Bitstamp To Binance Fees
What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money stored and moved in digital kind. Sounds basic enough, but how does it all work?
This kind of currency is thought to be great to use for making purchases on the internet since if it works the way it was indicated to, deals need to be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to gather individual information from people who utilize their credit cards to make online purchases. This would certainly reduce the number of taken identities that happen every day.
To help you understand more of, “what is digital currency?” I have actually done quite a bit of research on the subject and have found that there are numerous various 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 supplies an additional measure of security and if you hold this type of currency, you could potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these companies allow you to send cash all over the world as long as you have cash in the account. For some services supplied by these types of companies, 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 intended to be more like using 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 evolved together with the advancement of the Internet. People simply do not feel comfy with offering their personal credit card information online when buying.
Too many bad things can take place like identity theft. No one wants their identity taken.
Numerous companies have actually tried to create this type of payment or financial system to decrease the threats of shopping online.
Many nations have actually successfully developed systems for “internal” use such as Hong Kong’s Octopus card. This card works much like a sort of debit card where the user loads money onto the card and after that all the cash is transferred into a bank. They can then utilize the card for anything they need to utilize it for.
Some nations are dealing with or have systems that enable the user to transfer cash through mobile phones. I believe this is somewhat like what Chase lets their clients do. Their customers can take a photo of their check, front and back, with their phone and make their deposit electronically.
I do hope that this gives 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 more to it than I could explain in just one small post however I think you can get a good idea.