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What Is Digital Currency-How Does It Work
What is digital currency? It is defined as: cash stored and moved in digital type. Sounds simple enough, however how does it all work?
This type of currency is believed to be great to use for making purchases on the internet due to the fact that if it works the way it was suggested to, deals must be rather confidential and untraceable back to the payer or user.
This suggests that hackers would no longer have the ability to gather personal info from people who use their credit cards to make online purchases. This would undoubtedly decrease 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 discovered that there are a number of different types out there, each with it’s own special qualities.
Here are just a couple of with their descriptions following:
1. Digital Gold Currency – This type is backed by gold stored in vaults. The gold provides an additional measure of security and if you hold this kind of currency, you could potentially directly exchange it for solid gold bullion.
2. Centralized Currency Systems – these are like 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. Also called Hard Electronic Currency, it is meant to be more like utilizing money to make your transaction however your transaction is non-refundable when made. This type of system only operates in one instructions.
The E-cash idea has evolved together with the evolution of the Web. People simply do not feel comfy with giving their individual credit card information over the Internet when buying.
A lot of bad things can take place like identity theft. Nobody desires their identity stolen.
Many companies have attempted to develop this type of payment or monetary system to reduce the risks of shopping online.
Many nations have successfully produced systems for “in-house” usage such as Hong Kong’s Octopus card. This card works similar to 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 utilize the card for anything they require to use it for.
Some countries are working on or have systems that allow the user to transfer money through mobile phones. I believe this is rather like what Chase lets their consumers do. Their consumers can take an image of their check, front and back, with their phone and make their deposit digitally.
I do hope that this gives you some idea 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 bit more to it than I might describe in just one small article but I believe you can get a great concept.