What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money saved and moved in digital form. Sounds basic enough, but how does it all work?
This type of currency is believed to be good to utilize for making purchases on the internet because if it works the method it was indicated to, transactions need to be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to gather personal info from individuals who use their charge card to make online purchases. This would clearly decrease the number of stolen identities that occur 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 several 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 procedure of security and if you hold this kind of currency, you could potentially straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like 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 supplied by these types of companies, you get charged a fee on the receivers end of the transaction.
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 transaction but your transaction is non-refundable as soon as made. This type of system only operates in one instructions.
The E-cash idea has actually evolved together with the advancement of the Internet. People just do not feel comfy with offering their individual charge card info over the Internet when purchasing.
A lot of bad things can happen like identity theft. Nobody desires their identity taken.
So, lots of companies have tried to develop this type of payment or monetary system to minimize the risks of shopping online.
Lots of countries have actually effectively produced systems for “in-house” 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 transferred into a bank. They can then utilize the card for anything they need to use it for.
Some countries are working on or have systems that allow the user to move money through mobile phones. I think this is rather like what Chase lets their consumers do. Their customers can take a photo 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 place worldwide of e-commerce. There may be a little bit more to it than I could explain in just one little article but I think you can get a great concept.