DIGITAL CURRENCY

Presented by : Naman
Roll No. : 22 csu488
What is Digital Currency or Digital Money?

 Electronic money is the money which exists only in banking computer systems and is not
held in any physical form.
 It may refers to several systems which enables a buyer to pay electronically by transmitting
a unique number (called digital certificate) similar to a banknote number.
 Both virtual currencies and cryptocurrencies are types of digital currencies, but the
converse is incorrect.
What Is Cryptocurrency?

 A cryptocurrency is a medium of exchange using cryptography to secure the transactions

and to control the creation of additional units of the currency.
 Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
 There were more than 20000 cryptocurrencies available for trade in online markets now a
days.
Different Systems Of E-Money

 There are three different system namely:

 Centralized System
 Decentralized System
 Offline Anonymous Systems
Centralized System

 Many system such as PayPal, cashU, eCash etc. will sell their electronic currency directly
to the end user.
 Other systems only sell through third party digital currency exchangers.
Decentralized System

 Decentralized e-money is stored and flows through a peer to peer computer network that
directly links users, much like a chat room.
 No single user control the network.
 Some types:
1. Bitcoin
2. Monero
3. Nxt
Offline Anonymous System

 It can be done ‘offline’.

 In this electronic money system, the merchants do not need to have interaction with banks
before receiving currency from the users. Instead of that, the merchants can collect spent
money by users and deposits the money later to the bank.
 The merchants can deliver his storage media in bank for exchanging the electronic money
to cash.
 Comparison

Advantages Disadvantages

Privacy and confidentially Fraud

Security Complexity

Mobility Mass exposure

Record of transactions cross transaction

ANY QUESTIONS
THANK YOU