Encryption is the process of encoding information so that only authorized people can access or interfere with it. The first known evidence of Encryption dates back to 1900 BC. An inscription carved in the main chamber of the tomb of the nobleman Khnumhotep II, in Egypt, used some unusual hieroglyphic symbols  to  change it’s form to  make it appear dignified.

Fast forwarding to around 100 BC, Julius Caesar used forms of encryption to pass secret messages to his army generals at war, a form now known as Caesar cipher. Vigenere designed a cipher during the 16th Century which used an encryption key that was repeated many times spanning the whole message, and then the ciphertext was generated by addition of a message character with modulo 26.

By the 19th century, when everything became electric, Hebern designed the Hebern rotor machine that used a single rotor and a secret key embedded in a rotating disc. The key encoded a substitution table; each press of the key from the keyboard would output cipher text.

During the Second World War cryptography was used for military purposes to conceal secret military information. However, post-war commercialization of cryptography emerged; and was used in securing data among competitors.

In the early 1970’s, IBM realized that their customers were demanding some form of encryption. They designed a cipher called Lucifer. Lucifer was in 1973 accepted and was called DES or the Data Encryption Standard. Plain text messages could be obtained as computing power increased.


A blockchain is a distributed public ledger of transactions, a chain of information broken up into blocks of data whereby bitcoins and other cryptocurrencies use cryptography through the blockchain as a conduit. Each block of data represents a transaction of currency which helps you to track of each transaction. Public – private key encryption protects data and it’s data accessibility and therefore helps to prevent data theft.

Blockchain Banking Applications

The evolution of bitcoin’s mechanisms has been acknowledged by banks, for example CitiBank, by exploring cryptocurrencies and blockchain technology as a positive impact for future banking innovations. Blockchain encrypted transactions are registered in an authenticated ledger system which allows individuals and banks to transfer assets worldwide in a secure and traceable manner that is secure from theft and hacking.

Removal of intermediaries: Blockchain technology uses an automated intermediary system by removing the need for the current system of centralized ledgers. The blockchain uses a decentralized trust model not dependent on a single entity.

Dividends and shares: Blockchain technologies are also geared to accommodate the issuance of shares and dividends.  For instance, in the USA, a blockchain keeps a record of every transaction and it’s owner throughout it’s lifetime.

The Blockchain as a Proof Chain: Since any type of information can be encrypted and placed within the blockchain, it acts like a database. The trust levels are increased because the transactions are verified by a community of users and not a single entity, whereby each part of the block in the chain is individually and cryptographically signed.

Digital Wallet

A digital wallet is digital device that lets you make electronic payments with your credit card or digital cash and hides the actual credit card information. In other words, a digital wallet is an electronic device that allows an individual to make electronic transactions. Digital wallets authenticate your transactions with encryption, making the payment process safe and secure.

Features of Digital Wallets

  • Comparison Shopping. Today’s retail space is becoming increasingly competitive. Digital wallets enable users to save money through a keyword search and scanning barcodes for the best deals. Shoppers can also access reviews on a range of products,  which helps in shaping their purchasing decisions.
  • Location Aware Services. Digital wallets allow retailers to target customers based on proximity. Customers can be reminded of in-store promotions and existing offers with relative ease. This has played a big role in driving sales and building brand awareness.
  • Security. Digital wallets have a number of security measures. These measures include; encryption for every transaction, zero liability protection, or some insurance for purchases. It also has safeguards in place to only bill you once if you mistakenly tap twice.
  • Payment method. Digital wallets can also utilize NFC (Near Field Communication) Smart Cards which can ease payments, by making them quick and convenient. Through the digital wallet, you can make bill payments on behalf of a user and schedule any bill payments when they’re due.
  • Online shopping. Most digital wallets are accepted by major online retailers. This eases the purchasing process for users as they do not need to enter their credit card details every time they buy on the internet, but instead simply enter a username and password.
  • Loyalty Programs. A digital wallet allows the linking of reward programs to enhance real-time reporting of points accrued from credit cards. Customers can collect, manage, and redeem their loyalty program points.

Advantages of Digital Wallets

  • Smarter than your regular wallet. Apart from organizing your finances, digital wallets enable keeping of coupons without bulking your physical wallet. And it enables many online functions you would otherwise not be able to perform, such as online purchases and currency trading.
  • Easily manageable. Allows easy management of notes and coins and forms of identification by centralizing them into one place.  
  • No fees. Electronic payments eliminate the need to carry out banking activities through a branch. Therefore, you can save on fees such as service charges, overdraft fees and pay minimum prepaid card fees.


  • New technology. Since digital technologies have not reached critical mass among customers, thus, digital wallets can’t yet be used everywhere for everything.
  • International Restriction: It can be a great challenge for those who travel to different countries regularly, since different countries have different services and thus different digital wallets. This of course applies to wallets with limits available assets.
  • Dependent on the Devices: Digital wallets can only be used online via devices such as laptops which can be lost, become unreachable, or suffer battery related problems. Consequently, digital wallets cannot out do debit and credit cards.
  • The Future of Blockchain Technology

Cryptocurrencies and their associated blockchain technology are being taken seriously by the banking sector. The Analysts Greenwich Associates surveyed financial professionals and found that 94% of those professionals believed that technologies like the blockchain would be important to institutional markets and that at least half of those professionals were actively involved in the exploration of the use of cryptocurrencies and blockchain technology. The efficiency, security, and faster processing systems enabled by blockchain technology are now proving very lucrative and critically important.