Digital currency meaning
Trading and Service with Digital Coin
Digital coins hold two main purposes i.e. trading and service. People can trade bitcoins in exchange for other currencies. In exchange for bitcoins, Euro, USD, INR, and Ruble etc are the currencies a user can avail. Alcurex and Cryptopia are some of the best exchanges available. In case of service, the coins can be used in finance & marketing, Internet & mobile services and physical products.
There are two major systems for money transactions i.e. centralized systems (with authority) & de-centralized systems (with no authority). In systems with the central authority, third parties such as banks, credit card issuers etc. operates the money. In systems with no authority, there is a direct money transfer from sender to receiver.
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A digital coin solely relies on a decentralized network and works on the principle of cryptography. It is a way of developing secure communication. Due to many benefits, Digital coins are preferred over centralized systems. Firstly, Central authorities have no involvement in account generation. Secondly, transaction costs are minimal.
Mining of digital coin
Advanced devices such as ASIC (Application Specific Integrated circuit devices) or GPU (Graphical Processing Unit) are exclusive platforms for generating these coins. Once generated, users can store it in wallets or send it to other users. Coins are compatible with operating systems such as Android, Mac or Linux.