What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money stored and transferred in digital kind. Sounds easy enough, but how does it all work?
This type of currency is thought to be great to utilize for making purchases on the internet since if it works the way it was indicated to, deals should be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer be able to gather individual info from individuals who use their credit cards to make online purchases. This would obviously decrease the variety of taken identities that occur 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 stored in vaults. The gold provides an extra step of security and if you hold this kind of currency, you might perhaps directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies permit you to send money all over the world as long as you have cash in the account. For some services supplied by these types of companies, you get charged a charge on the receivers end of the transaction.
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 as soon as made. This type of system only operates in one direction.
The E-cash concept has developed in addition to the evolution of the Web. Individuals just do not feel comfortable with offering their individual charge card info online when purchasing.
Too many bad things can happen like identity theft. No one desires their identity stolen.
Many companies have tried to develop this type of payment or monetary system to decrease the dangers of shopping online.
Numerous countries have successfully created systems for “internal” 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 after that all the cash is deposited into a bank. They can then utilize the card for anything they require to use it for.
Some countries are dealing with or have systems that allow the user to move cash through mobile phones. I believe this is rather like what Chase lets their customers do. Their clients can take a picture of their check, front and back, with their phone and make their deposit digitally.
I do hope that this provides 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 bit more to it than I could describe in just one little article however I believe you can get an excellent concept.