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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash kept and moved in digital type. Sounds simple enough, but how does it all work?
This kind of currency is thought to be great to utilize for making purchases on the internet due to the fact that if it works the method it was meant to, deals must be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer be able to gather personal information from individuals who use their credit cards to make online purchases. This would undoubtedly reduce the number of taken identities that occur every day.
To assist 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 numerous different types out there, each with it’s own special qualities.
Here are just a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold offers an extra measure of security and if you hold this kind of currency, you could perhaps straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these business enable you to send out money all over the world as long as you have cash in the account. For some services offered 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. Likewise called Hard Electronic Currency, it is planned to be more like using cash to make your transaction but your deal is non-refundable once made. This kind of system only works in one instructions.
The E-cash idea has actually developed together with the development of the Internet. People just do not feel comfy with giving their personal credit card information online when making a purchase.
Too many bad things can take place like identity theft. No one wants their identity stolen.
Many business have actually tried to develop this type of payment or monetary system to minimize the threats of shopping online.
Many countries have successfully 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 money onto the card and then all the money 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 transfer money through mobile phones. I believe this is somewhat 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 electronically.
I do hope that this provides you some concept of what is digital currency and how it is attempting to take it’s location on the planet of e-commerce. There may be a little bit more to it than I might explain in just one little short article but I believe you can get a great concept.