N-GEN Communications Web-based Seminars ©NGCS

Seminar - An Overview of Communications Technologies

Module 6 - Internet, Intranet, Extranet, e-Commerce and Web Services                                      Slide 37 of 70 _________________                                                                                  __________

                                                What is a Digital Currency?

                                    A Representation of Value of Physical Cash

                                    Allows Users to Move Funds Electronically Within
                                      an Environment

                                    Requires Loading of Funds (Physical Cash)

                                    A Secure Transaction over Communications Network
                                      is a Must

_________________                                                                                  __________

The Digital currency concept has been the market place in many forms. Digital currencies are intended to permit their users to transfer funds within an environment. Digital currencies are designed to serve as the electronic version of physical cash. Digital currencies depend on a secure communications system. There are two types of digital currency systems: Smart Card and PC-Based.

Smart Card - A Smart Card carries stored information such as consumer payment limits. The information is retained on a micro-chip embedded on a card. There are many other types of card systems but Smart Card carries more information than other cards. This method of payment is more acceptable than PC-based payment

PC-Based system - It is a purely electronic transmission system. Electronic Payment Systems are embedded within a Web-browser for Internet buyers. Most retailers invoke the browser's security function for the financial transaction. This kind of payment system is suited to consumers and vendors in remote locations.