If Not Binance What
What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and transferred in digital form. Sounds easy enough, but how does it all work?
This type of currency is believed to be great to use for making purchases on the internet since if it works the method it was implied to, transactions ought to be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to collect personal information from individuals who use their credit cards to make online purchases. This would undoubtedly reduce the variety of stolen identities that happen 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 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 provides an extra step of security and if you hold this type of currency, you could possibly straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these companies allow you to send cash all over the world as long as you have money in the account. For some services supplied by these kinds of companies, 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. Called Hard Electronic Currency, it is planned to be more like utilizing cash to make your transaction however your transaction is non-refundable once made. This type of system only operates in one direction.
The E-cash concept has progressed in addition to the development of the Web. People simply do not feel comfortable with providing their individual credit card information over the Internet when purchasing.
Too many bad things can take place like identity theft. Nobody desires their identity taken.
Many business have attempted to create this type of payment or financial system to lessen the dangers of shopping online.
Lots of nations have effectively developed systems for “in-house” usage 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 then all the cash is deposited into a bank. They can then utilize the card for anything they need to utilize it for.
Some nations are working on or have systems that permit the user to transfer cash through mobile phones. I believe 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 provides you some concept of what is digital currency and how it is trying to take it’s location worldwide of e-commerce. There may be a little bit more to it than I might describe in just one small short article however I think you can get a great idea.