Blockchain Debit Cards Will Impact The Financial Service Industry Infinity Blockchain Labs

Blockchain Debit Cards Will Impact The Financial Service Industry

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November 17, 2017

While blockchain first gained attention for facilitating Bitcoin, the revolutionary cryptocurrency, fintech companies are using blockchain technologies for an increasingly diverse amount of services and products. Blockchain allows for data to be stored as blocks on a decentralized, fully transparent ledger. This means all transactions can be monitored by anyone, and thus become immune to manipulation.

Further, the technology removes the need for costly, time consuming third-party oversight such as governments, which increases the speed and reduces the cost of transactions. These qualities are attractive for any number of industries, but in particular financial services. One especially exciting use of blockchain fintech involves Debit cards.

Vulnerabilities Current Financial Service Industry

The financial services industry is facing an increasing amount of serious cybersecurity threats from individuals and companies across the world. The hackers typically focus on stealing personal data for identity theft purposes. Retail and restaurant payments systems are also attacked for the same reason. The unfortunate reality is that anytime you choose to use a debit card, your sensitive financial information is at risk.

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Blockchain fintech - Blockchain Credits Card Will Impact The Financial Service Industry

How debit cards can rely on blockchain fintech ?

Just like other debit cards, cryptocurrency debit cards are loaded with funds from linked digital eWallets and can be used wherever a debit card is accepted. In the U.S, most card type systems are available in US dollars, British Pounds, and Euros. Digital currency debit cards like Coinbase’s allows users to buy digital currency units or pull Bitcoins from their digital wallets directly, hence saving customers the need to keep their digital wallets separate from the card’s wallet.

There are many kinds of debit card such as  Cryptopay Debit Card, SpectroCoin VISA Debit Card, Bitwala Visa Debit Card , Shift, and bitpay. It’s easy to load your Bitcoin Debit Card with funds from your Bitcoin wallet and spend virtual or traditional currencies anywhere Visa cards are accepted. Bitcoin debit card works online, offline, and internationally, making it simple for customers to use bitcoin at millions of businesses around the world.

Safe and secure online purchases and withdrawals at any ATM around the world can be made by bitcoin debit card. It is also possible to quickly and easily create a shopping cart to accept Bitcoin payments on your website. No id / do not require mandatory debit check to get debit card. The process is simple, just tell us where to ship your card, pay with bitcoin online, and your card will be on it is way.

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The Power of Compliant Blockchain & FinTech to Evolve the Way People Spend Money

So How Does Blockchain Fintech Improve Debit Card Security?

For debit card payments, the private key will locked your data in the safe place. The key is on your hand, and cryptographic “house” is strong to protect you from any hack unless they key is shared with anyone. It takes an enormous amount of computational power for a hacking attempt. Once the valid transaction recorded in the digital ledger, it is immutable, meaning no one can go into the particular block or group of blocks and arbitrarily reverse the transaction.

On the other hand, current payment systems and financial services databases that do not involve blockchain fintech application lack that protection. Hackers can intervene at any step to any step in the process of transaction not only from the merchant to the payment processor’s bank but also from the debit card issuer. In addition, hacker can also attack your bank and stole any database where your information is stored.

Using a blockchain debit card not only removes at least one of the intermediaries, thus reducing the risk of a data breach, but it also decreases the transaction costs since each institution in a regular debit card transaction collects a fee. An added layer of security exists if the fintech relies upon a private or permissioned blockchain. This allows only preapproved nodes – or participants – to approve and validate transactions.

However, this does not relieve the debit card holder from practicing robust cybersecurity protocols. Hackers will use phishing scams and other deceptive attacks to gain access to your private key. While blockchain fintech provides a more secure protocol for digital transactions, it’s still entirely up to the debitcard holder to protect their private key and refrain from revealing it to anyone. The first line of defense against a cyberattack still remains in the hands of the debit card holder.

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