The term ‘cryptocurrency’ brings up an array of strong emotions. Some people see it as a sure way to make money. Others fear that it’s a fraudulent device pushed by unscrupulous marketers to swindle naive investors. However, there is another layer to all this that you might not have considered – blockchain technology. In this article, we will be exploring what exactly blockchain is, how it works, and a few disclaimers
What is Blockchain?
Blockchain is a cloud-based software platform that supports cryptocurrencies like Bitcoin and Ethereum, as well as other blockchain assets. It provides a range of services including asset issuance, settlement, custody, settlement tracking, and audit.
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The Benefits of Using Blockchain
• Secure Storage – Blockchain’s asset management software provides a range of asset management solutions. They include secure storage, accounting, and auditing services. These solutions are designed to support compliance and security standards, while also offering customizable features.
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• Asset Issuance – Blockchain’s software platform provides a range of features designed to support the issuance and trading of assets including crypto assets. Asset issuance is one of the core functions that blockchain can perform
• Asset Tracking – Asset tracking is another key function that blockchain can perform. It involves tracking asset transfers, ownership, and other activities related to asset management.
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• Settlement – Blockchain’s marketplace function helps to improve the settlement process. It uses smart contracts to enable decentralized and automated trading. This helps to reduce the cost of issuing and trading assets, resulting in cost savings for fund managers.
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How Does Blockchain Work?
Blockchain’s asset management software provides the infrastructure for managing various asset types. This includes managing crypto assets, equities, fixed income, commodities, and other assets. It also offers features like trade execution, settlement, and clearing. The asset issuance function of the blockchain platform is designed to support the creation of asset-backed tokens.
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The platforms use mining to issue tokens and create tokens. They can be created using the company’s token sale function or using Smart Contract Technology.
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The settlement function of the blockchain platform is designed to facilitate the trading and settlement of tokens in real time. It uses a distributed network that operates autonomously. This distributed network operates similarly to how the internet operates.
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What Does the software Consume?
Blockchain’s software consumes a range of services like storage, network, computing, security, and various APIs. The platform has agreements with various service providers and data centers. They use a combination of cloud, on-premises, and/or private data centers.
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The software provides a range of services including data storage, processing, networking, security, settlement, and settlement APIs to various financial institutions and institutions that manage financial assets. Blockchain has a tiered pricing structure for data storage and settlement services. This helps to manage the cost of providing these services.
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Technology Advantages Disclaimer:
The technology that blockchain uses is still in its early stages. It might take a while before it becomes widely adopted. However, using blockchain technology, ensures that asset management companies have access to cutting-edge technology.
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Asset issuance, tracking, and settlement are some of the key benefits of using blockchain technology. This helps to create custom tokens that are backed by different assets like commodities, securities, currencies, and equity.