Webopedia on Google+Webopedia on TwitterWebopedia on FacebookTech Bytes Blog
Main » TERM » D »

digital cash

A system that allows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real dollar bills, the digital cash numbers are unique. Each one is issued by a bank and represents a specified sum of real money. One of the key features of digital cash is that, like real cash, it is anonymous and reusable. That is, when a digital cash amount is sent from a buyer to a vendor, there is no way to obtain information about the buyer. This is one of the key differences between digital cash and credit card systems. Another key difference is that a digital cash certificate can be reused.

Digital cash transactions are expected to become commonplace by the year 2000. However, there a number of competing protocols, and it is unclear which ones will become dominant. Most digital cash systems start with a participating bank that issues cash numbers or other unique identifiers that carry a given value, such as five dollars. To obtain such a certificate, you must have an account at the bank; when you purchase digital cash certificates, the money is withdrawn from your account. You transfer the certificate to the vendor to pay for a product or service, and the vendor deposits the cash number in any participating bank or retransmits it to another vendor. For large purchases, the vendor can check the validity of a cash number by contacting the issuing bank.

29 Free Android Apps for Cash-Strapped Students

From wacky alarm clocks to lecture hall tools and after class entertainment, these Android apps are a good fit for a student's life and budget. Read More »

Sharing Threat Intelligence

A growing number of startups make the sharing of threat intelligence a key part of their solutions. Read More »

Smiley Faces and Symbols

A text smiley face is used to convey a facial expression or emotion in texting and online chat conversations. This Webopedia guide shows you how... Read More »

The 7 Layers of the OSI Model

The Open System Interconnection (OSI) model defines a networking framework to implement protocols in seven layers. Use this handy guide to compare... Read More »

Network Fundamentals Study Guide

Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »

Computer Architecture Study Guide

This Webopedia  study guide describes the different parts of a computer system and their relations. Read More »