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What is NFC and How Does It Work

Cristina MaciasBy Cristina MaciasOctober 13, 2021No Comments3 Mins Read
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What is NFC and How Does It Work
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NFC technology has recently gotten a refresh with the introduction of new devices such as the AirTags, crypto wallet cards and contactless payment solutions.

Table of Contents

  • NFC and You
  • The Workings of NFC
  • NFC’s Most Recent Application – Cryptocurrency
  • The Future of NFC Technology

NFC and You

NFC stands for near field communications and offers short-range device transfers. The usual setup is that one is transmitting the data while the other is waiting to receive it.

There are a lot of devices that use NFC technology, with mobile phones being the most common.

NFC can be classified under active or passive. Passive forms of NFC include tags and are usually standalone material that do not require a power source or charging. Examples include interactive signs and advertisements that lead the user to a webpage or online video.

Active NFC is one found in smartphones and can receive and send data. Other examples include touch payment terminals, public transport cards and crypto wallet cards.

The Workings of NFC

To understand how NFC works you can relate it to how Bluetooth and Wi-Fi works. In simple terms, devices that have them can send out information wirelessly.

These technologies mainly use radio waves to send and receive data. NFC has three communication modes:

Peer to peer. This lets two NFC-enabled devices ‘communicate’ with each other and send information between each other.

Read/write. Is a process where information is sent only one way. NFC tags are scannable via smartphone and let the user to another portal, such as a website.

Card emulation. Usually for contactless card payments to gain entry into public transportation or in exchange of goods.

NFC’s Most Recent Application – Cryptocurrency

Due to having practically endless applications, NFC is now one of the most interesting communication medium the world has ever seen.

In the world of cryptocurrency, NFC can be tapped to provide convenience, specifically the transferring of digital assets in the real world.

Cryptocurrencies such as Bitcoin, Ethereum and others are gaining ground. They are now accepted forms of payments in a growing list of brands, businesses and establishments. NFC can serve as the bridge between the digital asset to the physical goods or service through a simple process.

A user, for example, can transfer his winnings by investing in Bitcoin and signing up on bitcoin-berlinapp.com/de/login to grow his cryptocurrency. After a successful trade, he can put some of his Bitcoin in an NFC-enabled wallet card and bring it with him. Then, when he wishes to make a purchase he can use the digital wallet card and tap it into a waiting terminal to complete the transaction.

This process simplifies matters and eliminates having to transfer the Bitcoin to a bank account or using a crypto exchange to turn it into fiat currency. With NFC, all it takes is a simple tap and the transaction is made.

The Future of NFC Technology

NFC is popular and can continue to be so in the next few years. Improvements, such as better security and more applications can make things easier and more convenient not just for consumers but for businesses and organizations as well.

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Cristina Macias
Cristina Macias

Cristina Macias is a 25-year-old writer who enjoys reading, writing, Rubix cube, and listening to the radio. She is inspiring and smart, but can also be a bit lazy.

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