Numerous digital currencies use biometric account verification, and some of them reward users who use biometric authentication with free coins. The two use cases for biometrics in the market for digital currencies are wallet security and authentication of e-sign in transactions.
Biometric Protects Digital Wallets
Hot wallets and cold wallets are the two main types of wallets that are used to hold cryptographic keys. To prevent the theft, modification, and deletion of cryptographic keys from the wallet, both must be protected from hackers.
Tablets, cellphones, laptops, and desktops are hot wallets. They are more prone to being hacked. Such wallets can be secured using biologin. The most recent laptops, cellphones, and other smart gadgets are equipped with biometric scanners, including face and fingerprint readers. Yet, most people continue to use desktops and laptops without biometric scanners.
However, users who have Windows 7 and higher PCs can still use biological devices. It has the ability to protect the crypto keys kept on the device.
An external storage device, such as a USB drive, hard drive, or any other offline storage device, is referred to as a “cold wallet.” Since cold wallets are safer, investors that deal with a lot of cryptocurrency choose to employ this technique. These gadgets were previously secured with passwords and PINs, but there are still ways to make them more secure against hacks and theft, like biometric authentication.
The external cold wallet devices can be equipped with a biometric scanner to allow for more customized wallet authentication. Using peripheral biometric devices makes authentication simpler and eliminates the possibility of hackers. Other people cannot use the gadget even if their cold wallets are lost.
Using Biometrics to Sign the Crypto Transactions
Digital signatures and transaction verification are used to confirm cryptocurrency transactions. Using biometrics, documents can be digitally signed. These digital papers are signed by fusing the user’s information with either facial or fingerprint biometric data.
The aforementioned authentication method offers excellent security and transparency benefits while carrying out business operations. By requesting that users sign transactions using their personal information, it also protects consumers from illegal behavior.
What is the Future of Biometrics in Cryptocurrency
Despite the fact that most people are unaware of the technology underlying digital money, investments are surging. Expedia, Tesla, Microsoft, and other businesses have already begun to take Bitcoin and other cryptocurrencies in exchange for their goods and services. Additionally, a UK survey found that customers prefer to use digital currencies to make purchases at merchant stores.
The article has been published by the editorial board of the Identity Herald. For more information please visit www.identityherald.com.
