Week 9 Binance Coin Vote
What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash stored and moved in digital type. Sounds simple enough, but how does it all work?
This type of currency is believed to be good to use for making purchases on the internet because if it works the method it was implied to, deals ought to be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer have the ability to gather personal details from people who use their charge card to make online purchases. This would clearly decrease the number of stolen identities that occur every day.
To help you understand more of, “what is digital currency?” I have actually done a fair bit of research study on the subject and have actually found that there are several different types out there, each with it’s own distinct 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 procedure of security and if you hold this type of currency, you could potentially straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these companies enable you to send money all over the world as long as you have cash in the account. For some services offered by these kinds of business, 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. Also called Hard Electronic Currency, it is planned to be more like utilizing money to make your deal but your deal is non-refundable when made. This type of system just operates in one direction.
The E-cash idea has actually developed in addition to the advancement of the Internet. Individuals simply do not feel comfortable with giving their individual credit card info over the Internet when making a purchase.
A lot of bad things can happen like identity theft. Nobody wants their identity stolen.
Numerous business have actually attempted to produce this type of payment or monetary system to reduce the risks of shopping online.
Lots of nations have successfully developed 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 cash onto the card and after that 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 transfer cash through mobile phones. I think this is rather like what Chase lets their clients do. Their customers 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 attempting to take it’s location in the world of e-commerce. There may be a little bit more to it than I could explain in simply one little article but I think you can get a good idea.