Growing Litecoin With Binance Coin
What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash stored and moved in digital form. Sounds easy enough, but how does it all work?
This type of currency is thought to be great to use for making purchases on the internet because if it works the way it was meant to, transactions ought to be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer have the ability to collect personal info from people who utilize their charge card to make online purchases. This would certainly decrease the number of taken identities that occur 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 discovered that there are numerous various 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 stored in vaults. The gold offers an extra procedure of security and if you hold this type of currency, you could potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these business enable you to send out cash all over the world as long as you have money 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 planned to be more like using money to make your transaction however your transaction is non-refundable when made. This type of system just operates in one instructions.
The E-cash idea has progressed along with the evolution of the Internet. Individuals just do not feel comfy with providing their personal credit card information over the Internet when purchasing.
Too many bad things can happen like identity theft. Nobody desires their identity stolen.
Numerous companies have tried to develop this type of payment or financial system to reduce the risks 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 money 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 countries are working on or have systems that permit the user to move cash through mobile devices. I believe this is rather like what Chase lets their consumers do. Their consumers 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 idea of what is digital currency and how it is attempting to take it’s place worldwide of e-commerce. There might be a bit more to it than I could describe in simply one little article but I think you can get a great idea.