Biometrics refers to the use of unique biological characteristics for identification and authentication. In this space, it often involves features like fingerprints, facial recognition, or iris scans. The integration of biometrics enhances security for digital wallets and transactions.

Rather than relying solely on passwords or private keys, users can access their cryptocurrency accounts using their fingerprints or facial scans. This method adds a layer of protection against unauthorized access, making it harder for hackers to compromise accounts.

Moreover, biometric systems can streamline the user experience by providing quick and easy access. Users do not need to remember complex passwords, leading to a more efficient way to manage digital assets. However, the use of biometrics also raises concerns regarding privacy and data security.

Storing biometric data requires robust protection measures, as any data breaches could lead to identity theft or loss of assets. Overall, biometrics in this space represents a promising approach to enhance security while improving user convenience.