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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money saved and transferred in digital form. Sounds easy enough, but how does it all work?
This type of currency is thought to be good to use for making purchases on the internet due to the fact that if it works the way it was suggested to, transactions should be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to gather personal information from people who use their charge card to make online purchases. This would undoubtedly reduce the variety of stolen identities that occur 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 actually found that there are a number of various types out there, each with it’s own unique qualities.
Here are just a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold provides an extra measure 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 business permit you to send cash all over the world as long as you have cash in the account. For some services offered by these kinds of companies, you get charged a fee 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 intended to be more like using money to make your transaction but your deal is non-refundable when made. This kind of system only operates in one instructions.
The E-cash concept has progressed together with the advancement of the Web. Individuals simply do not feel comfy with providing their personal charge card information over the Internet when purchasing.
A lot of bad things can happen like identity theft. Nobody wants their identity stolen.
So, numerous business have tried to develop this type of payment or monetary system to minimize the dangers of shopping online.
Numerous nations have successfully 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 money onto the card and after that all the cash is deposited into a bank. They can then use the card for anything they require to use it for.
Some countries are working on or have systems that permit the user to move cash through mobile devices. I think this is rather like what Chase lets their consumers do. Their consumers can take a picture of their check, front and back, with their phone and make their deposit electronically.
I do hope that this gives you some idea of what is digital currency and how it is trying to take it’s location in the world of e-commerce. There may be a bit more to it than I might explain in simply one little post but I think you can get a great idea.