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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and moved in digital form. Sounds easy enough, however how does it all work?
This type of currency is thought to be excellent to use for making purchases on the internet due to the fact that if it works the method it was implied to, deals must be rather confidential and untraceable back to the payer or user.
This implies that hackers would no longer have the ability to collect individual information from people who use their charge card to make online purchases. This would obviously reduce the number of taken identities that happen every day.
To help 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 numerous various types out there, each with it’s own unique 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 measure of security and if you hold this type of currency, you might potentially straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these business allow you to send money all over the world as long as you have money in the account. For some services supplied by these kinds of companies, you get charged a cost 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 meant to be more like using cash to make your transaction but your deal is non-refundable when made. This type of system just works in one direction.
The E-cash idea has developed along with the advancement of the Web. Individuals just do not feel comfortable with giving their personal credit card info online when purchasing.
A lot of bad things can take place like identity theft. No one desires their identity stolen.
So, lots of business have tried to develop this type of payment or monetary system to decrease the threats of shopping online.
Many countries have effectively produced systems for “in-house” use such as Hong Kong’s Octopus card. This card works similar to a sort of debit card where the user loads money onto the card and then all the money is deposited into a bank. They can then utilize the card for anything they require to use it for.
Some nations are dealing with or have systems that allow the user to move money through mobile phones. I think this is somewhat like what Chase lets their consumers do. Their clients can take a photo of their check, front and back, with their phone and make their deposit electronically.
I do hope that this offers you some idea of what is digital currency and how it is trying to take it’s place on the planet of e-commerce. There might be a bit more to it than I could explain in just one small article but I think you can get an excellent concept.