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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and transferred in digital type. Sounds basic enough, however how does it all work?
This kind of currency is thought to be good to utilize for making purchases on the internet because if it works the way it was meant to, deals must be rather anonymous and untraceable back to the payer or user.
This suggests that hackers would no longer be able to gather personal information from individuals who use their credit cards to make online purchases. This would undoubtedly decrease the number of stolen identities that occur every day.
To assist you understand more of, “what is digital currency?” I have actually done quite a bit of research on the subject and have found that there are numerous various types out there, each with it’s own special 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 kind of currency, you could perhaps directly exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these business allow you to send out cash all over the world as long as you have money in the account. For some services offered by these kinds of business, 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. Also called Hard Electronic Currency, it is meant to be more like using money to make your deal but your deal is non-refundable once made. This type of system only operates in one instructions.
The E-cash concept has developed in addition to the advancement of the Internet. Individuals simply do not feel comfortable with providing their individual credit card info over the Internet when making a purchase.
Too many bad things can take place like identity theft. No one desires their identity stolen.
So, numerous business have actually tried to produce this type of payment or monetary system to minimize the risks of shopping online.
Numerous countries have effectively produced systems for “in-house” usage such as Hong Kong’s Octopus card. This card works much like a sort of debit card where the user loads money 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 phones. I think this is rather like what Chase lets their consumers do. Their customers can take a picture of their check, front and back, with their phone and make their deposit electronically.
I do hope that this offers you some idea of what is digital currency and how it is trying to take it’s place on the planet of e-commerce. There might be a little bit more to it than I could describe in just one little article but I think you can get an excellent concept.