In today’s time where everything is going digital, it’s time to make our payment transactions digital using digital currencies. Digital currency is available in the digital form and not in any physical form just like notes and coins. It has all the features and properties same as of physical currencies but has instant transaction ownership like the examples are cryptocurrencies and virtual currencies. Digital currency is usually a money balance which is stored electronically on a stored value card or any other such device. Digital money can be centralized and decentralized as per the requirements using money supply resources.
There are two types of systems i.e. centralized systems and decentralized systems
- Centralized system which has three payment phases
First is selling the electronic currency directly to the end user, second is using third-party digital currency exchanger and third is through electronic money a system which uses contactless payment transfer to provide easy payment.
- Decentralized system
Cryptocurrency comes under the category of digital token which relies on the cryptography and conducts peer-to-peer networking and decentralization for chaining together different digital signatures. Also, cryptocurrency permits electronic money systems to get decentralized which has different systems like
Bitcoin is a new and revolutionary payment system which is purely a part of virtual digital currency payment transaction mode. It works without any kind of help or intermediate to make payments. Considered as the decentralized digital currency system, it has been release on 3 January 2008 and making huge impact since its origin. Bitcoin follows a peer to peer network while doing online payments as it is considered more secure and reliable to make online payments virtually and in the form of digital currency. Such transactions are saved on a distributed ledger known as blockchain.
If we take a look on Blockchain then usually blockchain can be defined as a digital ledger which keeps the record of all the virtual transactions. It has been analyzed that blockchain is considered as the revolutionary face of decentralization which is going to make huge changes in the coming years.
Living in the 21st century it is important to walk with current technology trends. As the world is going digitally virtual, now it’s high time to make some changes or upgradation in your current style of handling business. A blockchain dependant computing platform which has smart contact feature is called as Ethereum is doing a fabulous job on the grounds of virtual payment. It’s a payment platform which is based on blockchain which has a distributed network. Ethereum provides a virtual machine known as Ethereum Virtual Machine which executes scripts using public node network.
3. Ripple Monetary System
Ripple is a real-time gross settlement system and a currency exchange network offered by Ripple. It is released on 2012 having a distributed protocol having ledger and cryptocurrency known as XRP. Usually, Ripple is developed for providing highly secure, quick and free transactions worldwide. Banks from all over the world are adopting Ripple to offer the best payment infrastructure to people around the world. As Ripple offers extremely secure and reliable payment transaction, banks are adopting it to provide safe payments.
Litecoin was released on 7 October 2011 and is nearly similar to Bitcoin and has identical features. Litecoin comes beneath peer-to-peer cryptocurrency & software project which is released below the MIT/X11 License. No medium is required while performing the transfer of coins using cryptographic protocol in the whole transaction process. As it uses proof-of-work algorithm which has a memory-hard function this requires memory in contrast of an algorithm which is not memory-hard.
Nxt was launched on 24 November 2013 and is an open source cryptocurrency and a payment network. It makes use of proof-of-stake to reach an agreement for transactions as there is a static money supply just like Bitcoin. Nxt was envisioned as a flexible platform to build apps and different financial services. Users can build new currencies in the system. Nxt has different features like multisignature capability and the plug-in system for every single client. The different features of Nxt are Data storage, Alias system, Asset exchange, Voting system, Plug-in support, Monetary system, multi-signature and phased transactions.
Decentralized systems are growing rapidly in today’s 21st century. It is important for us also to walk with current digital trends and get the best and serve the best technology. The problem of payments has always been there but now with such amazing virtual payment modes, things are getting simpler with time. If you have an e-commerce store and worried about safer online transactions, then this is the right time to get a customized virtual payment transition app and remove all your tensions.
Different Consequences and Benefits of Digital Currencies in Today’s Digital Era
Speedy and cost-effective bank transfers
The way banks works today is no longer remain archaic. Now, using today’s digital currency payment transaction modes, international bank transfers takes not more than a week with the country-specific clearing houses and correspondent banks. Using the most current digital currency i.e. Bitcoin, now bank money transfers can be done instantly, safely and affordably without facing any challenges and frictions. Ripple Labs supports a protocol that allows clients to easily transfer funds from one currency to the other one i.e. for example, Dollar to Euros with the help of secure digital ledger.
Improved Global Payments
Every year people who are living away from their family in other countries send home more than $400 billion in the payment, this amount crosses the foreign direct investment policy. But in today’s ever-escalating digital environment, it is possible to help such people in their payment transfer process easier, faster and at cheap prices. With the help of virtual currency, people can send money to their family members using mobile phones and fees that will be charge only for currency exchange. Traditional money transfer companies are continuously trying to cut sown the expenses attached with the transfer of one currency to another.
Safer for Poor
Digital currencies are spreading convenient and safe payment transactions in all the countries where most of the people don’t own a bank account. Using Bitcoin, people can keep their money in the digital form and can prevent it from fraud or theft. It is better to store your money on the digital form rather than consuming it in the form of gold or keeping cash at home. A person who has Bitcoin can exchange it for better currency on global Bitcoin exchange. This can add huge entrance to international financial markets by allowing the unbanked to save and protect from inflation.
Augment the power of e-commerce
In today’s time, the risk and concern for a credit card over online shopping has increased among people. This fraud is more common at global level transactions and this is the reason that many organizations avoid international payments. But with the help of digital currency like Bitcoin and more, the whole transfer cannot be undone as soon as it is done. This removes the risk of fraud which is usually related to merchants and allows them to sell all over the world. Virtual currency provides an easier and highly flexible payment process to customers which customers enjoy a lot. This is the reason that with the help of digital currency even small business is developing worldwide and engaging more in the global e-commerce world .
Why you should adopt or upgrade your payment gateways to virtual digital currency?
If you are still stuck with the old physical money transaction methods, then now it’s high time to adopt or upgrade your payment gateways to virtual digital currency. Get the best-customized solutions in the New Year 2018 and take your business to the next successful level. If you want to boost your business sales and revenue then it is important to keep your business up-to-date using the latest tools and technologies. Transform the whole online payment transaction and adopt the new virtual digital currency method.
Agile Infoways being the leading Web and Mobile App Development Company since 2006 is doing a fabulous job in delivering customized IT solutions all over the world. We are a team of experienced and skilled developers who know how to handle complex projects or simple projects in a systematic manner. Our developers are proficient in handling customized payment gateway apps which is the trending topic of today’s digital currency world. We have all the experience to serve you with the best and customized payment gateway apps in cost-effective and reliable ways.