Commoninfo:conversion

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Conversion

Data conversion is the conversion of data from one format to another. Usually with the preservation of the basic logical and structural content of the information.

In the field of computer technology, there are many ways to represent data. In addition, each computer program processes data in its own way. Each time, the data must be converted before it can be read and used by another computer, operating system, or program.

Data transformations can be as "simple" as converting a text file from one character encoding system to another, or complex (for example, converting office file formats or converting image and audio file formats).

Or "complex": conversion may require either the use of a special converting program, or the inclusion of a complex process of passing through intermediate stages, or the involvement of complex "exporting" and "importing" processes of transition from one format to another.

Currency Conversion

Conversion is the exchange of currency during transactions. Conversion is necessary if the currencies of the sender and recipient differ. For example, it occurs when paying for a purchase in a foreign store.

Three currencies are used in the conversion process:
  1. The currency of the transaction, which depends on the receiving party (for example, the seller);

  2. Billing currency, depending on the payment system;

  3. The currency of the account from which the money is debited (for example, the buyer).

If the currencies of the sender and recipient are the same, then conversion is not required. If the currency of the sender or recipient matches the billing currency, the conversion is performed once. If all three currencies are different, the funds are first transferred to the billing currency, and then to the transaction currency.

Currency exchange is carried out at the rate set by a third party : for example, the bank of the sender and recipient of the payment. You may be charged a fee for the conversion.

Cryptographic Currencies

The concept of cryptographic currencies suggested that there would be no need for intermediaries, but in practice and in the conditions of a huge number of cryptocurrencies, we still resort to conversion and third parties in the form of crypto exchanges and exchangers.

To solve these problems, including the risks of trusting a third party, the technology was developed atomic swaps. It was first described back in 2013, but only recently began to be implemented in practice.