Bitcoin is a decentralized digital currency based on the principles of cryptography. This digital asset was designed to act as a medium of exchange, and employs cryptography to control its creation and management, as opposed to the common currencies whose management relies on central authorities. Satoshi Nakamoto, the Bitcoin legend, began working on the concept in 2007 by integrating many existing ideas from cypherpunk.

A post titled “Bitcoin: A peer-to-peer Electronic Cash system” was published on the internet under the name Satoshi Nakamoto in November 2008. According to the paper, users would have the ability to generate what was then described as “a system for electronic transactions without relying on trust.” Bitcoins eventually came into existence in 2009, with the currency’s founder mining the Genesis Block (first ever bitcoins blocks), which had rewards amounting to 50 Bitcoins. The value of the Genesis Blocks was decided by individuals on a bitcointalk forum which saw 10,000 BTC used in purchasing two pizzas.

Cryptocurrencies can be used to make money in two ways; Mining and investing. Cryptocurrency miners solve mathematical problems (mining) and are then awarded tokens as a reward by the network. Through this process, a miner records a validated transaction into the Blockchain. Senders pay their fees for transactions to be recorded within the Blockchain. When invested in, cryptocurrencies are no different from any stock or currency on the market. As with other products, cryptocurrencies are subject to market forces of demand and supply. Bitcoin investors face almost the same risk as their counterparts in the stock market, given that they aren’t insured, and their values fluctuate. Bitcoin’s predefined algorithms, however, play a crucial role.

Digital wallets are secure systems that store payment information and passwords of users for a range of payment methods and websites, and are designed to hold and use your cryptocurrency (digital currency). With the use of Near Field Communication technology (NFC), Digital wallets can be used to complete purchases even more easily and quickly. Users can also create secure passwords without worrying about remembering them later. Some mobile payments have incorporated the use of Digital Wallets, which allows users to pay for purchases directly from their Smartphones. Many digital wallets can also store digital coupons and loyalty card information.

The first generation Digital Wallets came into existence at the height of the dot-com boom. A variety of entrepreneurial companies developed early electronic payment programs but failed because of poor publicization. Moreover, most of these early electronic payment programs were offered by small and relatively unknown developers, and therefore had no aura of authority commanded by consumers when dealing with financial information. The first-generation programs came and went with little fanfare, sliding into limbo in the wake of the turn-of-the-millennium collapse.

Typically, a Digital Wallet is an electronic version of your current wallet. It will enable you to make electronic payments with your Smartphone and hide all your financial information. The Wallet uses digital certificates and encryption to authenticate purchases. This authentication technique secures the payment process from the customer to the merchant. Future Digital wallets with improved capabilities are expected to have features such as; conducting a comparison between items, paying bills, earning points through reward programs, connecting with household appliances e.t.c.

Most Digital Wallets exhibit common features. They include; Location-Awareness and services, comparison shopping, loyalty programs, virtual receipts and digital coupons. Nowadays, retailers are increasingly leveraging Mobile Wallet services to target consumers based on their proximity to a retail store, using NFC. Through the location aware services, customers can be reminded of in-store promotions and available offers, and thus help retailers to create brand awareness. Comparative shopping helps consumers save money in today’s highly competitive retail market. Mobile Wallet services let customers scan barcodes and keyword search to find the best deals and unbiased customer reviews on a broad range of products provided by local retailers. Loyalty credit accrual and redemption is a great opportunity for retailers, given that 89% of consumers carry at least one merchant loyalty program card in their wallet. Customer’s ability to collect, redeem and manage their loyalty programs has a great positive impact on their satisfaction.

In a bid to eliminate the entire paper process, retailers are rolling out virtual receipts, which are now being printed wirelessly or even emailed directly to customers. This enables a better track of receipts for both retailers and consumers to streamline future returns and exchanges as well as ensuring a faster and seamless checkout process. The use of mobile coupons is on the rise, as more retailers recognize the economic importance of offering digital coupons, promotions, and discounts through mobile applications. With Digital Wallets, consumers can easily carry and redeem coupons while enabling merchants to target a particular market segment by matching coupons to specific card users.

Digital Wallets require innovations of new ways for consumers to better utilize technology. Due to the constantly changing needs and expectations of tech-savvy consumers, Digital Wallet providers like Android Pay, Samsung Pay, and Apple Pay are putting strategies in place to meet them. The dynamic world of payments is pushing community financial institutions to consider taking a note from Digital Wallets and come up with new ways to keep digital offerings up to customer’s expectations.

Researchers have been taken to task by the predicted success of in-app purchases. A recent study by Juniper titled “Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities & Forecasts 2016-2021,” estimates that mobile sales with Apple and Android pay will hit $8 billion in 2018, up from the current sales value of $540 million.

According to McKinsey&company, approximately $200 billion is currently transacted through Digital Wallets, and further forecasted to reach $1.2 trillion (18 million transactions) or roughly 18-20 percent of total retail spending in the U.S. by 2020. There are key factors expected to motivate consumers to change the way they pay. These factors include:

  • Convenience of traveling without physical cards
  • A fast, seamless, user-friendly, and intuitive experience
  • Promotional offers and discounts
  • Security, reliability, and privacy

Our new and advanced blockchain-based Digital Wallet is about to change customer’s online shopping experience forever! Hitting the market on the 18th of April 2017, our revolutionary Digital Wallet comes with exciting new features and an easy-to-use interfaces with advanced functions also available. With 4-layer user verification and facial recognition, our application will be, unarguably, one of the most secure you can get. What is even more exciting is it’s ability to monitor the real-time price changes of Bitcoin (BTC), Ether (ETH), Zcash (ZEC), DinarCoins (DNC), and Gold Smart Contracts (GSC), and conduct trades with that knowledge.

Our new Digital Wallet will also accept credit/debit cards, NFC smartcards, and QR codes. So what are you waiting for? Find out more and sign up here and be among the first to explore the ultimate Digital Wallet.


 

References:

http://www.newyorker.com/business/currency/we-need-to-know-who-satoshi-nakamoto-is

https://bitcoin.org/en/bitcoin-paper

https://en.bitcoin.it/wiki/Genesis_block

https://www.quora.com/How-do-cryptocurrencies-work

http://www.investopedia.com/terms/d/digital-wallet.asp#ixzz4e8Padg8y

http://www.informit.com/articles/article.aspx?p=334035&seqNum=269

https://www.finder.com.au/digital-wallet-comparison

http://www.retailtouchpoints.com/in-store-insights/2522-5-mobile-wallet-features-that-promise-to-transform-the-customer-experience

https://www.juniperresearch.com/press/press-releases/online-purchases-via-apple-pay-android-pay-to-re

https://dashboard.tmg.global/contents/blog-pay-day-digital-wallets-to-see-significant-growth-in-next-two-years

http://www.blockchains.my/