How does collabedit works?

I can not understand what is the difference between normaledit and collabedit

When I open in collabedit the same zoho url in two different browsers it tells me Sorry, We could not process your request !

Can you provide a How-To for collabedit?

I guess reposting my file does not make sense because how would Zoho know that it is the same file? Just by file name? And if I have many users who has different folders, so can happen they have the same file name?

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