Digitized currencies Develops business and industries world strides unprecedented, where he witnessed an unprecedented growth of large entities seeking, of course, to conduct safe transactions, and to go to the economy of ciphertext encrypted currencies. But there are those who mix digital and encrypted currencies, despite the big differences between them.
Although encrypted currencies are a type of digital currency, there are some basic differences between them, which will be explained in the following points.
Digital currencies are amounts available in the form of numbers that are used electronically over the Internet, and have no physical presence unlike traditional currencies. You can access, transfer and exchange them to other currencies through dedicated electronic platforms. You can use it to pay the value of purchases or service bills.
Coded currencies are a variety of digital currencies but are encrypted with their own system, they represent the origin used as a means of exchange. It is reliable because it is based on a complex cryptographic system based on cryptography, making it secure and protected. Where algorithms are created and analyzed that allow encryption of data so that no information is changed or is available to a third party.
Digital currency is a central currency, organized by a group of people and computers that regulate the status of transactions in the network, while encrypted currencies are decentralized, based on distributed systems that manage transactions.
Confidential identity used
Digital currencies require user identification and transaction data, while financial transactions in encrypted currency do not require disclosure of transaction identity or data in encrypted currency portfolios that do not contain private and confidential information such as name and address.
Digital currencies are not transparent. The financial transactions can not be tracked and we can not see remittances. This information is kept private only by digital currency providers, but it is a bit different with encrypted currencies, where anyone can see the transactions of any user. Revenue in a general series.
Transaction processing and conversions
There is a central authority that handles all cases and transfers related to digital currencies and can cancel or freeze transactions at the request of the participant or authorities or when suspected fraud or money laundering. Coded currencies are the opposite; Transactions and remittances are organized through a distributed system of computers.
Most countries have some legal framework for digital currencies, such as EU Directive 2009/110 / EC and Article 4A of the USC. Encrypted currencies have no legal framework in most countries.
Mediation or a third party
Digital currencies are central currencies and are usually subject to a third broker in the government or entity responsible for the issue, while the encrypted currencies have a system and a protocol called a proxy or a decentralized digital accounting book . This means that no third authority controls all transactions, transactions, transfers, and transmissions in the network.
Governor of the Saudi Arabian Monetary Agency (Sama), announced the launch of the project for the launching of a pilot digital currency with the UAE in the first quarter of this year.
The cash-encoded currency is issued only by central banks and will be used experimentally for a limited number of types of payments between central banks or participating commercial banks, not for individual use. The Governor of the Saudi Arabian Monetary Agency (SAMA) has announced the launch of the technical project for the launching of a pilot digital currency with the UAE in the first quarter of this year.