Digital Currencies Vs Cryptocurrencies
Digital Currencies Vs Crypto Currencies
It’s a common notion that digital currencies and cryptocurrencies are the same, however, that is far from the truth.
While both are competing to replace physical money, there are a couple of prominent changes between both the currencies. In this article, we have analysed these currencies and how they differ from each other.
What Are Digital Currencies?
According to the European Central Bank’s 2015 “Virtual currency systems – an additional investigation” report, virtual currency is a digital illustration of value, not published by a central bank, loan institution or e-money institution, which, in a few circumstances, can be utilized as an option to money.
In a nutshell, digital currencies are a different name for cash utilized to pay for particular goods or services over the internet.
As the name suggests, digital money is entirely digital; it doesn’t have a real equivalent in the physical world. However, it works in the same way as physical, standard – or fiat – money.
You can accept, transfer and/or trade digital currency for another currency.
It can be used to spend on goods and services, and it has no geographic or federal borders.
As the lines are now getting blurred as we move to a cashless society, affirming that real money that is utilized online, for banking and retail, etc. should be classified as a digital currency.
What Are Cryptocurrencies?
Cryptocurrencies are algorithm powered currency managed as tokens in preferred online communities and supported by some technologies, assets or projects.
They are frequently utilized in peer-to-peer payments but are now used to spend for real-world
products and services.
Cryptocurrency is safe, secure and reliable as it is based on cryptography.
The skill of writing or interpreting codes, cryptography is a blend of different sciences, with mathematics at its core.
Cryptocurrencies manage Blockchain and a decentralized ledger, which implies that no particular individual or supervisory power controls the activities in the network. It is genuine decentralization
What Are The Core Differences Between The Two?
Though cryptocurrencies are a modification of digital currencies, there are a few fundamental differences between the two, which are given below:
Digital currencies are centralized, indicating that transaction within the network is managed in a centralized area, like a bank. Cryptocurrencies are decentralized, and the majority of the association administers the controls inside the system.
Digital currencies are not translucent. With digital currencies, you cannot select the address of the wallet and view all money transfers from the start of time. This data is kept confidential. Cryptocurrencies are translucent. Anybody and everybody is capable of seeing any purchases made and received by any user, as all income streams are put in a public chain – the Blockchain
Digital currencies have a primary authority that can deal with any difficulties or issues. This central body can, for instance, freeze or eliminate transactions on the application of the participant or the authorities. Their communities govern cryptocurrencies.
Several countries have few legal structures encompassing digital currencies, for instance, the EU’s Directive 2009/110/EC; and the US’ Article 4A of the Uniform Commercial Code. On the other hand, as of now, the same cannot be stated about cryptocurrencies. In many countries, their official situation is not specified.
Is It Possible To Replace Digital Currencies With Cryptocurrencies?
Until now, cryptocurrencies have been just an addition to the global inventory of money. This currency was never developed to replace the fiat money system. However, as the forces that hold this system together have started to look fragile, cryptocurrencies do hold a strong chance of eventually replacing cash.
Moreover, BizzCoin has taken the first step in that direction. This cryptocurrency can be used for a host of various purposes, like shopping from the BizzMart, planning vacations and travel from BizzTravel, and even accepting payment for your business through BizzPOS. In fact, you can even BizzATM for seamless transactions. Due to this, the purpose of digital currencies has become obsolete with the introduction of BizzCoin, as cryptocurrencies not only provide better security, but also allow its users to make transactions for various purposes with ease.