Electronic currency is also known as digital currency, digital money, digital cash, electronic money or electronic cash. It refers to money which transferred electronically through the computer networks, internet or digitally stored value system. The examples of electronic money are Electronic Funds Transfer (EFT) and direct deposit.Advantages of using Electronic Currency
1. The electronic currency provides a confidentiality and privacy for the users. There is no way to obtain the information about the users when an electronic currency amount is sent from users to others. It is a totally anonymity in which the personal identifiable records are not present to others. This is a different between the electronic currency and credit card.
1. The electronic currency provides a confidentiality and privacy for the users. There is no way to obtain the information about the users when an electronic currency amount is sent from users to others. It is a totally anonymity in which the personal identifiable records are not present to others. This is a different between the electronic currency and credit card.
2. Electronic currency is international. It is acts an important role in helping the international entrepreneur to sell their product or service to worldwide through computer networks. Therefore, electronic currency make an instantaneous transfer of money with the easily and quickly convert to the cash in anywhere.
3. The security of electronic currency is using the encryption called RSA cryptography. The manufacturers of RSA cryptography technology will eliminate the risk of breaking the code of digital signature by developing longer keys. In order to enact the digital signature, it requires a trustworthy system by using the certification authority.
Disadvantages of using Electronic Currency
1. A major problem related to the electronic currency is fraud. If the users misplace their private keys, it will allow the perpetrator to use it to withdraw the funds without their concern. 2. Double spending of digital coins is another problem related to the electronic currency. If the users do not include bank as an intermediary in the transaction, this will cause the coins are intercepted or sent wrong to the receiver. Therefore, the users have to bear the risk of the transaction and no right to recourse on it. However, if the users included the bank as an intermediary, the bank will check the coins for double spending to protecting the users.
For further information, please refer the following links:
No comments:
Post a Comment