What makes bitcoin secure?
Bitcoin’s security is based on a combination of technologies and fundamental principles. At the heart of this security lies the 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, a decentralized public register that records all transactions. This technology ensures the immutability and transparency of transactions, making it difficult to alter them once they have been recorded.
Cryptography also plays a crucial role. Each user has a pair of keys: a public key to receive bitcoins and a private keyOne of the two components of a crypto wallet, it gives the digital assets’ ownership and must stay
confidential. to sign them.
Security is further enhanced by the Proof of WorkOldest consensus algorithm, on which Bitcoin is based. On public blockchains, the consensus algorithm choses the block that is added to the blockchain at a given time and the “truth” 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 mechanism, which involves miners in validating transactions and adding new blocks to the blockchain.
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.
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