Blockchain – as an independent technology, is transforming the way assets can be handled. The technology has efficiently outsmarted the need of intermediate parties such as banks and other financial gateways. Crypto wallets are the new gatekeepers for upcoming generations. The basic idea of Crypto wallets is to store the keys and addresses of wallets that stays in the blockchain network under each cryptocurrency.
Crypto wallets are more than just applications holding cryptocurrencies. It beholds the futuristic financial infrastructure that enables access to various services that include economic management, trading, insurance, payment handling, identity, and social media.
The number of blockchain-based users has roughly doubled each year. If this current trend continues, there will be a billion crypto users by 2030. According to Statista, the number of Blockchain wallets has been growing since the discovery of Bitcoin, reaching over 50 million blockchain wallet users at the end of June 2020.
With accelerating demands, a few giant smartphone manufacturers such as Samsung, HTC, and several other startups plan to introduce smartphones with cryptocurrency wallets.
Now, let us dig in more about the benefits associated with Crypto Wallets.
- Reduced transfer costs
With traditional transaction methodologies, you have to wait to send or receive money with a significant additional amount of bank changes as transaction fees. Crypto transactions make the process instantaneous with absolutely no additional fees. There is no third-party intervention that eventually speeds up the task with full transparency.
- Global Currency
Cryptocurrency rules by global acceptance. Bitcoins, for instance, could be purchased by anyone with a small constraint of having an internet connection. It’s a fiat currency that can even be traded for digital coins. If a person is holding a cryptocurrency, only he/she is authorized to control the account. That means any other third party does not own it. Therefore, nobody can steal your digital money; it’s secured in your crypto wallet.
- Decentralized structure
There is no centralized control over the transaction network. Blockchain technology ensures (Peer-to-Peer) P2P connection with the decentralized databases over the network. So, it’s not under the government’s constant control that eradicates most of the hurdles during currency exchange.
- Transparency and Security
The transactions are under protection by cryptography, and it overtime stores the transaction history, locked in the data blocks. These blocks are cryptographically linked together and are secured. Crypto wallets enabling cryptography for security, store your public and private keys for integrating with the blockchain network to carry out the required transactions. Here the public and private keys have to match to proceed with the transaction.
As crypto wallets leverage the benefits of full scale digitized wallets, they will become a substantial step towards the evolution of banks, value transfer, transactions, exchanges, trading, etc. It’s likely to control and manage your social media networks such as LinkedIn, Facebook, photos shared over Instagram and Snapchat, your Gmail, and even your Amazon purchases.
Additionally, several prominent organizations use blockchain-based wallets for customer loyalty programs as a new strategic and reliable marketing technique.
We are Kwegg, a blockchain-based customer loyalty wallet infrastructure that enables organizations to incentivize user behaviors to motivate them. Kwegg APIs integrated with the enterprise system help listen to all customers’ micro-interactions and reward them with coins that they can redeem. Adopting the Kwegg blockchain wallet for loyalty drives companies to make partnerships without explicitly adding complexity to the system by appending more redemption partnership options to the ecosystem. Blockchain allows both large and local partners to create coherent relations while virtually eliminating the back-end annoyance of coin redemption for customers.