What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash saved and transferred in digital type. Sounds simple enough, however how does it all work?
This type of currency is thought to be excellent to use for making purchases on the internet because if it works the way it was implied to, transactions need to be rather anonymous and untraceable back to the payer or user.
This suggests that hackers would no longer have the ability to collect individual info from individuals who utilize their credit cards to make online purchases. This would undoubtedly decrease the variety of taken identities that happen every day.
To assist 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 several different 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 kept in vaults. The gold provides an extra step of security and if you hold this kind of currency, you could perhaps directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies allow you to send out cash all over the world as long as you have cash in the account. For some services offered by these types of companies, you get charged a charge on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like using money to make your deal but your deal is non-refundable when made. This kind of system just works in one direction.
The E-cash idea has actually developed in addition to the evolution of the Internet. People just do not feel comfy with giving their individual credit card info over the Internet when making a purchase.
Too many bad things can take place like identity theft. No one wants their identity taken.
Numerous business have tried to create this type of payment or monetary system to lessen the dangers of shopping online.
Numerous countries have actually effectively created systems for “in-house” use 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 after that all the cash 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 believe this is somewhat like what Chase lets their clients do. Their consumers can take an image of their check, front and back, with their phone and make their deposit digitally.
I do hope that this provides you some concept of what is digital currency and how it is attempting to take it’s location on the planet of e-commerce. There may be a little bit more to it than I could explain in just one little short article but I believe you can get a great concept.