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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and transferred in digital kind. Sounds easy enough, but how does it all work?
This kind of currency is believed to be excellent to utilize for making purchases on the internet since if it works the way it was meant to, transactions ought to be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer be able to gather personal info from people who utilize their credit cards to make online purchases. This would undoubtedly decrease the variety of stolen identities that happen every day.
To help you understand more of, “what is digital currency?” I have done a fair bit of research on the subject and have actually discovered that there are several different types out there, each with it’s own unique qualities.
Here are simply a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold supplies an additional measure of security and if you hold this kind of currency, you could possibly directly exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these companies enable you to send out cash all over the world as long as you have money in the account. For some services offered by these kinds of business, you get charged a fee 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 planned to be more like utilizing cash to make your transaction but your transaction is non-refundable once made. This type of system just works in one direction.
The E-cash concept has progressed together with the evolution of the Internet. Individuals simply do not feel comfy with giving their personal charge card details online when making a purchase.
A lot of bad things can happen like identity theft. Nobody wants their identity taken.
Lots of companies have tried to produce this type of payment or monetary system to minimize the risks of shopping online.
Lots of countries have successfully produced systems for “internal” use such as Hong Kong’s Octopus card. This card works similar to a sort of debit card where the user loads cash onto the card and after that all the money is deposited into a bank. They can then utilize the card for anything they require to use it for.
Some countries are dealing with or have systems that enable the user to move money through mobile phones. I believe this is somewhat like what Chase lets their customers do. Their customers can take an image of their check, front and back, with their phone and make their deposit digitally.
I do hope that this offers 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 describe in just one little article but I believe you can get a great concept.