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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and moved in digital kind. Sounds simple enough, however how does it all work?
This type of currency is believed to be good to use for making purchases on the internet since if it works the method it was implied to, deals should be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to collect personal details from people who utilize their credit cards to make online purchases. This would undoubtedly decrease the number of stolen identities that happen every day.
To help you understand more of, “what is digital currency?” I have actually done a fair bit of research on the subject and have found that there are several various 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 kept in vaults. The gold offers an extra step of security and if you hold this type of currency, you might potentially directly 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 supplied by these kinds of companies, you get charged a cost on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Called Hard Electronic Currency, it is intended to be more like utilizing money to make your deal but your transaction is non-refundable when made. This type of system just operates in one instructions.
The E-cash concept has evolved together with the advancement of the Web. People simply do not feel comfy with giving their individual credit card information online when making a purchase.
A lot of bad things can take place like identity theft. Nobody desires their identity stolen.
So, many business have attempted to produce this kind of payment or monetary system to minimize the threats of shopping online.
Numerous countries have successfully produced 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 then all the money is deposited into a bank. They can then use the card for anything they require to use it for.
Some countries are working on or have systems that permit the user to move money through mobile devices. I think this is rather like what Chase lets their consumers 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 trying to take it’s place on the planet of e-commerce. There might be a little more to it than I might explain in just one small article but I believe you can get an excellent idea.