Smart cards could be key to solving some existing blockchain mass adoption problem. Blockchain is a revolutionary technology that is disruptive in nature for various industries. This is a technology that is extremely beneficial for running bitcoin transactions and has a wide range of applications. As per Statista, the amount of investments made by the startups for Blockchain technology in 2017 was a little above $ 1 billion. So, first let us understand “What is a Blockchain?”.
Blockchain is comprised of distributed ledger technology that maintains a dynamic list of records. A Blockchain helps to create secure and faster applications – that follows stringent security requirements. It is secured in nature and offers no chance of any tampering of the records. Moreover, it can be used as a distributed ledger – that records financial transactions – to be verified cryptographically.
As the Blockchain technologies evolve and grow, there are many applications that are implemented with the help of this technology. These applications will start from cryptocurrencies up to fund transfers, autonomous IoT device payments, asset registries.
However, for the entire range of applications, there is a critical need for the proper management of cryptographic keys. This becomes more useful because if in case these keys are stolen, then the Blockchain assets will be lost forever- with no chances of recovering them whatsoever. These cryptographic keys are managed by the smart card technology. This smart card technology helps convenient and secure transactions.
In this post, we will educate you on how the smart cards will be related to the Blockchain technology. First, of all let us find out “What is a Smart Card?”.
What is a Smart Card?
The smart cards are basically chips and have data that is read by the machines. They have the ability to store huge amount of data and incorporate data reading and writing technologies. Most of the cards that we use today of the likes of debit/credit cards, the hotel key cards etc. all have embedded smart cards inside them. In fact, these are embedded microprocessors that allow smooth transactions. Not only that, the users can carry the Smart Cards in their pockets, while traveling.
The smart cards have excellent computing capabilities and they offer the best option for solving Blockchain problems. The main areas in which the smart cards find their use start from security, to ease of use up to scalability.
So, undoubtedly the Blockchain developers are looking for unique ways to integrate these smart cards in the Blockchain apps that they intend to develop.
Next, we will highlight on “How Useful are Smart Cards for Blockchain Applications?”.
How Useful are Smart Cards for Blockchain Application?
The smart cards as we understand are extremely useful for the Blockchain application developers and in some of the following ways:
Customizable and Safe Data Storage
We have already stated above that Blockchains are distributed ledgers of financial transactions – that which are verified without the presence of any central authorities. A good example to cite on the application of smart cards on a Blockchain based app is that of carrying out of Visa transaction – without the need for the Visa company or any bank that is associated with the transactions.
Offers Excellent Scalability
This was the greatest innovation for the world’s first e-residency application for Estonia. It was possible for the Blockchain developers to set e-residency cards – by the help of public-key cryptography. The owners of the residency cards have the access to a host of services from the Government.
The smart cards incorporated by the Blockchains app help in solving problems on fees and processing times. The citizens can perform various tasks like online banking as well as casting of votes. Moreover, taxes can be filed and this ultimately offers a highly secure application – with decentralized users. This throws light on how smart cards can be used to solve other business issues as well.
Supports Blockchain Security Issues
The Blockchain app developers often face security issues – pertinent to the technology they are working on. These developers need to utilize the private and the public keys in a cheaper and safer way. The private keys are to be stored on the smart cards – because they need to be separate from the public keys.
The smart cards have low power use and can safely store – multiple user keys. This is the way the smart cards surpass other digital data devices. Moreover, the integration of smart cards find applications in use cases like USBs, wearables and other devices ensuring the security of the transactions.
We conclude to say that the Blockchain applications when implemented with smart cards are sure to fetch the revenue for the client’s business and thereby help in customer retention. Despite the drawbacks of the smart card technology, it is sure to find applications in areas of smart contracts and e-commerce – contributing to decentralized global trade in the future.