What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and moved in digital form. Sounds easy enough, but how does it all work?
This kind of currency is believed to be great to utilize for making purchases on the internet because if it works the method it was suggested to, deals must be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer be able to gather personal information from individuals who use their charge card to make online purchases. This would certainly decrease the variety of stolen identities that take place every day.
To help you understand more of, “what is digital currency?” I have actually done a fair bit of research on the subject and have actually found that there are numerous different 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 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 money in the account. For some services offered by these kinds of business, you get charged a charge on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is intended to be more like utilizing cash to make your deal however your deal is non-refundable as soon as made. This type of system only works in one direction.
The E-cash idea has actually evolved in addition to the advancement of the Web. People simply do not feel comfortable with providing their personal credit card details over the Internet when purchasing.
Too many bad things can take place like identity theft. No one desires their identity stolen.
Many companies have attempted to create this type of payment or financial system to reduce the risks of shopping online.
Numerous nations have effectively developed systems for “internal” 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 transferred into a bank. They can then utilize the card for anything they need to use it for.
Some countries are dealing with or have systems that permit the user to transfer money through mobile devices. I believe this is somewhat like what Chase lets their customers do. Their consumers can take a photo of their check, front and back, with their phone and make their deposit digitally.
I do hope that this provides you some concept of what is digital currency and how it is trying to take it’s location on the planet of e-commerce. There might be a bit more to it than I could explain in just one small post however I think you can get a great idea.