What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money stored and moved in digital form. Sounds easy enough, but how does it all work?
This kind of currency is believed to be great to use for making purchases on the internet because if it works the way it was suggested to, transactions should be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer be able to collect individual info from individuals who utilize their charge card to make online purchases. This would certainly decrease the number of taken identities that happen every day.
To help you comprehend more of, “what is digital currency?” I have done quite a bit of research on the subject and have actually discovered that there are numerous different 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 stored in vaults. The gold provides an extra measure of security and if you hold this type of currency, you might perhaps straight exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these business 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 fee 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 money to make your transaction but your deal is non-refundable when made. This type of system only operates in one direction.
The E-cash idea has actually evolved in addition to the evolution of the Internet. Individuals simply do not feel comfortable with providing their personal charge card info online when making a purchase.
A lot of bad things can happen like identity theft. Nobody wants their identity taken.
Lots of companies have tried to create this type of payment or financial system to lessen the risks of shopping online.
Numerous nations have successfully produced systems for “in-house” usage 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 then all the cash is transferred into a bank. They can then use the card for anything they need to use it for.
Some nations are working on or have systems that allow the user to move money through mobile devices. I think this is somewhat like what Chase lets their consumers do. Their clients can take a picture 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 trying to take it’s location in the world of e-commerce. There might be a little more to it than I could explain in simply one small article however I believe you can get an excellent concept.