Making commercial and financial transactions through networks is becoming very common every day. Thus we see how Bitcoin has become a disruptive technology, which is an innovation characterized by generating drastic changes that could cause the disappearance of some products or services in the market.
And indeed this seems to be, since Bitcoin is presented as a new form of currency since you can make deposits in custody, guarantees, intelligent property, conflict mediation, deposit insurance, which are shown as some of the services that Through the cryptocurrency are possible to perform.
It is also true that it is still premature to obtain convincing results, since it is in the process of developing and implementing the applications that will definitively modify our habits regarding the use of money, and some of these applications that revolutionize these habits are already they find among us acting in an open manner.
The Bitcoin Escrow and Two-Factor Bitcoin applications
Bitcoin Escrow and Two-Factor Bitcoin are already operating in the cryptocurrency market. We see in this case, that Bitcoin Escrow and Two-Factor Bitcoin are some applications that are written in java, they are free, they are open source, they travel with or without an internet connection. So thanks to these two applications we can trade with any person anywhere in the world, even with strangers, having the security and privacy that cases require, and most importantly, without having the need to have a company or institution that we indicate the steps to follow according to their operation mechanisms.
In the previous article titled What are the public and private keys of a wallet? The important and main features of the world of cryptocurrencies are the security they provide to the user when making any transaction, in such a way that the security and privacy of the user’s assets is vital, therefore the existence of the wallets.
In the case of Bitcoin Escrow, for example, what it does is encrypt the private key of a Bitcoin address behind three keys in an alphanumeric way composed of 106 characters. This private key, which is the one that gives access to the bitcoins, is obtained only when a person already has the three keys. Therefore, Bitcoin Escrow, allows the money involved in any transaction to be saved in any Bitcoin address and does not allow anyone to access it until the exchange operation has been satisfactorily completed.
This is how we can know in advance that the person who is transferring Bitcoins has the necessary money, also has the good faith, essential to finalize the business that is being done as agreed. Owning the three keys is a guarantee to be able to enable a third person, who would act as an arbitrator in the event of a problem or misunderstanding, within the framework of the transaction.
And in the case of Two-Factor Bitcoin is an application with characteristics similar to Bitcoin Escrow, what makes them different from each other, is that the first one, encrypts the private key after three alphanumeric keys, in such a way that an arbitrator is not necessary or third person in a negotiation. However, it is advisable to use Two-Factor Bitcoin as a method to keep deposits in protection, only if you have confidence in the counterparty, since if a fraud or fraud occurs, for example, the seller does not comply with the sending of the merchandise, the funds will not reach the hands of the scammer, but there is the possibility of not recovering those funds.
Two-factor Bitcoin allows you to send data from a private key without the risk of being intercepted, which is usually done, is to send the private key by e-mail or by mail plus the password that releases the private key through another way, which could be through a phone call, or an SMS, for example.
In any case for these and any other application that is related to Bitcoin, is that they should be practical and user friendly, as this would be key to encourage them to try something new and futuristic as Bitcoin. This phrase contains a great truth, and that is that “the best system or most perfect tool is useless if we do not know how to use it”.
What do you think about this topic? Did you know about the importance of privacy and security in transactions with cryptocurrencies?
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