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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money saved and moved in digital type. Sounds simple enough, however how does it all work?
This type of currency is believed to be good to utilize for making purchases on the internet since if it works the way it was meant to, deals must be rather anonymous and untraceable back to the payer or user.
This indicates that hackers would no longer have the ability to gather individual info from individuals who use their credit cards to make online purchases. This would undoubtedly reduce the variety of stolen 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 discovered 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 stored 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. Centralized Currency Systems – these resemble 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 supplied by these types of companies, you get charged a cost on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based upon cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is intended to be more like using cash to make your deal but your transaction is non-refundable when made. This kind of system only works in one direction.
The E-cash concept has developed together with the development of the Web. Individuals just do not feel comfortable with giving their individual credit card info over the Internet when purchasing.
A lot of bad things can happen like identity theft. No one wants their identity stolen.
So, numerous companies have actually attempted to produce this type of payment or monetary system to decrease the dangers of shopping online.
Numerous nations have 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 then all the cash is transferred into a bank. They can then use the card for anything they need to utilize it for.
Some countries are dealing with or have systems that permit the user to transfer money through mobile phones. I believe this is somewhat like what Chase lets their consumers do. Their clients can take a picture of their check, front and back, with their phone and make their deposit electronically.
I do hope that this provides you some idea of what is digital currency and how it is trying to take it’s location in the world of e-commerce. There might be a little bit more to it than I could explain in simply one little article but I believe you can get an excellent idea.