Home / FAQ / Crypto / Definitions and Functioning / What is blockchain?

What is blockchain?

BlockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing is a technology for storing and transmitting information. It is a complete database, containing the entire history of exchanges between users since its creation. Each block is a list of transactions containing a cryptographic fingerprint of the previous block, creating a continuous chain of chronologically linked blocks. The blockchain is decentralised, which means that the management and validation of transactions do not depend on a central authority, but are carried out by a network of participants through a consensusTruth admitted by all system participants. This doesn’t imply that it is the absolute truth or that it’sindisputable, it is the truth participants agree on. In crypto, algorithms beginning with process.

The blockchain, the basis of how crypto-assets work, offers inherent and advantageous features:

Security: eliminating the need for a single central authority, it is less vulnerable to breakdowns or targeted attacks. In a centralised system, the compromise of a single entity can have consequences for the entire network. With blockchain, an attack on an individual nodeIn a blockchain network such as Bitcoin, a node is a computer that stores the entire ledger (all transactionssince the creation of a crypto asset) and transfers users requests to does not affect the entire network, making it a highly secure and resilient technology.
Inalterability: any information recorded on a block is difficult, if not impossible, to alter due to the use of cryptographic hashing.
Transparency: each transaction is visible to all participants in the blockchain, which increases trust within the network.
Traceability: each transaction is permanently recorded on the blockchain for complete traceability.
Autonomy: users participate in the consensus and influence the rules of the network without depending on a central authority. They therefore have direct control over their assets and the operation of the network they use.
Speed: blockchain can also offer advantages in terms of transaction speed. Some blockchains are able to process transactions faster than traditional systems, particularly in cases where intermediaries would be required.

Cryptocurrencies or digital currencies are terms commonly used in the crypto ecosystem. However, the terminology favored by regulators (ACPR and AMF) is crypto-assets or digital assets. This distinction arises because, although often referred to as cryptocurrencies, these assets do not qualify as currencies in the legal sense. They are virtual resources based on blockchain technology, whose value is determined solely by supply and demand.

None of the information contained in this FAQ constitutes investment advice, tax advice, legal advice, or any other type of advice, nor does it serve as an invitation to engage in any form of financial transaction.

Investing in digital assets carries risks and may not be suitable for all investors. It is the responsibility of investors to educate themselves about the risks associated with different digital assets. In particular, it is noted that digital assets can exhibit significant volatilityPrice variation of an asset on a given period., and investments in digital assets involve a risk of capital loss. Accordingly, it is important to remember that the past performance of digital assets, as might be indicated on Banque Delubac & Cie’s website or in documents provided to investors, is not indicative of future performance. Investors should familiarize themselves with the technologies underlying each digital asset and their associated risks, including vulnerabilities, defects, hacks, errors, protocol failures, or attacks on the protocol. Banque Delubac & Cie cannot be held liable for any misunderstanding of the risks associated with digital assets or for any losses investors may incur due to errors in walletPrice variation of an asset on a given period. addresses attributable to the investor.

Most frequently asked questions

How do crypto-assets work?

Cryptocurrencies are forms of value that exist in the digital world. They are based on cryptography, a mathematical science that makes transactions secure and limits the risk of unauthorised access. However, it is important to note that despite these security measures, challenges remain, including the potential risk of cryptojacking and [...]

Read more

What is cryptocurrency mining?

Cryptocurrency mining is the process by which new transactions are added to the blockchain, the technology that underpins cryptocurrencies. This mining process is a bit like panning for gold in a mine, but in the digital age. The term mining was chosen in reference to the similarity of extracting resources [...]

Read more

How does blockchain technology work?

Blockchain technology records data in a decentralised and transparent way, using a computer protocol organised by consensus into a chain of blocks. The blockchain is like a large shared ledger. Popularised by crypto-currencies (crypto-assets or digital assets) such as Bitcoin, it works through a mechanism called "mining", carried out by miners. [...]

Read more

What is cryptocurrency?

Cryptocurrency, also known as crypto, cryptoassets or digital assets, is a form of "virtual currency". However, a crypto-asset is not a currency from a legal point of view. It is a new financial system based on blockchain technology that enables secure, decentralised electronic transactions. These digital assets use cryptography to [...]

Read more

Back FAQ Definitions and Functioning

How could we help you ?

Didn't find an answer in our FAQ? Ask your question via our contact form. We will respond to you as soon as possible.