FAQ : Definitions and Functioning
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 [...]
What does a cryptocurrency's market cap really represent?
Market Cap, the market capitalization of a cryptocurrency, is a financial indicator that measures the total value of that currency on the market.
Calculating a cryptocurrency's market cap
To calculate it, you multiply the current price of one unit of the cryptocurrency by the number of units that are in circulation.
Market [...]
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 [...]
What is blockchain?
Blockchain 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 [...]
Why is blockchain unforgeable?
Blockchain is often regarded as impossible to falsify, thanks to the fact that it is based on a specific technological process. Blockchain is like a ledger in which each page is a block. Each page contains a kind of unique fingerprint, linked to the previous page, called a "hash". So [...]
Definitions and Functioning
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. [...]
Why is blockchain unforgeable?
Blockchain is often regarded as impossible to falsify, thanks to the fact that it is based on a specific technological process. Blockchain is like a ledger in which each page is a block. Each page contains a kind of unique fingerprint, linked to the previous page, called a "hash". So [...]
What does a cryptocurrency's market cap really represent?
Market Cap, the market capitalization of a cryptocurrency, is a financial indicator that measures the total value of that currency on the market.
Calculating a cryptocurrency's market cap
To calculate it, you multiply the current price of one unit of the cryptocurrency by the number of units that are in circulation.
Market [...]
What's the difference between blockchain and centralized databases?
Blockchain and centralized databases differ in structure and operation. Blockchain is a good solution when immutable, transparent data is required, while centralized databases are better suited to situations where frequent data changes are essential.
The traditional centralized database :
Data storage: the traditional database stores and manages data on a centralized server.
Data [...]
What are the advantages and disadvantages of blockchain?
The advantages and disadvantages of blockchain vary depending on the context of use. For some projects, disadvantages may turn out to be advantages, and vice versa. Here is a detailed list of the main advantages and disadvantages of blockchain:
Key benefits:
Decentralization: With no central control authority, data is stored on a [...]
What types of blockchain are there?
There are 4 types of blockchain network: public, private, hybrid and consortium. We explain their similarities and differences in detail.
public blockchain
The public blockchain is accessible to all, requiring no permission or distinction of rights to participate, consult, modify or validate a transaction. Anyone with an Internet connection can access the [...]
What are crypto-assets?
A crypto-asset relies on cryptography and blockchain technology to ensure its security and authenticate transactions. Unlike traditional digital assets, such as music files, videos, ebooks or software, which do not need the blockchain to exist, crypto-assets are intrinsically linked to this technology.
Crypto-currencies, such as Bitcoin and Ethereum, are the best-known [...]
What are digital assets?
A digital asset is data that has economic, legal or utility value, and is stored or used in digital form. The term cryptocurrency is widely used, although the exact terminology is crypto-asset or digital asset according to the ACPR's official appellation. The term "digital asset" encompasses cryptocurrencies such as Bitcoin, [...]
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 [...]
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 [...]
What is blockchain?
Blockchain 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 [...]
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 [...]
Crypto, how does it work?
Cryptocurrency (crypto-assets or digital assets), often referred to as crypto, represents a form of "dematerialized digital currency". Unlike traditional currencies, it has no physical backing and operates on a decentralized system, outside the control of conventional banking institutions. Cryptocurrencies are held in the form of a cryptographic key, facilitating the [...]