What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and moved in digital form. Sounds simple enough, but how does it all work?
This type of currency is thought to be great to utilize for making purchases on the internet because if it works the way it was suggested to, deals 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 individuals who use their charge card to make online purchases. This would undoubtedly decrease the variety of stolen identities that occur every day.
To help you comprehend more of, “what is digital currency?” I have done quite a bit of research on the subject and have discovered that there are a number of various 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 saved in vaults. The gold offers an additional step of security and if you hold this type of currency, you could possibly straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble 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 offered by these types of companies, you get charged a fee 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 intended to be more like utilizing cash to make your transaction however your deal is non-refundable once made. This type of system only operates in one direction.
The E-cash idea has actually developed together with the advancement of the Web. Individuals simply do not feel comfortable with providing their individual charge card information over the Internet when making a purchase.
Too many bad things can occur like identity theft. No one desires their identity stolen.
So, many business have attempted to produce this kind of payment or monetary system to lessen the threats of shopping online.
Numerous countries have successfully produced 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 after that all the money is transferred into a bank. They can then use the card for anything they require to use it for.
Some countries are dealing with or have systems that allow the user to transfer money through mobile phones. I think this is rather like what Chase lets their clients 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 provides you some idea of what is digital currency and how it is trying to take it’s location on the planet of e-commerce. There may be a little more to it than I might describe in just one small short article but I believe you can get a good concept.