What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash kept and transferred in digital type. Sounds simple enough, however how does it all work?
This type of currency is believed to be excellent to use for making purchases on the internet due to the fact that if it works the method it was meant to, deals should be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer be able to gather individual info from people who use their charge card to make online purchases. This would certainly reduce the variety of stolen identities that happen every day.
To assist you understand more of, “what is digital currency?” I have done a fair bit of research on the subject and have discovered that there are several different types out there, each with it’s own distinct 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 offers an additional measure of security and if you hold this type of currency, you could perhaps straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these companies enable you to send cash all over the world as long as you have cash 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 on cryptography and/or trust networks. Called Hard Electronic Currency, it is planned to be more like using cash to make your transaction however your deal is non-refundable as soon as made. This type of system only works in one instructions.
The E-cash concept has evolved along with the advancement of the Web. People simply do not feel comfortable with offering their personal charge card details online when making a purchase.
Too many bad things can occur like identity theft. No one desires their identity taken.
Many companies have actually attempted to develop this type of payment or financial system to minimize the risks of shopping online.
Many nations have actually successfully produced 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 deposited into a bank. They can then use the card for anything they require to use it for.
Some countries are dealing with or have systems that allow the user to move money through mobile devices. I think 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 digitally.
I do hope that this offers you some concept of what is digital currency and how it is trying to take it’s location worldwide of e-commerce. There might be a bit more to it than I might explain in just one little post but I think you can get a good concept.