What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money kept and moved in digital kind. Sounds simple enough, however how does it all work?
This kind of currency is believed to be great to use for making purchases on the internet since if it works the method it was suggested to, transactions must be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to collect personal info from individuals who utilize their credit cards to make online purchases. This would clearly reduce the number of stolen identities that occur every day.
To help you comprehend more of, “what is digital currency?” I have done a fair bit of research study on the subject and have discovered that there are a number of 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 supplies an additional step of security and if you hold this type of currency, you might perhaps directly exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these companies enable you to send cash all over the world as long as you have money in the account. For some services offered by these types of business, you get charged a charge 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 utilizing money to make your deal however your deal is non-refundable once made. This kind of system only works in one direction.
The E-cash idea has actually evolved together with the evolution of the Internet. Individuals simply do not feel comfortable with offering their personal credit card information online when buying.
A lot of bad things can occur like identity theft. No one desires their identity taken.
Lots of business have attempted to develop this type of payment or financial system to minimize the dangers of shopping online.
Many nations have successfully developed systems for “in-house” use 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 then all the cash is deposited into a bank. They can then use the card for anything they need to utilize it for.
Some nations are dealing with or have systems that enable the user to move 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 concept of what is digital currency and how it is trying to take it’s location in the world of e-commerce. There might be a little more to it than I might describe in just one small article but I believe you can get an excellent idea.