What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash saved and moved in digital kind. Sounds simple enough, however how does it all work?
This type of currency is believed to be great to utilize for making purchases on the internet since if it works the way it was suggested to, deals should be rather anonymous and untraceable back to the payer or user.
This implies that hackers would no longer have the ability to gather personal info from individuals who use their credit cards to make online purchases. This would undoubtedly reduce the variety of stolen identities that occur 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 actually found that there are numerous various types out there, each with it’s own unique qualities.
Here are just a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold saved in vaults. The gold offers 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 offered by these types of companies, you get charged a fee 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 meant to be more like using cash to make your deal but your transaction is non-refundable as soon as made. This type of system just operates in one instructions.
The E-cash idea has actually evolved in addition to the development of the Web. Individuals just do not feel comfortable with offering their individual charge card info over the Internet when making a purchase.
Too many bad things can take place like identity theft. No one wants their identity taken.
Many companies have actually tried to create this type of payment or financial system to decrease the dangers of shopping online.
Many nations have actually successfully created 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 cash onto the card and then all the cash 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 money through mobile phones. I believe this is rather like what Chase lets their consumers 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 provides you some concept of what is digital currency and how it is trying to take it’s location worldwide of e-commerce. There may be a little more to it than I could explain in just one little short article but I believe you can get an excellent idea.