What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money stored and transferred in digital type. Sounds easy 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 suggested to, transactions should be rather confidential and untraceable back to the payer or user.
This indicates that hackers would no longer be able to collect individual details from individuals who use their credit cards to make online purchases. This would certainly decrease the variety of stolen identities that take place every day.
To help you comprehend more of, “what is digital currency?” I have done a fair bit of research 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 couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold provides an extra step of security and if you hold this kind of currency, you could possibly directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like 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 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 on cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is intended to be more like using cash to make your deal however your transaction is non-refundable when made. This kind of system only works in one instructions.
The E-cash concept has progressed together with the development of the Internet. People simply do not feel comfortable with providing their personal credit card information online when purchasing.
Too many bad things can take place like identity theft. No one desires their identity taken.
Many business have attempted to produce this type of payment or financial system to minimize the threats of shopping online.
Many countries have actually effectively developed systems for “internal” usage such as Hong Kong’s Octopus card. This card works just like a sort of debit card where the user loads cash onto the card and then all the cash is deposited into a bank. They can then use the card for anything they require to use it for.
Some countries are dealing with or have systems that allow the user to transfer cash through mobile devices. I believe this is somewhat like what Chase lets their customers do. Their customers can take a photo 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 attempting to take it’s location in the world of e-commerce. There might be a little bit more to it than I might describe in simply one small short article however I believe you can get a good idea.