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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash saved and moved in digital kind. Sounds basic enough, however how does it all work?
This type of currency is believed to be good to use for making purchases on the internet due to the fact that if it works the method it was implied to, deals must be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to collect personal info from individuals who utilize their credit cards to make online purchases. This would clearly decrease the number of taken 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 numerous 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 offers an extra step of security and if you hold this type of currency, you could possibly directly exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these companies enable you to send out cash all over the world as long as you have money in the account. For some services supplied by these kinds of business, you get charged a fee on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Also 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 type of system just operates in one direction.
The E-cash idea has developed in addition to the development of the Internet. People simply do not feel comfortable with providing their personal charge card info online when buying.
Too many bad things can happen like identity theft. No one desires their identity taken.
Lots of companies have attempted to develop this type of payment or monetary system to minimize the threats of shopping online.
Lots of countries have actually effectively developed systems for “internal” 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 then all the money 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 allow the user to transfer cash through mobile phones. I think this is rather like what Chase lets their consumers 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 might be a bit more to it than I could describe in simply one small short article however I believe you can get a great concept.