What are Digital Currencies
A digital currency is like a real currency, but
they are stored and transferred electronically.
The use of digital currency eliminates human inefficiencies in the financial sectors by simply making exchange of money paperless.
Today digital money is being used as a medium of exchange by both small and large companies. An example is Microsoft, The company accepts bitcoin as a payment option to buy apps, games and other digital items from their marketplaces.
Globally, There is a greater customer experience when a company accepts digital currency, It begins with a feeling of Satisfaction.
Unlike other companies that store credit card information whenever a transaction is made thereby, Exposing their users to cyber attack and data breach.
Because it allows for nearly instantaneous transactions all over the world. Bitcoin and other Digital currencies have given birth to many new trends and start-up ideas.
How To Store And Use Digital Currency
All Digital currencies are stored in a Digital wallet, the wallets are capable of housing digital currencies, They work just the way a banking mobile app would, Except they are more secured.
To open a conventional bank account, one needs several documents, such as a valid ID and proof of residence, whereas to create a secure digital wallet it is only necessary to have a valid internet connection.
The digital money is already in widespread usage because they allow for nearly instantaneous transactions.
This money is available for use 24/7 and can be exchanged for real paper money on an ATM machine if needs be.
There is a crucial difference between digital currencies and the currently circulating government issued currencies(Fiat)
Types Digital Of Digital Currency
Digital money is available for use 24/7 and can be exchanged for real paper money on an ATM machine if needs be.
Economically, Digital currencies are made available in two main model,
- Public Digital Currency: This is a form of digital currency that brings technology to a modern scale, Due to the fact that it is built on a public blockchain technology, Anyone can join the monetary system and begin transactions because it is not controlled by a single entity. Currently, Financial applications like Borrowing,lending and trading are being executed online with Public digital currency like Ethereum, as a result poorer individuals with access to the internet gain access to enhanced financial systems, giving them a greater possibility of getting out of poverty.
- Private digital currency: Private digital currency is a permission based currency, entrants to the system require permission to make monetary transactions, It is very similar to traditional banking services since they both have a Man in the middle to validate and forward user request. Private organization are more likely to use a private currency, because it allows invited users to transact without making data public.
Today! value is transacted alongside information through the internet,
As shown in the increased adoption of digital payments by merchants globally. Day to day living can now be facilitated with digital currency.