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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: money kept and moved in digital type. Sounds basic enough, but how does it all work?
This type of currency is thought to be good to use for making purchases on the internet due to the fact that if it works the method it was meant to, transactions need to be rather anonymous and untraceable back to the payer or user.
This suggests that hackers would no longer have the ability to gather personal information from individuals who utilize their charge card to make online purchases. This would clearly decrease the number of taken 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 special qualities.
Here are simply 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 measure of security and if you hold this type of currency, you might perhaps directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like PayPal and these business allow you to send cash all over the world as long as you have money in the account. For some services supplied by these kinds 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 utilizing money to make your transaction but your deal is non-refundable once made. This type of system just works in one direction.
The E-cash concept has actually developed along with the evolution of the Internet. Individuals just do not feel comfy with giving their personal charge card information over the Internet when purchasing.
A lot of bad things can happen like identity theft. No one desires their identity stolen.
Lots of business have attempted to create this type of payment or monetary system to lessen the threats of shopping online.
Many nations have successfully created systems for “internal” use such as Hong Kong’s Octopus card. This card works similar to a sort of debit card where the user loads money onto the card and then all the money is deposited into a bank. They can then use the card for anything they require to utilize it for.
Some nations are working on or have systems that permit the user to transfer money through mobile phones. I believe this is somewhat like what Chase lets their consumers do. Their customers can take a picture of their check, front and back, with their phone and make their deposit electronically.
I do hope that this gives you some idea of what is digital currency and how it is trying to take it’s place in the world of e-commerce. There may be a bit more to it than I could explain in just one little post but I believe you can get a good concept.