Working of E-cash:
E-cash is based on cryptographic systems called “Digital Signatures”. This method involves a pair of numeric keys (Very large no’s)
– One for locking (enclosing)
– Another for unlocking (decoding)
– Encoding key is kept private and the decoding key is made public. These digital signatures are very secured way for e-cash.
Electronic cash fulfills two main functions:
1) As a medium of exchange.
2) As a store of value.
Digital money is a perfect medium of exchange e-cash would be allowed to realize it’s potential for bypassing the transaction costs of the foreign exchange marked.
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