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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 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 consensus 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 node 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 volatility, 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 wallet addresses attributable to the investor.

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