Binance Status Dec 2017
What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: money saved and moved in digital kind. Sounds easy enough, however how does it all work?
This kind of currency is thought to be excellent to use for making purchases on the internet due to the fact that if it works the way it was meant to, deals 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 information from people who use their credit cards to make online purchases. This would certainly reduce the number 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 on the subject and have found that there are numerous different 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 stored in vaults. The gold supplies an additional step of security and if you hold this kind of currency, you could potentially straight exchange it for solid gold bullion.
2. Central Currency Systems – these resemble PayPal and these companies allow you to send out cash all over the world as long as you have cash in the account. For some services supplied by these types of business, 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 planned to be more like using cash to make your deal but your transaction is non-refundable as soon as made. This type of system only works in one direction.
The E-cash concept has actually developed together with the development of the Web. People just do not feel comfortable with offering their individual credit card info online when making a purchase.
A lot of bad things can take place like identity theft. No one desires their identity taken.
So, many companies have actually attempted to develop this kind of payment or monetary system to minimize the dangers of shopping online.
Numerous countries have effectively developed systems for “internal” usage 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 transferred 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 enable the user to transfer money through mobile phones. I think this is somewhat like what Chase lets their consumers do. Their customers 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 trying to take it’s place worldwide of e-commerce. There may be a little bit more to it than I could explain in just one little post however I think you can get a good idea.