A cryptocurrency wallet is similar to your normal bank account credit card. But unlike regular credit cards, a cryptocurrency wallet enables users to send, receive and buy crypto coins and even allow them to share or transfer coins to others. A physical NFC wallet card for cryptocurrency carries private keys and isolates them. All the cryptocurrency wallets contain the cryptographic private keys that are essential for encrypting the transaction. Meanwhile, Near Field Communication (NFC) technology covers the authorization process of crypto transactions through a smartphone. This new credit card that features both cryptographic private keys for encryption and NFC technology for authorizing the cryptocurrency transaction is called a key card or NFC wallet card.
- Role of NFC Field in Cryptocurrency Transaction
The purpose of using NFC technology for cryptocurrency wallets can be explained by sharing of coins or BTC balance from one wallet to another. Let’s assume an example of a Tangem card through which users can transfer BTC balance to any other wallet. According to Tangem working procedure, users first download the Tangem application from the store. After downloading the application, place the NFC-enabled mobile phone over the digital currency card to scan it. Select the ‘create wallet’ option and copy the address. The application will load the card and calculate the available coins or digital balance of the card.
If you want to send coins to this wallet, perform the same scanning procedure first and select the ‘extract’ option on the loaded card. Now paste the empty card’s wallet address, type the amount, and click on the send option. The final step is the authorization in which the user ‘tap & hold’ the loaded card to authorize the BTC transaction. The empty BTC card will be loaded with the transfer amount.
Subsequently, with only a few clicks and copy/paste job, users can send BTC coins from one digital wallet to another. And NFC technology makes the entire transaction process easy and secure. In short, when the user taps the credit-sized hardware wallet against the smartphone device, then the authorization of the transaction is monitored by NFC technology.
- Features of NFC-enabled Wallet Card for Cryptocurrency
- An NFC wallet’s function is to reserve the cryptocurrency coins and protect the digital assets, confidential information like secret text codes or important passwords.
- It can be carried easily due to its lightweight structure.
- The astonishing feature of these NFC cards is that they don’t require charging like normal wallet cards in the market.
- The presence of NFC technology behind these cryptocurrency-based wallets makes them contactless cards so that they can be used smoothly at anytime and anywhere.
- Another important difference is that they don’t require any registration procedure and agreement like a regular customer’s bank account.
- On its own, NFC wallet card is treated as an offline card and considered as cold storage for cryptocurrency coins, making the data more secure and isolated.
- Being a passive hardware device, the chip in cryptocurrency-enabled wallets following the NFC technology doesn’t interact with the environment.
- Types of Crypto Wallets
There are three types of crypto wallets; desktop wallets, hardware wallets and mobile wallets. Among them, hardware wallets for storing cryptocurrency coins are more protected as they’ve got a physical device to store private keys and public locations or addresses. Above all, hardware wallets show similarity with the normal financial credit cards, helping the users to use them flexibly to store different cryptocurrencies. Typical examples of these hardware NFC wallets that provide the storage for cryptocurrency are CoolWallet S,Keycard, Inigma Cold Wallet and Sugi Wallet.
- IC Suggest for Crypto Wallet Card: NXP NTAG® 424 DNA
The NXP NTAG®424 DNA ICs fully comply to NFC Forum Type 4 Tag specifications with enhanced security features. It sets a new standard for IoT and NFC applications and is ideal for cryptocurrency walletcardsd. Please visit here for more product information.
If you want to learn more about NFC and blockchain technology, check our previous blog post.