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Blockchain vs. Cryptocurrencies: Mesh Trading
What is the difference? And how Mesh is used Intelligent resources and blockchain technology to reshape the world of capital markets?
What is blockchain?
A blockchain is a decentralized ledger that records all transactions across a distributed, peer-to-peer computer network.
Think of it as a shared database that stores information in a series (or chain) of blocks, linked together via highly secure cryptographic codes. Many blockchains are decentralized, meaning that no single person or organization has control over them. Instead, all users have collective control and ownership information is visible to all.
It is important to know that decentralized blockchains are immutable, meaning that the data entered is irreversible and cannot be modified or deleted.
Now, the information stored in those blocks (or that blockchain) could be anything, really… from medical records to supply chain records to financial transactions.
Using blockchain technology, participants can confirm transactions without the need for a central clearing authority. In a financial context, this means you can transfer funds and settle trades without needing approval from an intermediary or government body. You are responsible for what you do.
How blockchain is different from cryptocurrencies
Cryptocurrencies – such as Bitcoin, Ethereum and Matic, to name just a few – are decentralized digital currencies and do not require intermediaries (such as central banks) to issue them. Cryptocurrencies are issued and hosted on a blockchain, and this is where the confusion comes in.
Cryptocurrency is an application that uses blockchain technology, which is the underlying technology that allows cryptographic transactions to be tracked securely and transparently. To put it another way: Cryptocurrencies are a great example of blockchain in action.
They are not the same, but they exist in the same high-tech, digital-driven world.
How Mesh uses blockchain
It is important for investors and issuers to understand this difference, because Mesh is much more than just a cryptocurrency marketplace. The network uses blockchain technology for cryptographic security and transparency, but predominantly what you trade on our platform are tokenized financial assets.
Mesh is the only platform to offer Intelligent resources, which are tokenized financial products created through and on our platform and which cannot be found anywhere else. These assets include all major financial asset classes, including equities, debt, commodities, etc., along with related derivatives, as well as attractive combinations of instruments and return structures.
TO SweaterBlockchain technology is at the heart of our multi-sided capital markets platform, enabling companies looking to raise capital to issue and tokenize these unique Smart Assets, trade them directly with investors on the platform, and execute and manage all corporate actions required in the life course of the asset.
We don’t have our own blockchain; instead we use the Stellar blockchain, which is a trusted open source decentralized protocol, created to manage currencies and large-scale cross-border transactions. This allows our investors and issuers to trade anywhere, anytime, without having to worry about locations or office hours.
We are shaping the future of capital markets and we are doing so using the next generation of financial technology Finance 3.0 as we like to call it. Our platform facilitates dynamic, liquid markets that list attractive smart assets – safely, securely and transparently.