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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money saved and moved in digital form. Sounds easy enough, however how does it all work?
This kind of currency is believed to be great to utilize for making purchases on the internet since if it works the way it was indicated to, deals should be rather anonymous and untraceable back to the payer or user.
This implies that hackers would no longer have the ability to gather individual information from individuals who utilize their credit cards to make online purchases. This would clearly decrease the number of stolen 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 a number of 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 kept in vaults. The gold offers an additional measure of security and if you hold this type of currency, you might possibly straight exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these business enable you to send money 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 on cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is planned to be more like using money to make your deal however your deal is non-refundable when made. This type of system only works in one direction.
The E-cash concept has progressed in addition to the development of the Internet. People just do not feel comfy with giving their personal credit card information over the Internet when purchasing.
A lot of bad things can take place like identity theft. No one desires their identity taken.
So, numerous business have actually tried to create this type of payment or monetary system to minimize the dangers of shopping online.
Many nations have successfully created systems for “internal” use such as Hong Kong’s Octopus card. This card works much like a sort of debit card where the user loads cash onto the card and then all the money is transferred into a bank. They can then use the card for anything they need to use it for.
Some countries are working on or have systems that allow the user to move cash through mobile devices. I believe this is rather 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 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 describe in just one little post however I believe you can get an excellent idea.