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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash kept and transferred in digital form. Sounds simple enough, but how does it all work?
This kind of currency is believed to be good to utilize for making purchases on the internet because if it works the method it was indicated to, transactions should 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 utilize their charge card to make online purchases. This would undoubtedly decrease the number of stolen identities that occur 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 various types out there, each with it’s own distinct 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 extra procedure of security and if you hold this type of currency, you could perhaps directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these resemble PayPal and these business allow you to send out money all over the world as long as you have money in the account. For some services provided by these types of business, you get charged a cost on the receivers end of the deal.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like using money to make your deal but your transaction is non-refundable as soon as made. This kind of system only works in one instructions.
The E-cash idea has actually evolved together with the evolution of the Web. Individuals simply do not feel comfortable with providing their individual charge card information online when making a purchase.
A lot of bad things can happen like identity theft. No one wants their identity stolen.
Lots of companies have tried to develop this type of payment or monetary system to decrease the risks of shopping online.
Numerous 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 money onto the card and after that all the cash is deposited into a bank. They can then use the card for anything they require to utilize it for.
Some nations are dealing with or have systems that allow the user to transfer money through mobile phones. I think 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 electronically.
I do hope that this offers you some concept of what is digital currency and how it is trying 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 small short article however I think you can get a good concept.