What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash saved and moved in digital kind. Sounds simple enough, but how does it all work?
This type of currency is thought to be good to use for making purchases on the internet because if it works the way it was suggested to, transactions ought to be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to gather personal information from people who utilize their charge card to make online purchases. This would clearly reduce the variety of taken identities that happen every day.
To assist you understand more of, “what is digital currency?” I have done a fair bit of research study on the subject and have found that there are a number of various types out there, each with it’s own special qualities.
Here are just a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold supplies an extra step of security and if you hold this type of currency, you might potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies allow you to send out money all over the world as long as you have money in the account. For some services offered by these kinds of business, you get charged a cost on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like using cash to make your deal but your deal is non-refundable when made. This kind of system only works in one direction.
The E-cash concept has evolved along with the evolution of the Web. People just do not feel comfy with giving their individual charge card information online when buying.
Too many bad things can occur like identity theft. Nobody wants their identity taken.
Many business have actually attempted to create this type of payment or financial system to reduce the threats of shopping online.
Lots of nations have effectively created systems for “in-house” use such as Hong Kong’s Octopus card. This card works similar to a sort of debit card where the user loads cash onto the card and after that all the money is deposited into a bank. They can then use the card for anything they require to use it for.
Some countries are working on or have systems that permit the user to move money through mobile phones. I believe this is somewhat like what Chase lets their customers do. Their consumers can take an image of their check, front and back, with their phone and make their deposit electronically.
I do hope that this gives you some idea of what is digital currency and how it is attempting to take it’s place in the world of e-commerce. There may be a little bit more to it than I might describe in just one little post however I think you can get an excellent idea.