What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and moved in digital form. Sounds basic enough, but how does it all work?
This kind of currency is thought to be excellent to utilize for making purchases on the internet since if it works the method it was meant to, transactions ought to be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to gather personal info from individuals who use their credit cards to make online purchases. This would undoubtedly reduce the number of taken identities that take place every day.
To assist you understand more of, “what is digital currency?” I have done a fair bit of research on the subject and have discovered that there are numerous different 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 stored in vaults. The gold provides an extra measure of security and if you hold this type of currency, you might potentially directly exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these companies permit you to send money 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 charge on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is meant to be more like using cash to make your deal but your deal is non-refundable when made. This type of system only operates in one direction.
The E-cash concept has actually evolved along with the advancement of the Web. Individuals simply do not feel comfy with providing their personal credit card info online when buying.
A lot of bad things can take place like identity theft. Nobody desires their identity stolen.
Many business have tried to produce this type of payment or financial system to decrease the risks of shopping online.
Many countries have successfully produced systems for “internal” usage 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 cash is deposited into a bank. They can then use the card for anything they require to utilize it for.
Some countries are working on or have systems that allow the user to move cash through mobile devices. I believe this is somewhat like what Chase lets their customers do. Their customers can take an image of their check, front and back, with their phone and make their deposit electronically.
I do hope that this provides you some concept of what is digital currency and how it is attempting to take it’s place on the planet of e-commerce. There might be a little bit more to it than I might explain in simply one little short article however I believe you can get an excellent concept.