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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and moved in digital form. Sounds basic enough, but how does it all work?
This kind of currency is thought to be great to use for making purchases on the internet since if it works the method it was suggested to, transactions need to be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to gather personal information from individuals who use their charge card to make online purchases. This would undoubtedly reduce the variety of stolen identities that occur every day.
To assist you comprehend more of, “what is digital currency?” I have actually done a fair bit of research on the subject and have found that there are several various types out there, each with it’s own unique qualities.
Here are simply a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold offers an extra measure of security and if you hold this kind of currency, you could potentially directly exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these companies enable you to send out cash all over the world as long as you have cash in the account. For some services supplied by these types of business, you get charged a charge on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Also called Hard Electronic Currency, it is planned to be more like using cash to make your deal but your deal is non-refundable once made. This kind of system just works in one direction.
The E-cash concept has evolved along with the development of the Web. Individuals simply do not feel comfy with offering their individual credit card info online when buying.
Too many bad things can occur like identity theft. No one desires their identity stolen.
Many companies have actually attempted to create this type of payment or financial system to lessen the risks of shopping online.
Lots of countries have successfully created systems for “in-house” usage such as Hong Kong’s Octopus card. This card works just like a sort of debit card where the user loads cash onto the card and then all the money is deposited into a bank. They can then use the card for anything they need to use it for.
Some countries are dealing with or have systems that permit the user to move money through mobile phones. I think this is rather like what Chase lets their consumers do. Their customers can take a picture of their check, front and back, with their phone and make their deposit digitally.
I do hope that this provides you some idea of what is digital currency and how it is trying to take it’s place on the planet of e-commerce. There may be a little bit more to it than I could explain in just one small article however I believe you can get a good idea.