What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash kept and moved in digital kind. Sounds basic enough, but how does it all work?
This kind of currency is believed to be great to use for making purchases on the internet due to the fact that if it works the way it was indicated to, deals must be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to gather individual details from people who use their credit cards to make online purchases. This would obviously reduce the number of stolen identities that happen every day.
To assist 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 several different types out there, each with it’s own distinct 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 provides an additional measure of security and if you hold this type of currency, you could potentially directly exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these business enable you to send out cash all over the world as long as you have cash in the account. For some services provided by these types of companies, you get charged a cost on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like utilizing money to make your deal however your deal is non-refundable as soon as made. This type of system just operates in one direction.
The E-cash concept has progressed together with the advancement of the Internet. People just do not feel comfy with offering their personal charge card info over the Internet when making a purchase.
Too many bad things can happen like identity theft. Nobody desires their identity stolen.
Many companies have tried to develop this type of payment or monetary system to minimize the threats 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 use the card for anything they need to use it for.
Some nations are dealing with or have systems that permit the user to move cash through mobile devices. I think this is rather like what Chase lets their clients do. Their consumers can take a photo 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 worldwide of e-commerce. There may be a bit more to it than I could describe in simply one little article but I think you can get an excellent idea.