The customer is always right!
11 years ago
Sunday, July 5, 2009
Electronic currency known as e-money, electronic cash, digital money, digital cash or digital currency it is refers to money or scrip which is exchanged only electronically. Typically, e-currency involves use of computer networks, the internet and digital stored value systems which is refers to stored-value card. The examples of e-currency are Electronic Funds Transfer (EFT) and direct deposit as well as a collective term for financial cryptography and technologies enabling it.
The interesting problem for electronic currency is cryptography to date, use of digital cash has b
een relatively low-scale. however, the was one rare success which is Hong Kong's Octopus card system, which started as a transit payment system and has grown into a widely used electronic cash system. Singapore also has an electronic money implementation for its public transportation system for example commuter trains, bus, and etc while it is very similar to Hong Kong's Octopus card and based on the same type of card (FeliCa). There is also one implementation in the Netherlands, known as Chipknip.
Technically electronic currency is a representation or a system of debits and credits w
hich used to exchange value within another system or itself as a stand alone system whereby online or offline. Sometimes the term electronic currency is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. Some private organizations, such as the US military use private currencies which is Eagle Cash. Many systems will sell their electronic currency directly to the end user such as Paypal and WebMoney, but other systems such as Liberty Reserve, sell only through third party digital currency exchangers.
In the use of off-line electronic currency, the merchant does not need to interact with the bank before accepting a coin from the user. Instead he can collect multiple coins Spent by users and Deposit them later with the bank. In principle this could be done off-line, for example the merchant could go to the bank with his storage media to exchange e-cash for cash. Nevertheless the merchant is guaranteed that the user's e-coin will either be accepted by the bank, or the bank will be able to identify and punish the cheating user. In this way a user is prevented from spending the same coin twice (double-spending). Off-line e-cash schemes also need to protect against cheating merchants, such as merchants that want to deposit a coin twice.
hich used to exchange value within another system or itself as a stand alone system whereby online or offline. Sometimes the term electronic currency is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. Some private organizations, such as the US military use private currencies which is Eagle Cash. Many systems will sell their electronic currency directly to the end user such as Paypal and WebMoney, but other systems such as Liberty Reserve, sell only through third party digital currency exchangers.In the use of off-line electronic currency, the merchant does not need to interact with the bank before accepting a coin from the user. Instead he can collect multiple coins Spent by users and Deposit them later with the bank. In principle this could be done off-line, for example the merchant could go to the bank with his storage media to exchange e-cash for cash. Nevertheless the merchant is guaranteed that the user's e-coin will either be accepted by the bank, or the bank will be able to identify and punish the cheating user. In this way a user is prevented from spending the same coin twice (double-spending). Off-line e-cash schemes also need to protect against cheating merchants, such as merchants that want to deposit a coin twice.
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