gLaM_QuEEn's Views On Electronic Currency

ELECTRONIC 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.

HOW DOES IT WORK???



In the basic electronic cash system, the user's equipment generates a random number, which serves as the "note". His equipment then "blinds" the note using a random factor (see sidebar) and transmits it to a bank. In exchange for money debited from the user's account or otherwise supplied, the bank uses its private key to digitally sign the blinded note, and transmits the result back to the user. The user's equipment unblinds the note, which it later pays with. The payee checks that the note's digital signature is authentic and later sends the note on to the bank, who in turn checks the signature and credits the payee accordingly. (As provided by DigiCash)

The main focuses of digital cash development are:
1) being able to use it through a wider range of hardware such as secured credit cards; and
2) linked bank accounts that would generally be used over an internet means, for exchange with a secure micropayment system such as in large corporations (PayPal).



One such e-micropayment system is DigiCash. DigiCash Inc. was a pioneering electronic currency corporation founded by David Chaum in 1990. DigiCash transactions were unique in that they were anonymous due to a number cryptographic protocols developed by its founder. DigiCash declared bankruptcy in 1998, and subsequently sold its assets to eCash Technologies, another digital currency company, which was acquired by InfoSpace on Feb. 19, 2002. However, a new DigiCash was established recently. Digicash was founded in September 2005 by a team of software industry veterans and members of elite technology units of the Israeli Army.



Based on patent-pending technology, Digicash provides a digital implementation of online offers and digital currency empowering businesses to convey tangible and persistent incentives to consumers instantly and in any online context.

Electronic cash by DigiCash is a new concept in payment systems. It combines computerized convenience with security and privacy that improve on paper cash. It adds value to any service involving payment and its versatility opens up a host of new markets and applications.

DigiCash works with payment system and service providers in all phases of electronic cash innovation. Its technology is unique as it was invented by the team behind it which makes it world-class experts in its fields. DigiCash team brings together top cryptographers and payment-system specialists with some of Europe's best software and hardware specialists.



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