What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash saved and transferred in digital kind. Sounds simple enough, however how does it all work?
This kind of currency is believed to be great to use for making purchases on the internet since if it works the way it was implied to, deals must be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer have the ability to collect individual information from people who utilize their charge card to make online purchases. This would obviously decrease the variety of stolen identities that take place every day.
To help you comprehend more of, “what is digital currency?” I have done a fair bit of research on the subject and have discovered that there are a number of various types out there, each with it’s own unique qualities.
Here are simply a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold provides an additional step of security and if you hold this type of currency, you could possibly directly exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these business enable you to send cash all over the world as long as you have cash in the account. For some services offered by these types of companies, you get charged a charge on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Also called Hard Electronic Currency, it is meant to be more like using money to make your transaction however your transaction is non-refundable as soon as made. This type of system only operates in one direction.
The E-cash concept has progressed together with the development of the Internet. People simply do not feel comfortable with providing their personal credit card details over the Internet when making a purchase.
Too many bad things can happen like identity theft. No one desires their identity taken.
Numerous companies have tried to produce this type of payment or monetary system to reduce the dangers of shopping online.
Numerous countries have actually successfully developed systems for “internal” use such as Hong Kong’s Octopus card. This card works much like a sort of debit card where the user loads money onto the card and then all the money is deposited into a bank. They can then utilize the card for anything they need to utilize it for.
Some countries are working on or have systems that enable the user to transfer money through mobile devices. I believe this is somewhat like what Chase lets their clients do. Their clients 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 attempting to take it’s place on the planet of e-commerce. There might be a little bit more to it than I could describe in just one little post but I believe you can get a good concept.