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Why is blockchain unforgeable?

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 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 “hashFootprint to identify initial data (sometimes unknown) by comparing it to other footprints. In cryptography, afootprint is the result of the application of an encryption software to a given message.“. So it’s as if each page had its own signature. If someone tries to change something in a previous page, it affects all subsequent pages. In other words, if you touch one piece of information in one block, it affects all the others. Any modification is therefore easily detectable.

What’s more, the blockchain belongs to no one in particular. It is said to be decentralized, because it is not controlled by a single entity, such as a company or a government. Everyone can see what’s going on in this ledger and holds a copy of it. Thus, blockchain operates on a distributed network where all data is shared and verified by network participants through 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. Consensus is the collective agreement of all blockchain participants to verify and validate transactions. This mechanism guarantees transparency and resilience.

There are several consensus protocols, such as Proof of Work (PoW) and Proof of StakeBlockchain consensus mechanism attributing the consensus determination by adding blocks to the blockchain to master nodes, having a certain number of coins of this blockchain. This amount is always indicated (PoS), guaranteeing the integrity of the blockchain. If we take the example of 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”, network participants, known as miners, must solve a complex mathematical problem, requiring considerable computing power. By solving it, a block is validated and added to the blockchain. This mechanism guarantees the security and integrity of 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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