Trade finance is growing with every successive day and the growth is emerging out with secure and swift technologies of trading. Blockchain is one of the most secure ways of trading as if follows the concept of decentralizing and digitizing the currency. This technology generates a digital record of every transaction and is accessible for long term, it not just record the details of sender but the receiver too making the process rigid and secure. Being a new technology, much folks are now well familiar with it and have a number of confusions and myth about it. There are different concepts based on which blackchain can be segregated from other various trading technologies and also can be understood in the better way.
Concepts of blockchain:
- Blockchain and bitcoins are distinct
In recent few years two names a have gained a lot of popularity in the trading sector and they are blockchain and bitcoins. Being emerged at the same time most of the folks have a misconception that both are same, but the fact is blockchain is the underlying technology on which bitcoin works. Both words are a part of same sector and also are intimately interrelated but both have their own functionalities and importance in the upcoming trading sector. Bitcoin can be defined as the unregulated digital currency whereas blockchain is the technology with which this unregulated currency can be transacted and recorded immortally.
- Public and private access:
Blockchain is a technology of decentralizing the currency and allowing the registered users to read, write, and store the data. By registering over the required platform, the user can send and receive currency too. This is public blockchain which provide access to all registered members. But there is a private blockchain too which only open the access points for the organization. This empowers the organization to edit and change any policy or any other content any time from the platform.