Hello, it has been one week time I never update my blog, last two week I have share with all of you about revenue model of some e-commerce website and discuss with all of you whether there are some threat of internet or how safe of our data is. I think it make all of you understand even more how online transactions work and how we can be safe by using it. Today, I will like to share further with all of you again, which it is about how actually those payments being make for those transactions online? If all of you still confuse how online transactions make the payments and receive the payment, here got some useful information for all of you. Actually those payment make or transfer is calls Electronic Currency.
Electronic Currency (also known as electronic money, digital currency, digital money, electronic cash, digital cash, and digital money) is the money or scrip which is exchange electronically, which is through use of computer network, internet and also digital stored value systems. In more detail, e-currency means the money that can use for shopping, do investment via internet by through credit card payment or some other payment methods. There are few popular example of electronic currency which is:
~Webmoney
~1MDC
~ e-gold 
~e-bullion
~ Pecunix
~ Liberty Reserve
Typically it has two major types of electronic currency, which major different is the backed base, the types is describe below:
1) Backed by Precious Metal – such as e-gold which it is backed by gold 
2) Backed by Hard Currency – example like Paypal
This is the link that got further explanation of the type of electronic currency:
http://www.giexc.com/
There are some major characteristic of electronic currency which is:
• The transfer of electronic currency is instant and ‘real time’ and cannot be reversed. It is just same like when you have purchase a cup of drink from a restaurant and you had pay for it, after that if u suddenly feel regret and would want to refund back for the payment, it is impossible because the transactions are final and not reversible in this kind of situation, so same situation apply by using electronic currency.
• Secondly, the transfer of electronic currency is private and anonymous for the sender and receiver, it means that normally it would not show the real identification of the sender and receiver and generally the account titles shown during transaction are numbers, nick names or email addresses. Additionally, just like actual cash, the source of the funds is never disclosed to the receiver.
Further explaination:
http://www.nowpublic.com/what_is_digital_currency_digital_money_real_cash
Requirement of Electronic Currency
1) Security
2) Anonymity
3) Scalability 
4) Acceptability
5) Off-line Operation
6) Transferability
7) Hardware Independent
For the explanation and example of above requirements of electronic currency, you can refer to this link file:
http://clifford.neuman.name/papers/pdf/9311_netcash-medvinsky-neuman-cccs93.pdf
After share with all of you about the types, characteristics and requirements of the electronic currency, now I would like to share about benefits and limitation or disadvantages using electronic currency.
Benefits
1) Convenient
- provides users a quick, simple and safe way for shopping instead of showing their credit card information to merchant who they do not know
- offer a variety of services without having to handle physical cash or checks. Customers do not have to wait in lines; this provides a lower-hassle environment.
- Debit cards and online bill payments allow immediate transfer of funds from an individual's personal account to a business's account without any actual paper transfer of money. It saves up the time of process and doing paper work.
2) Low Transactions Cost
- Unlike other businesses that eat up your profit with exorbitant fees, electronic currency trading allows you to do business with minimal fees giving you more profit and more money for you.
3) Anonymity and Detection of Double Spender
- Highly confidential for users ID and also information and real-time checking of all transactions make the possibility of multiple expenditures negligible.
4) Globalization
- allows access to a global market where not restricted and controlled by local currencies.
Disadvantages or limitation:
1) Fraud or Criminal Activities
- hacking into bank accounts and illegal retrieval of banking records has led to a widespread invasion of privacy and has promoted identity theft.
2) Failure of Technology
- such as network breakdown, defected by virus or worm, power failure that cause loss of data and record may be one of the issue of electronic currency.
3) Privacy
- it is still an issue of how safe the confidential information of a credit card or debit card holders to be protected and personal information will not be misuse.
4) Costly to Implemented and Massive Databases
- Additional required of hardware is quite costly for installation and the bank have to maintain a detailed and confidential database which required them to have massive databases.
Below are some link that describe further about the Advantages and Disadvantages of electronic commerce, anyone interest can surf for it and understand it further.
• http://www.romow.com/business-blog/benefits-of-e-currency-trading/
• http://www.iit.edu/~peacjen/cs485/ecash2.htm
• http://www.buzzle.com/articles/advantages-and-disadvantages-of-electronic-cash.html
• http://www.businesspme.com/uk/articles/trade/90/Electronic-money---advantages-and-disadvantages.html
• http://www.learncurrencytradingonline.com/electronic-currency-trading.html
0 comments:
Post a Comment