Cryptocurrencies are finally being recognised as a genuine alternative to fiat currencies rather than a trend that has the potential to offer good investment opportunities. While many have made a lot of money during the rise of crypto, its many benefits as a usable currency are beginning to shine through.
As consumer trends adapt to a digital landscape, cybersecurity has never been so important. Millions of people in the UK conduct a lot of their business online including banking, paying bills, shopping, and gambling. Because of this, finding a secure way to make online payments is imperative.
Online businesses offer a fast and convenient way for UK consumers to carry out essential and recreational transactions, and they also provide a borderless market where people can browse sites and apps set up in other countries.
Non-UK sites can offer a variety of different products and deals in comparison with UK businesses that tempt consumers to explore them. For example, non-UK casinos accepting UK players offer impressive sign-up bonuses according to casino expert Nick Pappas, as well as a larger game selection, and simple mobile accessibility. Likewise, many eCommerce sites offer other products in different parts of the world that aren’t available in the UK.
Cryptographic Encryption
Cryptographic encryption secures transaction data to ensure sensitive information can’t be intercepted by nefarious third parties.
Blockchain Validation
Algorithms that require the consensus of independent users help to prevent fraudulent activities and double-spending. Proof of Stake and Proof of Work are two examples of this.
Regular activity provides a small window of opportunity for criminals to attempt to hack systems. This would already be a task requiring significant computer power, but every time blocks of work are completed, it would require hackers to also break the following block of information.
Multi-Signature Authorisation
The use of multi-signature wallets requires the use of multiple keys for transactions to be authorised. This significantly reduces the risk of fraudulent transactions or unauthorised access.
Dual-Factor and Biometric Authentication
Authorising account access and transactions is key to online security and using dual-factor and biometric authentication can help. Dual-factor authentication requires additional confirmation when logging into an account, this will typically be in the form of a one-use code that would be sent to a mobile number or email address associated with the account.
Biometric authentication is even more secure and is only possible because of the development of mobile technology. Face recognition and fingerprint scanning technology can ensure only authorised parties can access accounts or confirm transactions.
Data Privacy and Anonymity
Cybersecurity relies on users being able to keep their personal data secure, the best way to do this is by minimising the amount of data you allow to be used. Traditional payment methods require bank or card details and further authentication. Crypto transactions can significantly reduce the amount of data you need to provide in a transaction.
Decentralisation
The decentralised nature of cryptocurrencies gives them far greater protection against centralised attacks. Cryptocurrencies run on blockchains that rely on a system of nodes (computer networks) that are monitored by users around the world.
The benefit of crypto transaction information being stored on distributed ledgers includes less opportunity for cyber attacks.
Immutable Transactions
The immutability of crypto transactions means that when they are completed they cannot be deleted or altered. This guarantees the integrity of transactions and their records.
Reduced Fraud
Crypto acceptance among merchants also holds benefits, including a reduction in the risk of fraudulent behaviour by customers. Chargeback fraud with credit card payments can often see merchants lose funds despite doing nothing wrong.
Cryptocurrency transactions can’t be reversed, meaning merchants do not have to worry about sales after their completion.
Secure International Transactions
International transactions are more common than ever before with consumers having easy access to sites and apps around the world. Using cryptocurrencies for international transactions makes it easier and cheaper for all parties with no exchange rates to worry about and lower transaction fees.
Crypto also requires less intermediary involvement, reducing the risk of being exposed to cyber-attacks.
Improved Transparency
The transparency of crypto transactions comes from being recorded on the blockchain. This public ledger makes it easier for third parties to carry out audits on transactions to verify their authenticity and reduce the risk of fraud.
With more online businesses beginning to accept crypto payments, the market is improving for consumer safety. Users will still have to maintain safe practices with any online transaction, but online security could be made easier by employing crypto payment methods.
Additional security methods including keeping crypto keys and other valuable information in external storage devices will protect users against hacking and data theft.
