The difference between the original ecds bill and the new generation bill

The differences between the original ecds Act and the new generation Act are as follows:

1. Technical basis: ECDS bills are based on the traditional inter-bank communication network, while the new generation bills are based on blockchain technology. Blockchain technology is a distributed database, which can realize the characteristics of decentralization and data tampering, making the new generation of bills have obvious advantages in security and transparency.

2. Transaction speed: Because ECDS is based on the traditional inter-bank communication network, its transaction speed is affected by the processing capacity of banks and network conditions, and it is usually slower than the new generation of bills. The new generation of bills can be traded through the blockchain, which can achieve near real-time processing speed.

3. Transaction cost: The operation and maintenance of ECDS need the coordination and cooperation between banks, so its transaction cost is relatively high. The operation of the new generation of bills does not need the coordination between banks, but only needs one node to complete the transaction, so its transaction cost is low.

4. Application field: ECDS is mainly used for large payment, liquidation and other scenarios, while the new generation of bills is gradually applied to more scenarios, such as supply chain finance and cross-border payment, due to its high efficiency and low cost.

Function of bill

1. payment instrument: bill is a negotiable payment instrument, which can be used to repay debts or pay for goods. For example, commercial bills can be used as a means of payment to pay suppliers; Checks can be used to transfer money between individuals.

2. Credit instruments: Bills can be used as credit instruments to help debtors transfer risks. For example, a bank acceptance bill is guaranteed by the bank, and if the debtor cannot repay the debt, the bank will bear the repayment responsibility.

3. Investment tools: bills are also an investment tool, and investors can get income by buying bills. For example, bond investors can earn interest income by holding bonds.

4. Monetary policy tools: In macroeconomic management, bills can also play the role of monetary policy tools. For example, the central bank can influence the supply of funds in the market by adjusting the circulation of bills.