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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash saved and transferred in digital kind. Sounds basic enough, however how does it all work?
This kind of currency is thought to be great to use for making purchases on the internet since if it works the method it was meant to, deals should be rather confidential and untraceable back to the payer or user.
This suggests that hackers would no longer be able to collect individual info from people who use their charge card to make online purchases. This would clearly decrease the variety of taken identities that occur every day.
To help you understand more of, “what is digital currency?” I have done a fair bit of research study on the subject and have found that there are several different types out there, each with it’s own unique qualities.
Here are just a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold stored in vaults. The gold offers an extra step of security and if you hold this type of currency, you could potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies allow you to send out money all over the world as long as you have cash in the account. For some services provided by these types of business, you get charged a cost 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 intended to be more like using cash to make your deal but your deal is non-refundable as soon as made. This type of system just operates in one direction.
The E-cash concept has developed along with the advancement of the Web. Individuals simply do not feel comfy with offering their individual charge card details over the Internet when buying.
A lot of bad things can take place like identity theft. Nobody desires their identity stolen.
So, many companies have tried to produce this type of payment or monetary system to reduce the threats of shopping online.
Many countries have successfully developed 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 money onto the card and after that all the cash is deposited into a bank. They can then utilize the card for anything they need to use it for.
Some countries are dealing with or have systems that allow the user to transfer money through mobile devices. I believe this is rather like what Chase lets their consumers do. Their clients 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 attempting to take it’s location worldwide of e-commerce. There might be a little more to it than I could explain in simply one little post but I believe you can get an excellent concept.