eCash, or electronic cash, is a form of digital currency that allows for the secure, anonymous, and untraceable transfer of funds. It was first conceived by David Chaum as an anonymous cryptographic electronic money system in 1982 and was realized through his corporation Digicash. The eCash software stored money in a digital format, cryptographically signed by a bank, and allowed users to spend the digital money at any shop accepting eCash without having to open an account with the vendor first or transmitting credit card numbers. Security was ensured by public key digital signature schemes.
Today, the term eCash is used for the digital cash that can be stored on an electronically sensitive card, including online or alternative payment portals and mobile applications. Electronic cash represents a way of paying for something without using physical currency. Users would convert the money in their bank account to eCash, which they could then use to make electronic payments or execute a peer-to-peer transaction when sharing money between friends.
The benefits of eCash include convenience, security, anonymity, and untraceability. It is also decentralized, which means it is not controlled and supervised by a central authority such as a government or a bank. This can be useful for people who do not trust traditional financial institutions or live in countries where the government needs a better track record of handling financial transactions.
