What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money stored and transferred in digital kind. Sounds easy enough, but how does it all work?
This type of currency is believed to be excellent to use for making purchases on the internet because if it works the way it was indicated to, transactions must be rather anonymous and untraceable back to the payer or user.
This suggests that hackers would no longer be able to collect personal info from individuals who use their credit cards to make online purchases. This would clearly decrease the variety of taken identities that take place every day.
To help you understand more of, “what is digital currency?” I have done quite a bit of research on the subject and have actually found that there are a number of 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 offers an additional step of security and if you hold this kind of currency, you might possibly directly exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these business enable you to send money all over the world as long as you have cash in the account. For some services provided by these kinds of business, you get charged a charge on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like using money to make your transaction however your deal is non-refundable when made. This kind of system just operates in one direction.
The E-cash idea has actually developed along with the advancement of the Web. People just do not feel comfy with offering their individual credit card details online when purchasing.
Too many bad things can take place like identity theft. No one wants their identity taken.
So, numerous companies have attempted to produce this kind of payment or monetary system to decrease the risks of shopping online.
Numerous countries have actually effectively created 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 after that all the money is transferred into a bank. They can then use the card for anything they need to use it for.
Some countries are working on or have systems that enable the user to transfer cash through mobile devices. I believe this is rather like what Chase lets their customers do. Their consumers can take a picture of their check, front and back, with their phone and make their deposit digitally.
I do hope that this gives you some concept of what is digital currency and how it is trying to take it’s location worldwide of e-commerce. There might be a little more to it than I could explain in just one small short article but I think you can get a great idea.