Biometrics and crypto are a combination of utmost importance in securing digital assets. This article will discuss the use of biometrics in the cryptocurrency space.
The rise and spread of cryptocurrencies in modern society has skyrocketed in recent years, owing to the exceptional success of only a few prominent currencies.
One of the biggest reasons many people haven’t acquired crypto is that it isn’t generally accepted in many popular venues and stores.
Because of how cryptocurrencies are intended and utilized, privacy and security are fundamental characteristics that may not always be compatible with how many physical establishments function.
This issue can be readily resolved with biometric sensing technology, such as the equipment and services provided by IDEX Biometrics.
Let’s quickly get an understanding of what biometrics is about.
What is Biometrics?
Biometrics is a technology that identifies a person based on the measurement and statistical analysis of their unique physical or behavioral traits.
It usually refers to procedures such as facial recognition, fingerprinting, hand geometry analysis, iris and retina scanning, and DNA testing.
Also, at the moment, modern biometric technology can measure extremely complex inputs for identity verification, for example, from advanced biometric modalities such as the heart, palate, veins, or odor.
Biometrics is now seen as a vital phenomenon, the best instrument for authenticating persons in a trustworthy and timely manner, and a key to anchoring decentralized digital identification (DID).
Additionally, experts argue that mobile biometric identity verification and biometric remote onboarding, which have recently become popular trends, will continue due to globalization and the pandemic, resulting in a biometric industry boom.
According to Italian scholars’ research, the most credible biometric verification techniques are iris scanning and facial recognition, with liveness detection defined as the identification of unique live users who can be distinguished from photographs, deepfakes, or masks.
Before heading into biometrics and crypto proper, let us see some of the benefits of biometric authentication.
Benefits of Biometrics
The use of biometrics offers a wide range of advantages, some of which include:
- Uniqueness and non-repudiation
- Convenience
- Increased security
- Reduced risk of sharing credentials
- Improved user experience
Uniqueness and Non-repudiation
Each individual’s biometric data is distinct, making it impossible for unauthorized users to acquire access.
It also enables non-repudiation, meaning individuals cannot dispute their acts because their biometric data identifies them with the activity.
Convenience
Unlike passwords, which are easily forgotten or lost, biometric data is constantly available and does not require memorization. This simplifies the authentication process for users.
Increased Security
Biometrics are difficult to forge or steal. Passwords can be hacked in various ways, but gaining unauthorized access to someone’s biometric data is much more difficult.
Reduced risk of sharing credentials
Passwords are frequently discussed or written down, which raises the risk of unwanted access. Biometric authentication requires an individual’s unique attributes, which reduces the chance of sharing.
Improved User Experience
Biometric authentication provides a seamless and user-friendly experience. This is especially significant in today’s society, as user experience is critical in technology adoption.
Now, let’s dive into biometrics and crypto.
Biometrics and Crypto: Why Do We Need Biometrics in Crypto?
Biometric sensors have been used in applications where privacy and security are crucial, such as fingerprint-scanning devices that open locked doors.
Fingerprints are unique to each person, making it much more difficult for someone to impersonate you and get access to sensitive areas or steal financial assets.
In many aspects, using biometric scanners and modules for cryptocurrency transactions is no more sophisticated than using a credit card. Therefore, no additional processing time is required.
With the easy press of a finger, the customer can transfer funds from their crypto wallet to the establishment without any difficulties or lengthy transfer processes.
Biometrics and Crypto: Is this Combination Secure?
Yes, it’s secure. Biometric scanning technology functions similarly to a debit card for a traditional bank account.
Still, instead of a card linked to a bank, the user would have one of the most secure forms of individual identification linked to an untraceable and encrypted cryptocurrency wallet.
Because of the way the wallet is generally protected against fraud and exposure and the fact that each fingerprint is unique, the chances of someone else gaining access to your account are slim to none.
Due to cutting-edge scanning equipment, transaction times are also kept to a minimum.
Biometrics and Crypto: How They Factor into Crypto Wallets
Biometrics and crypto are a great combination for wallets. Crypto wallets that incorporate biometrics are an excellent way to protect your finances.
As a customer, you have the right to know how your cryptocurrency wallet ensures security. Biometrics rely on who you are (such as your face or voice) rather than something that can be hacked or falsified.
It would be best to look into cryptocurrency wallets and financial service providers using biometric technologies to verify and confirm your identity.
Restricting access to cryptocurrency wallets to passwords is problematic for more than just the possibility of password theft. Passwords may also be forgotten.
For example, Stefan Thomas, a San Francisco-based programmer, has forgotten the password that grants access to a $220 million Bitcoin wealth.
And, as bad actors’ tools, technologies, and strategies for cracking passwords (even if you don’t forget them) have evolved rapidly in recent years, PINs, passwords, passphrases, and challenge questions are no longer reliable.
Let’s examine the importance of the combination of biometrics and crypto in the cryptocurrency space.
The Importance of the Interaction of Biometrics and Crypto
Some of the importance of the integration of biometrics and crypto are:
Strong Currency Authentication
Digital currencies, of which cryptocurrencies are part, must comply with PSD2 banking regulations, which require Strong Customer Authentication (SCA) to validate users at the moment of transaction.
From September 14, 2021, SCA was required for all financial transactions in the European Economic Area to reduce fraud and increase client security.
SCA effectively means demanding two kinds of verification for every transaction that exceeds the contactless limit.
To transfer or pay with digital currencies across Europe, consumers must confirm additional security information, such as a password or PIN, or perform physical biometric authentication.
Passwords and PINs are becoming unsafe; thus, people are concerned about potential banking fraud.
The payments industry must use fingerprint biometric authorization for cryptocurrency transactions to protect customers.
It also increases consumer and issuer confidence in a digital transaction if it is completely validated, encouraging the populace to use national digital currencies.
Seamless Integration of Cryptocurrencies
Consumers must still be more open to embracing cryptocurrency. As they become more widely utilized as legal cash, banks, and payment providers must ensure that the general public may easily access them.
The thought of a digital wallet can seem frightening. It can be challenging to withdraw current crypto funds, and many shops are still unprepared to process such transactions.
Once there is a smooth way to exchange digital money for products and services, the public will likely show much interest in or use of the currency. A biometric payment card can address this issue.
By adding fingerprint authentication to payment cards and allowing them to be filled with cryptocurrency, the payment procedure will become shockingly similar to the one we are already used to.
Biometric authentication enables customers to pay with crypto securely, quickly, and without hassles, allowing for the smooth integration of cryptocurrencies into our daily payment procedures.
Final Thoughts
As cryptocurrencies gain popularity, utilizing currency wallets in local enterprises will be vital for maintaining growth and gaining widespread acceptability.
Because cryptocurrencies are intended to be secure and private, the most apparent way of transaction would be through biometric sensors.
Non-biometric cards might be used for this purpose, but they are not safe enough to prevent your wallet from being compromised. By tying a wallet to a set of fingerprints, you ensure that only you can access your account.
In addition, the deployment of biometric sensor modules in traditional establishments will not only provide security.
Still, thanks to the sensors’ fast scanning capability, transactions using cryptocurrencies, such as debit cards or cash, will be quicker than usual.
So, we can say that the combination of biometrics and crypto is a welcomed development.