What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money stored and transferred in digital type. Sounds basic enough, but how does it all work?
This type of currency is believed to be great to use for making purchases on the internet because if it works the method it was implied to, transactions ought to 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 people who utilize their charge card to make online purchases. This would clearly reduce the number of taken identities that take place every day.
To help you understand more of, “what is digital currency?” I have done quite a bit of research on the subject and have discovered that there are a number of different types out there, each with it’s own special qualities.
Here are just a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold provides an additional step of security and if you hold this type of currency, you could potentially straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these companies permit you to send out money all over the world as long as you have money in the account. For some services provided by these types of companies, you get charged a fee on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Called Hard Electronic Currency, it is planned to be more like using cash to make your deal but your transaction is non-refundable once made. This type of system just operates in one instructions.
The E-cash idea has evolved in addition to the evolution of the Web. Individuals simply do not feel comfy with giving their individual credit card details online when purchasing.
Too many bad things can take place like identity theft. Nobody desires their identity stolen.
So, numerous companies have tried to create this type of payment or monetary system to minimize the threats of shopping online.
Lots of nations have effectively created systems for “internal” usage 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 after that all the cash is deposited into a bank. They can then use the card for anything they require to utilize it for.
Some nations are working on or have systems that enable the user to transfer money through mobile devices. I believe this is rather like what Chase lets their customers do. Their consumers can take an image of their check, front and back, with their phone and make their deposit digitally.
I do hope that this provides you some idea of what is digital currency and how it is trying to take it’s place worldwide of e-commerce. There might be a little bit more to it than I might describe in just one little post however I believe you can get a great idea.