Other types of e-payments.

Digital currency, among its various names, is electronic money that acts as alternative currency.

Digital currency exchangers (DCE s, independent exchange providers or e-currency exchangers) are market makers which exchange fiat currency for electronic money, such as digital gold currency (DGC), and/or convert one type of digital currency (DC) into another, such as Liberty Reserve into Bitcoin. Exchangers apply a commission to transactions.

Cryptocurrencies, such as Bitcoin, Litecoin and PPCoin, are a form of digital currency which relies on cryptography, as well as proof-of-work schemes, in order to create, distribute and maintain the currency. Cryptocurrencies are usually peer-to-peer and decentralized.

Financial cryptography (FC) is the use of cryptography in applications in which financial loss could result from subversion of the message system.

Cryptographers think of the field as originating in the work of Dr David Chaum who invented the blinded signature. This special form of a cryptographic signature permitted a virtual coin to be signed without the signer seeing the actual coin, and permitted a form of digital token money that offered untraceability. This form is sometimes known as Digital currency.

A widely-used and previously-developed cryptographic mechanism is the Data Encryption Standard, which was used primarily for the protection of electronic funds transfers. However, it was the work of David Chaum that excited the cryptography community about the potential of encrypted messages as actual financial instruments.

Financial cryptography includes the mechanisms and algorithms necessary for the protection of financial transfers, in addition to the creation of new forms of money. Proof of work and various auction protocols fall under the umbrella of Financial Cryptography. Hashcash is being used to limit spam.

Financial cryptography is distinguished from traditional cryptography in that for most of recorded history, cryptography has been used almost entirely for military and diplomatic purposes.

As part of a business model, FC followed the guide of cryptography and only the simplest ideas were adopted. Account money systems protected by SSL such as PayPal and e-gold were relatively successful, but more innovative mechanisms, including blinded token money, were not.

State the following sentences as true or false:

1. Online money transfers have replaced traditional paper methods.

2. PayPal service isn’t free.

3. Digital currency has the form of e-money.

4. Digital currency exchangers convert one type of digital currency (DC) into another.

5. Dr David Chaum who invented the a cryptographic signature permitted a virtual coin to be signed without the signer seeing the actual coin.

What are Mobile Payments?

There is a whole range of different types of mobile payment services including WAP, SMS, QR Codes, NFC and mBanking. Below is a breakdown of each of these mobile payment services:

SMS Payments: You send a payment request via SMS and a charge is applied to your phone bill. The merchant is informed of the charge and then releases the goods, which are most often digital (i.e. music, ringtones, apps etc.). In some cases an MMS message containing a QR barcode is delivered to you and scanned by the merchant for payment confirmation (i.e. electronic ticketing). This type of payment is often used for charity donations as well..

Mobile Web Payments (WAP): This is just shopping on a mobile website or regular website through your mobile phone browser. You enter your credit card and mailing information onto the website to pay for your desired products or services much in the same way as you would on your PC or laptop.

QR Code: Payment by QR Codes is a fast and efficient contact payment solution via Smart Phones. The user scans a QR barcode using the QR Pal application to complete a payment transaction.

Near Field Communications (Contactless NFC): An NFC enabled phone contains a radio frequency ID (RFID) chip or NFC technology, which communicates with the merchant's terminal allowing transactions to be triggered wirelessly. NFC Payments are currently limited to $15 without entering a PIN.

mBanking: It is now possible to make payments and transfers via online banking and banking applications on your mobile phone.

Source: http://www.qrpay.com/payments

Дата добавления: 2015-11-14