What Is Digital Currency-How Does It Work
What is digital currency? It is defined 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 because if it works the way it was implied to, transactions must be rather anonymous and untraceable back to the payer or user.
This suggests that hackers would no longer be able to collect personal info from individuals who utilize their credit cards to make online purchases. This would clearly decrease the variety of stolen identities that happen every day.
To help you comprehend more of, “what is digital currency?” I have done a fair bit of research study on the subject and have actually found that there are several different types out there, each with it’s own distinct qualities.
Here are simply a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold provides an extra measure of security and if you hold this type of currency, you might potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these business allow you to send cash all over the world as long as you have cash in the account. For some services offered by these types of business, you get charged a fee on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Called Hard Electronic Currency, it is intended to be more like utilizing money to make your transaction but your deal is non-refundable as soon as made. This type of system only works in one instructions.
The E-cash idea has actually progressed in addition to the advancement of the Internet. People simply do not feel comfy with offering their personal credit card information over the Internet when purchasing.
Too many bad things can happen like identity theft. Nobody desires their identity stolen.
Many companies have actually tried to create this type of payment or monetary system to minimize the threats of shopping online.
Many nations have successfully created 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 cash onto the card and then all the money is deposited into a bank. They can then utilize the card for anything they need to utilize it for.
Some countries are dealing with or have systems that enable the user to move money through mobile phones. I believe this is rather like what Chase lets their clients do. Their customers 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 attempting to take it’s place worldwide of e-commerce. There may be a little more to it than I might describe in simply one small post however I think you can get a good idea.