranteed with passwords only; this security is insufficient.
The biggest strength of cryptocurrencies is decentralization because each owner has a private key. However, cold wallets that are not web-connected may be hard to manage. Here, there is no recovery if the keys get lost or stolen. Some exchanges may provide account recovery services for customers who are scared to risk loss of cold wallets but this usually involves some kind of a trade-off. Some exchanges have therefore installed recovery processes which involve ID verification so that consumers may be protected in cases of thefts or loss. However, such processes may also be susceptible to cyber attacks. So, organizations must take the help of stronger methods like biometrics.
Use of biometric scanners for transactions using crypto coins is as simple as using credit cards; you do not need to wait for processing. With a finger press the customer can get the currency transferred from his wallet to an organization without any lengthy transfer processes or any complications. This is totally secure because it is just like using a bank debit card, except that instead of the card being linked to any bank, it is connected to an encrypted crypto wallet. Given the ways in which the wallet is protected against frauds and because all fingerprints will be unique, chances of actually having someone get access to your crypto account are rare.
So, to sum up, since crypto coins are meant to be private and secure, the obvious transaction method should involve biometric sensor technologies. Non-biometric cards can be used but these cannot guarantee that your wallet will not be infiltrated. Transactions will also be faster with biometrics because the sensors have faster scanning powers.