When we live in a world that is progressing at a fast pace, especially in the field of digitalization and E-Commerce, it is difficult to not get amazed by the constant innovations that keep popping up frequently. E-Commerce is taking a giant leap towards providing the end-user with the look and feel of a real-time shopping experience through technologies like Virtual Reality (VR) and Augmented Reality (AR). But, the only part of e-commerce that seems to be improving in a snailing pace is the online payment methods. Though the present payment gateways are comparatively convenient, there are several hiccups in the system like slow processing, risks of leaking personal data, etc.
But, when cryptocurrency took the internet by storm, technology enthusiasts saw it as a replacement for the slow-paced online payment gateways which are currently in use. Although the cryptocurrency is still in a growing phase, it seems to have a promising future. The term ‘cryptocurrency’ has gained a lot of popularity recently in a very short time span, but most people are unaware of the specific meaning for this term.
Just like in the case of physical currencies we have dollars, rupees, pounds, etc., cryptocurrency also has other forms like Bitcoin, Litecoin, Ethereum, etc. As we employ several techniques to spot counterfeit currencies while transacting money physically, cryptocurrency has various encryption methods to authenticate the transfer of funds. The whole system of processing transactions of cryptocurrencies and maintaining the records of the value of each currency is called the Blockchain.
According to many tech visionaries, the blockchain is expected to completely replace all form of physical currencies with cryptocurrencies in future. But, The only question is that “What is so impressive about the cryptocurrency?” which seems to have the capability to replace something that has been over here 40,000 years.
Here are some of the most influencing factors of cryptocurrency,
No risks of theft or frauds:
As cryptocurrency is a digital form of currency, the system is encrypted, and the blockchain system ensures to maintain a unique identity signature for each user account. With this type of security, the chances of someone trying to steal your identity are almost nil. On the other hand, the moment you let someone else use your debit or credit card, you are prone to identity thefts and frauds.
A decentralized system:
The blockchain offers a decentralized platform for online transactions and record keeping, making it inaccessible to anyone for individual gains. This way, reliability and authenticity of the payment system are maintained. Also, this saves you the hassle of having to register on various payment gateways while making transactions on different platforms. You have just one cryptocurrency wallet that can be used on every platform straight away.
When compared to the present online payment gateways which have made us quite familiar to session timeout screens and have made us wait a lot at times to complete transactions, cryptocurrencies will speed up the payment process manifold. By transacting through blockchain, the transfer of funds occurs almost instantly.
These are the three most influential features as they offer to eliminate several shortcomings of the present online payment gateways. There are several other benefits of cryptocurrency that can come to light when one digs deep into the field.
Though, at the moment, it is too soon to say that Cryptocurrency is risk-free. As the system develops, there may be new threats to resolve. But, considering the encryption level offered, most of the risks can be eliminated easily.
Cryptocurrency seems to have a promising future and several countries and e-commerce businesses have also started to accept it as an alternative payment method. With the pace at which this system seems to be developing, it would not be surprising if it soon revolutionizes the face of online transactions.