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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and moved in digital kind. Sounds simple enough, but how does it all work?
This type of currency is thought to be good to use for making purchases on the internet since if it works the way it was meant to, deals ought to be rather confidential and untraceable back to the payer or user.
This suggests that hackers would no longer have the ability to gather individual information from people who utilize their credit cards to make online purchases. This would obviously decrease the number of taken identities that take place 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 discovered that there are several 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 saved in vaults. The gold offers an extra measure of security and if you hold this kind of currency, you could potentially straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies enable you to send money 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 charge 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 meant to be more like using cash to make your deal but your transaction is non-refundable as soon as made. This type of system just works in one direction.
The E-cash concept has evolved along with the evolution of the Web. People simply do not feel comfortable with providing their personal charge card information over the Internet when buying.
A lot of bad things can occur like identity theft. No one wants their identity taken.
So, many companies have actually attempted to create this type of payment or monetary system to lessen the risks of shopping online.
Numerous nations have effectively developed systems for “in-house” usage 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 deposited into a bank. They can then use the card for anything they require to use it for.
Some nations are dealing with or have systems that allow the user to move money 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 electronically.
I do hope that this offers you some idea of what is digital currency and how it is attempting to take it’s place in the world of e-commerce. There may be a little bit more to it than I could explain in just one small article however I believe you can get a great idea.