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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash stored and moved in digital kind. Sounds simple enough, but how does it all work?
This kind of currency is believed to be good to use for making purchases on the internet due to the fact that if it works the way it was indicated to, deals must be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer have the ability to collect individual details from individuals who use their charge card to make online purchases. This would obviously reduce the number of taken identities that occur every day.
To help you comprehend more of, “what is digital currency?” I have done quite a bit of research on the subject and have found that there are several various types out there, each with it’s own distinct 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 extra measure of security and if you hold this kind of currency, you might perhaps directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies enable you to send cash 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 fee on the receivers end of the transaction.
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 utilizing cash to make your deal but your deal is non-refundable when made. This type of system just works in one direction.
The E-cash idea has developed together with the advancement of the Internet. People simply do not feel comfortable with providing their individual charge card details online when buying.
Too many bad things can happen like identity theft. Nobody desires their identity stolen.
So, many companies have tried to produce this kind of payment or monetary system to decrease the dangers of shopping online.
Lots of nations have actually effectively developed systems for “in-house” use such as Hong Kong’s Octopus card. This card works just like a sort of debit card where the user loads cash onto the card and after that all the money is deposited into a bank. They can then utilize the card for anything they require to use it for.
Some nations are dealing with or have systems that allow the user to move money through mobile phones. I think this is rather like what Chase lets their customers 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 concept 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 more to it than I might describe in simply one little post however I believe you can get a good idea.