Changpeng Zhao Binance Crunchbase

Changpeng Zhao Binance Crunchbase

What Is Digital Currency-How Does It Work

 

What is digital currency? It is defined as: cash stored and moved in digital kind. Sounds simple enough, but how does it all work?

This type of currency is thought to be great to utilize for making purchases on the internet since if it works the method it was meant to, deals need to be rather anonymous and untraceable back to the payer or user.

This implies that hackers would no longer be able to collect personal information from individuals who use their charge card to make online purchases. This would clearly reduce the variety of stolen identities that occur every day.

To help you comprehend 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 few with their descriptions following:

1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold offers an additional step of security and if you hold this kind of currency, you might perhaps directly exchange it for solid gold bullion.

2. Centralized Currency Systems – these resemble PayPal and these business allow you to send cash 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 intended to be more like using money to make your transaction however your deal is non-refundable when made. This kind of system only operates in one direction.

The E-cash concept has progressed together with the evolution of the Web. Individuals just do not feel comfortable with providing their individual credit card information online when making a purchase.

Too many bad things can occur like identity theft. Nobody wants their identity stolen.

Numerous companies have attempted to develop this type of payment or financial system to reduce the threats of shopping online.

Many countries have actually 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 transferred into a bank. They can then use the card for anything they need to use it for.

Some nations are working on or have systems that allow the user to transfer money through mobile phones. I think this is somewhat like what Chase lets their consumers do. Their consumers can take a photo of their check, front and back, with their phone and make their deposit electronically.

I do hope that this gives you some concept of what is digital currency and how it is attempting to take it’s place in the world of e-commerce. There might be a little more to it than I could explain in simply one little article but I think you can get a great concept.

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