What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash stored and transferred in digital form. Sounds basic 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 suggested to, transactions need to be rather confidential and untraceable back to the payer or user.
This means that hackers would no longer be able to gather personal details from people who use their credit cards to make online purchases. This would undoubtedly reduce the variety of stolen identities that take place every day.
To assist you understand more of, “what is digital currency?” I have actually done quite a bit of research study on the subject and have found that there are numerous different 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 supplies an extra step of security and if you hold this kind of currency, you could possibly straight exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these business permit you to send cash all over the world as long as you have cash in the account. For some services supplied by these types of companies, you get charged a cost 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 intended to be more like utilizing money to make your deal but your deal is non-refundable when made. This type of system only works in one direction.
The E-cash concept has progressed in addition to the development of the Internet. People just do not feel comfy with giving their individual charge card details over the Internet when purchasing.
Too many bad things can occur like identity theft. No one wants their identity taken.
So, lots of companies have tried to produce this type of payment or monetary system to lessen the threats of shopping online.
Lots of countries have successfully developed systems for “in-house” usage 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 cash is deposited 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 permit the user to transfer cash through mobile devices. I believe this is rather like what Chase lets their consumers 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 provides you some idea 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 describe in simply one little post however I think you can get a great idea.