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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash saved and transferred in digital form. Sounds basic 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 method it was indicated to, deals 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 details from people who utilize their credit cards to make online purchases. This would undoubtedly decrease the number of stolen identities that take place 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 actually discovered that there are several 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 kept in vaults. The gold provides an extra step of security and if you hold this kind of currency, you could potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these companies permit you to send cash all over the world as long as you have money in the account. For some services offered by these kinds of companies, 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 intended to be more like using money to make your transaction but your deal is non-refundable as soon as made. This kind of system just works in one direction.
The E-cash idea has actually progressed along with the development of the Internet. Individuals just do not feel comfy with giving their individual charge card info over the Internet when buying.
A lot of bad things can take place like identity theft. No one wants their identity stolen.
Numerous companies have attempted to develop this type of payment or monetary system to reduce the threats of shopping online.
Numerous countries have successfully developed systems for “internal” usage such as Hong Kong’s Octopus card. This card works just like a sort of debit card where the user loads cash onto the card and then all the money is transferred into a bank. They can then utilize the card for anything they require to use it for.
Some nations are working on or have systems that allow the user to move cash through mobile phones. I think this is rather like what Chase lets their clients do. Their consumers can take a picture 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 in the world of e-commerce. There may be a bit more to it than I might describe in simply one little post however I believe you can get a good concept.