Cryptocurrency’s growth has been facilitated by improving technology and connectivity, creating a synergy that has benefitted multiple online industries.

Consumer behaviors are moving towards digital dependency as convenience, choice, and value for money can all be offered. As more people move towards online transactions, the demand for quick and safe transactions increases.

Gambling expert Joe Napier discusses the popularity of fast payout casinos, explaining that those that allow crypto payments can offer the most competitive speeds for players to enjoy their winnings – sometimes within a few minutes. And, crypto is also increasingly being used by those sending funds abroad – Ripple (XRP) transactions take on average 4 seconds no matter where the money is being sent. This is a huge improvement over traditional international transfers, which can take up to 5 working days.

As more retailers and operators start to accept cryptocurrency as a payment method, it is important for consumers to understand the technology behind it and why it can offer a safer way to trade online.

Cryptography Explained

crypto trading on tablet with keyboard

Cryptography is the process of sending and receiving encrypted data and messages between parties. Encryption obscures the content being sent so third parties are unable to read it. The receiving party then decrypts the message so it is legible.

The word “crypto” is Greek for secret, meaning cryptocurrencies offer a more anonymous way of carrying out online transactions. Users can make payments without having to give businesses or third parties sensitive data to process their transactions.

As well as being an essential part of crypto transactions, encryption is used in many other facets of online activity including simple search engine searches and emails.

How Public-Private Key Encryption Works for Cryptocurrency Transactions

The inception of cryptocurrency in 2009 saw the idea of a decentralized currency that could be transferred digitally. One of the biggest issues Satoshi Nakamoto (the founder or founders of Bitcoin) faced during this process was configuring a process that would allow transactions to take place without a double-spend problem.

Double spend is the theory that users could make multiple copies of Bitcoin code as the currency is not a physical asset. The solution was to make use of public-private key encryption.

Public-private key encryption uses an encryption method that creates two keys for the data. One is a private key that can decrypt data encrypted with public keys.

The key used to decipher this data is a piece of information that scrambles data. When it is sent it arrives as plaintext which would appear to be random data unless decrypted by the correct key on the other side.
SSL and TLS use public key cryptography to establish secure connections via HTTPS. SSL/TLS certificates are shared publicly with the public key, while origin servers contain the private key.

Why Cryptography is Important

The importance of cryptography in online transactions and cryptocurrency should not be underestimated. It provides users with significant levels of security and allows crypto transactions to take place and be recorded on a blockchain.

A blockchain is a public ledger that displays all transactions, providing users with transparency and protecting against fraudulent activity.

Cryptocurrency Transaction Speeds in Online Industries

The online betting industry is a great example of how cryptocurrency can benefit online operators. The rise of online gambling has grown parallel to that of cryptocurrency, as a result, many operators adopted crypto from a relatively early stage.

As one of the first industries to embrace cryptographic technology and cryptocurrencies as a payment method, the betting industry has benefitted from its popularity.

Cryptocurrencies offer the quickest way to deposit and withdraw money from online casinos. In a highly competitive industry, offering a variety of payment methods can help casinos appeal to more consumers, and the ability to enjoy fast withdrawals can be a big draw for new customers.

The first factor that will impact how quickly someone will be paid out by any casino, retail business, or other online industry is how quickly it is processed.

Many online operators must adhere to anti-money laundering regulations, and this can hold up payments. Other security checks can also be an issue at this point.

When a payment has been processed, the payment method will then determine how quickly funds are transferred. Cryptocurrencies offer the fastest transaction speeds, and the only thing that might slow down this process is how congested the blockchain is at the time of processing.

Crypto payments can take just seconds to go through and they are not affected by the time of transaction, weekends, or bank holidays.

Traditional payment methods like credit cards or bank transfers can sometimes take a bit longer, with estimates of one to five working days in some cases. This can cause frustration for consumers who are living in an increasingly fast-paced digital world.

Other Benefits of Cryptocurrency Transactions in Online Transactions

As well as offering the fastest withdrawals of any payment method, cryptocurrencies also offer a range of benefits including additional security, anonymity, and transparency.

Providing online services with sensitive data can be a gamble, even legitimate businesses can suffer security breaches that affect their customers.

Using cryptocurrencies allows consumers to make payments without providing bank information or other details that could be used by cybercriminals. This level of anonymity is also great for people who want to shop, bet, or carry out other transactions online without leaving a trail.

The recording of all crypto transactions on a blockchain also provides greater transparency for users. The online betting industry shows how this can help consumers determine the most reliable online operators.

Bettors in areas that prohibit or limit online betting can often look to offshore operators as a way to place bets legally. Licensed offshore betting sites can offer a secure way for people to enjoy casinos not on Gamstop and a wider selection of markets, but choosing the right one can be challenging.

Blockchain ledgers make it easier for consumers and regulators to check which betting sites operate in a fair way, as all the bets and results can be seen.

Cryptocurrencies also offer users a great way of using international sites without the confusion and cost of dealing with currency exchange rates.

Quite often, online consumers find they have to sacrifice security for speed or better deals, cryptocurrency appears to offer the best of all worlds, making it a great choice for online transactions.



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