Electronic currency also known as e-money, electronic cash,, digital money, digital cash or digital currency). Electronoc currency refers to money or scrip which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money. Also, it is a collective term for financial cryptography and technologies enabling it.
One rare success has been Hong Kong's Octopus card system, which started as a transit payment system and has grown into a widely used electronic cash system. Singapore also has an electronic currency implementation for its public transportation system (commuter trains, bus) A very successful implementation is in the Netherlands, known as Chipknip.
Public-key cryptography and digital signatures (both blind and non-blind signatures) make e-money possible. It would take too long to go into detail how public-key cryptography and digital signatures work. But the basic gist is that banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. A private key known only to the owner, and a public key, made available to everyone. Whatever the private key encrypts, the public key can decrypt, and vice verse.
There are two varieties of each type of electronic currency: online e-money and offline e-money. Online means you need to interact with a bank (via modem or network) to conduct a transaction with a third party. Offline means you can conduct a transaction without having to directly involve a bank. Offline anonymous e-money (true digital cash) is the most complex form of e-money because of the double-spending problem.
The are examples for electronic currency:
- BitPass - Established Dec 2002, Shut down Jan 2007
- Click and Buy - still in operation
- PayLoadz - still in operation
- Paystone Technologies - still in operation
- Peppercoin - - still in operation
- Beenz- collapsed in 2001
- DigiCash - pioneer of electronic currency, filed for bankruptcy in 1998. A new DigiCash was established recently.
- Flooz - established Feb 1999, closed down in August 2001
With using electronic currency, it make our life became easy and not need have to keep a lot of money in the purse.
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