What is the difference between cryptocurrency and digital currency?

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Meconomy153
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What is the difference between cryptocurrency and digital currency?

Post by Meconomy153 » Sun May 03, 2015 5:05 pm

The mistake that a digital currency and a cryptocurrency are the same things, is made often. It is true that Maxcoin is both, a cryptocurrency and a digital currency. But what exactly is a digital currency? And what is a cryptocurrency? What exactly is the difference between those two currencies?

A digital currency is a virtual currency. It is a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the member of a specific virtual community. It is a medium of exchange that operates like a currency in dome environments. But it doesn’t have all the attributes of real currency, like real paper money or coins.

A cryptocurrency is currency based on certain principles of cryptography. It is a type of digital token that relies on these principles to chain together digital signatures of token transfers. It is based on a peer-to-peer network and it is decentralized.

A digital currency is not always a cryptocurrency. Crypto currencies are always digital currencies.

MaxFreak
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Joined: Wed Jul 29, 2015 5:40 am

Re: What is the difference between cryptocurrency and digital currency?

Post by MaxFreak » Wed Jul 29, 2015 11:26 am

In most situations, crypto currency is also a digital currency, though, in even more cases, digital currency is not a crypto currency. I think that is the best way to put it.

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