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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash saved and moved in digital type. Sounds easy enough, but how does it all work?
This kind of currency is thought to be good to use for making purchases on the internet due to the fact that if it works the way it was implied to, transactions should be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to collect personal info from people who use their credit cards to make online purchases. This would obviously decrease the number of taken identities that take place every day.
To help you understand more of, “what is digital currency?” I have done quite a bit of research on the subject and have found that there are a number of different types out there, each with it’s own unique qualities.
Here are simply a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold supplies an extra procedure 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 are like PayPal and these business allow you to send out cash all over the world as long as you have money in the account. For some services provided by these types 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. Called Hard Electronic Currency, it is meant to be more like utilizing cash to make your transaction however your deal is non-refundable once made. This type of system just works in one direction.
The E-cash concept has developed together with the development of the Web. Individuals just do not feel comfy with giving their personal credit card information online when making a purchase.
Too many bad things can happen like identity theft. Nobody desires their identity taken.
Numerous companies have attempted to create this type of payment or financial system to decrease the dangers of shopping online.
Lots of nations have effectively developed systems for “internal” use 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 use the card for anything they require to use it for.
Some nations are working on or have systems that permit the user to transfer money through mobile phones. I think this is somewhat like what Chase lets their consumers 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 offers you some concept of what is digital currency and how it is trying to take it’s place in the world of e-commerce. There might be a bit more to it than I might describe in simply one small article however I believe you can get a great idea.