The risk that comes with the convenience
As contactless payment technology is steadily integrated into devices, demand is increasing. Digital payments have their setbacks, such as online fraud and security vulnerabilities.
The convenience of contactless payments comes with privacy and security risks. Since the user does not need a PIN, a stolen device or lost credit card can enable a criminal to access the account quickly. When there are no security features on the phone, it can be very convenient for anyone to make purchases without being detected.
Blockchain Technology ⛓
Blockchain technology uses a distributed ledger to store and update transactions in real-time. The data cannot be tampered with because every transaction on a block is timestamped. Furthermore, since the data is encrypted, no one can alter it. Therefore, blockchains promote the security and trust of transactions for both buyers and sellers. Payments made through a blockchain-based system are fast, secure, and contactless, and there is also trust between both parties.
How does it work?
To better understand this, consider a cash note with an encrypted ledger. Throughout its lifetime, it records all transactions made on it. You can see the note's transaction history and determine whether the person giving you the message is trustworthy enough to conduct a business transaction.
The blockchain provides an additional layer of security and trust to ensure that all parties are satisfied and secure after a transaction.
Thanks to blockchain technology, financial transactions can be made faster, more transparent, and more secure. As businesses adopt the technology, the government can form advanced solutions that replace traditional systems and ensure security, faster payments, and a negligible number of fraudulent payments.
As well as supporting an array of public and government sector applications, blockchain technology can also support digital payments, identity management, land registration, healthcare, and supply chain traceability.