What’s the difference? And how is Mesh using Smart Assets and blockchain technology to reshape the world of capital markets?
A blockchain is a decentralised ledger that records all transactions across a distributed, peer-to-peer network of computers.
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 decentralised, which means that no single person or organisation has control over them. Instead, all users have collective control, and the ownership information is visible to everyone.
It’s important to know that decentralised blockchains are immutable, which means that the data entered is irreversible and cannot be edited or deleted.
Now the information you store in those blocks (or that blockchain) could be anything, really… from medical records to supply chain records to financial transactions.
By using blockchain technology, participants can confirm transactions without the need for a central clearing authority. In a financial setting, that means you can transfer funds and settle trades without needing the approval from an intermediary or governing body. You’re in charge of what you do.
Cryptocurrencies – like Bitcoin, Ethereum and Matic, to name but a few – are digital currencies that are decentralised and don’t need intermediaries (like central banks) to issue them. Cryptocurrencies are issued and hosted on a blockchain, which is where the confusion comes in.
Cryptocurrency is one application that uses blockchain technology, which is the underlying technology that enables crypto transactions to be tracked securely and transparently. To put it another way: crypto is a great example of the blockchain in action.
They’re not the same thing, but they exist in the same high-tech, digitally-driven world.
It’s important for investors and issuers to understand this difference, because Mesh is so much more than simply a crypto marketplace. Mesh leverages blockchain technology for cryptographic security and transparency, but predominantly what you trade on our platform are tokenised financial assets.
Mesh is the only platform to offer Smart Assets, which are tokenised financial products that are created through and on our platform and cannot be found anywhere else. These assets include all major financial asset classes, including equities, debt, commodities and so on – along with their derivatives, as well as interesting combinations of instruments and payoff structures.
At Mesh, blockchain technology sits at the core of our multi-sided capital markets platform, enabling businesses wanting to raise capital to issue and tokenise these unique Smart Assets, to trade them directly with investors on the platform, and to execute and manage all corporate actions required over the asset’s lifetime.
We don’t have our own blockchain; instead, we use the Stellar blockchain, which is a trusted open-source, decentralised protocol that was built to handle currency and cross-border transactions at scale. This allows our investors and issuers to trade anywhere and at any time, without having to worry about locations or office hours.
We are shaping the future of capital markets, and we’re doing so by using the next generation of financial technology, or Finance 3.0 as we like to call it. Our platform facilitates dynamic and liquid markets that list interesting smart assets – safely, securely and transparently.
