Blockchain News

Blockchain — FAQ

Block­chain is ano­t­her invi­si­ble tech­no­lo­gy giant hea­ding into the digi­tal future. Worldwide, work is being done on indi­vi­du­al solu­ti­ons rela­ted to block­chain. The pace is breath­ta­king. If you are not care­ful, digi­tal demen­tia is about to be threa­tened here. The fol­lowing lines can bring – right com­pact – a litt­le light into the darkness.

Blockchain tech­no­lo­gy was first deve­lo­ped for Bitcoin, a pri­va­te digi­tal money sys­tem. Blockchain tech­no­lo­gy takes over the func­tion of a regis­ter in which money tran­sac­tions can be stored secu­re­ly. This tech­no­lo­gy can be used far bey­ond Bitcoin.

Since then, block­chain tech­no­lo­gy has been fur­ther deve­lo­ped by a lar­ge num­ber of indi­vi­du­als and orga­niz­a­ti­ons around the world and expan­ded for other app­li­ca­ti­ons. The pos­si­bi­li­ties of block­chain tech­no­lo­gy are not limi­ted to simp­le money trans­fers bet­ween pri­va­te indi­vi­du­als. On the con­tra­ry, it offers the pos­si­bi­li­ty for a wide ran­ge of eco­no­mic services.

The deve­lo­p­ment of infor­ma­ti­on tech­no­lo­gy has always had a major impact on the finan­cial sec­tor. In par­al­lel with the per­for­mance of com­pu­ters, its ran­ge of app­li­ca­ti­ons in finan­cial ser­vices has also deve­lo­ped and the effi­ci­en­cy and per­for­mance of finan­ce has gra­du­al­ly incre­a­sed. In addi­ti­on to the expo­nen­ti­al growth in com­pu­ting power, com­pu­ter tech­no­lo­gy has enab­led some other grass­roots inno­va­tions that have a major impact on pri­va­te life and the economy.

These basic inno­va­tions inclu­de the inven­ti­on of the Internet and the smart-phone, which make it pos­si­ble to access and share infor­ma­ti­on from any­whe­re. In addi­ti­on, the­re are offers such as the favor­able and scala­b­le avai­la­bi­li­ty of high-performance com­pu­ters and data stores, as well as major advan­ces in the field of arti­fi­cial intel­li­gence, which are accom­pa­nied by the per­for­mance enhan­ce­ment of the computers. 

These deve­lo­p­ments, which are usual­ly sum­ma­ri­zed as a digi­tal revo­lu­ti­on or digi­tiz­a­ti­on, have made fun­da­ment­al­ly new busi­ness models possible.

In the finan­cial sec­tor, the­se com­pa­nies are sum­ma­ri­zed under the term “fin-techs.” Since the late 1990s, the fin-techs have adap­ted or sup­por­ted more and more pro­ces­ses in the finan­cial sec­tor: While the focus in the begin­ning was more on pay­ment ser­vices (e.g. Paypal), later the credit sup­ply of indi­vi­du­als and small busi­nes­ses Financing of start-ups and com­pa­nies (crowd len­ding, crowd investing).

However, the­se types of fin-techs usual­ly still use the tra­di­tio­nal finan­cial mar­ket infra­st­ruc­tu­re (bank accounts, pay­ment infra­st­ruc­tu­re, etc.). The deve­lo­p­ment of cryp­to­cur­ren­cy, on the other hand, leads away from the tra­di­tio­nal tran­sac­tion sys­tem. Cryptocurrency (such as Bitcoin) is a digi­tal means of pay­ment crea­ted using the princi­ples of cryp­to­gra­phy. The con­cept and imple­men­ta­ti­on of Bitcoin in 2008 set in moti­on a deve­lo­p­ment who­se effects are hard­ly ful­ly estim­a­ble today.

Bitcoin’s inven­tor wan­ted to crea­te a money-making and pay­ment sys­tem that goes com­ple­te­ly without government cur­ren­ci­es, cen­tral banks and state-controlled banks. In doing so, he had several pro­blems to sol­ve. On the one hand, mone­ta­ry sta­bi­li­ty had to be ensu­red. He sol­ved this by set­ting the maxi­mum limit of the money sup­ply crea­ted and clear rules on how new money is being crea­ted. Another set of topics was the secu­re assign­ment of money to a per­son, the secu­re trans­fer of money as part of a pay­ment pro­cess and – asso­cia­ted with this – the avo­id­ance of the copy of the money (dou­ble spen­ding problem).

For this pur­po­se, he has crea­ted the so-called block­chain, a tran­sac­tion pro­to­col that is inten­ded to ensu­re equi­va­lent or bet­ter secu­ri­ty with the help of encryp­ti­on tech­no­lo­gy (cryp­to­gra­phy) without cen­tral midd­le­men (cen­tral bank or bank). It is essen­ti­al that the inte­gri­ty of the tran­sac­tion pro­to­col is gua­ran­te­ed pure­ly by tech­no­lo­gy, while in the ban­king sys­tem a midd­le­man (finan­cial inter­me­di­a­ry) must ensu­re this inte­gri­ty. The log­ging, encryp­ti­on and sto­rage of the tran­sac­tions only take place via the Internet.

In con­trast to today’s pay­ment sys­tem, in which each par­ti­ci­pant (e.g. a bank) keeps their own led­ger and has to match this with their inter­faces (e.g. cor­re­spon­dent banks) at a defi­ned time, the block­chain has only one led­ger, but it does Stored on all par­ti­ci­pa­ting com­pu­ters as a copy. It is the­re­fo­re also refer­red to as the tech­no­lo­gy of the decen­tra­li­zed led­ger tech­no­lo­gy or “dis­tri­bu­t­ed led­ger tech­no­lo­gy” or “DLT” for short.

Bitcoin has spread and evol­ved wide­ly sin­ce laun­ching in 2008. Due to the high incre­a­se in value in recent years, it is incre­a­singly used by spe­cia­list inves­tors as an invest­ment pro­per­ty (cryp­to asset). Due to the fact that Bitcoin does not know the hol­der of the money, Bitcoin is also repeated­ly cri­ti­ci­zed for being used for cri­mi­nal pur­po­ses (e.g. money laun­de­ring, ran­som demands).

The first genera­ti­on of block­chain deve­lo­ped for Bitcoin also has some pro­blems that make it dif­fi­cult for the broad eco­no­my to deploy, such as high ener­gy con­sump­ti­on or rela­tively low tran­sac­tion capa­ci­ty. Some of the­se pro­blems have alrea­dy been sol­ved intel­li­gent­ly by the newer genera­ti­ons of block­chain sys­tems. In view of the inno­va­ti­ve power used world­wi­de for the fur­ther deve­lo­p­ment of the block­chain, it can be assu­med that the future genera­ti­ons of the block­chain will sol­ve the out­stan­ding pro­blems in a time­ly manner.

Blockchain is about a new soft­ware tech­no­lo­gy based on mathe­ma­ti­cal models to effi­ci­ent­ly hand­le tran­sac­tions. Barter tran­sac­tions have always been the basis of the eco­no­my – the simp­lest form is the pri­va­te exchan­ge of a good for money through per­so­nal con­ta­ct and con­tract. Specialist tra­ding sys­tems have been set up in order to be able to exchan­ge goods over the distance bet­ween two par­ties that do not know each other direct­ly. Examples inclu­de pay­ment sys­tems and secu­ri­ties tra­ding systems.

In the­se clas­sic tra­ding sys­tems, the con­nec­tion bet­ween buy­er and sel­ler is estab­lis­hed via one or more inter­me­di­a­ries and the tran­sac­tion is hand­led legal­ly secu­re. For this, howe­ver, a high degree of stan­dar­di­z­a­ti­on and high deman­ds on the qua­li­ty of inter­me­di­a­ries are requi­red. For qua­li­ty assuran­ce and to crea­te trust, the­se are super­vi­sed by the sta­te. Each inter­me­di­a­ry keeps a led­ger for its­elf in order to secu­re­ly record the tran­sac­tions and to ensu­re the assign­ment to the customers.

The coor­di­na­ti­on of the­se various main books, inter­nal pro­ces­ses and government over­sight are bur­den­so­me, which is why the­se tra­ding sys­tems are worthwhile only for cer­tain assets.

The block­chain, on the other hand, offers a tran­sac­tio­n­al sys­tem that does not requi­re the qua­li­ty assuran­ce of inter­me­di­a­ries (midd­le­men) and without government over­sight. Quality is backed up through a com­bi­na­ti­on of encryp­ti­on tech­no­lo­gies, the pos­si­bi­li­ties of the Internet and software-based rules for pre­ven­ting abu­se. Technology and clear rules thus crea­te the necessa­ry trust in a block­chain to car­ry out secu­re transactions.

The most visi­ble genera­ti­ons of block­chain today are based on the princip­le of the decen­tra­li­zed main book (DLT), in which all par­ti­ci­pants in the tran­sac­tion sys­tem store a copy of the same main book in which all tran­sac­tions are depic­ted and Use qua­li­ty assuran­ce. However, this does not have to be cru­cial for all future genera­ti­ons. Common to all will be the absence of a cen­tral inter­me­di­a­ry for qua­li­ty assuran­ce of the main book. In a block­chain sys­tem, the­re­fo­re, the tra­di­tio­nal super­vi­so­ry approach (e.g. finan­cial mar­ket super­vi­si­on) is missing.

This main fea­ture pla­ces block­chain sys­tems as basic tech­no­lo­gy clo­se to the Internet pro­to­cols (e.g. TCP/IP), which form the basis of today’s Internet and also the basis for busi­ness models, but even by no inter­me­di­a­ry direct­ly Operated.

Because the clas­sic approach to a tra­ding sys­tem is bur­den­so­me and expen­si­ve, today only limi­ted assets are tra­ded on the­se sys­tems. Blockchain tech­no­lo­gy will signi­fi­cant­ly redu­ce access cos­ts. It can the­re­fo­re be assu­med that a much wider ran­ge of assets will be tra­ded on such infra­st­ruc­tu­re and can be used as a basis for eco­no­mic pro­ces­ses and rela­ted services.

The block­chain then takes over the func­tion of a pay­ment sys­tem tog­e­ther with the user inter­faces (e.g. wal­let app on a smart-phone). This infor­ma­ti­on is cal­led “tokens” on cer­tain sys­tems, in refe­rence to the English term for a pri­va­te embos­sing coin or “value mark.” There are block­chain sys­tems such as Bitcoin, in which this infor­ma­ti­on is not tech­ni­cal­ly desi­gned as a token, but the term sym­bo­li­zes the inde­pen­dence and trans­fe­ra­bi­li­ty of this information.

The tech­no­lo­gy of block­chain sys­tems ensu­res that this infor­ma­ti­on is clear. It is the­re­fo­re not tech­ni­cal­ly pos­si­ble to make copies. As a result, block­chain tech­no­lo­gy meets the ide­al requi­re­ments for the digi­tiz­a­ti­on of money, assets and intel­lec­tu­al property.

Scroll to Top
I Agree
This website is intended for investors resident in the countries listed below and is not directed to persons in other countries and persons whose nationality or residence prohibits access to such information under applicable law.

Authorized countries: Germany, Liechtenstein, Austria, Switzerland

This site uses cookies. By continuing to visit the site, you agree to the use of cookies.
I have read the terms of use and the disclaimer and accept them.
AIF Alternativ Invest Finance AG | c/o Blockchain Fund
Giessenstrasse 2 | 9491 Ruggell | Liechtenstein
Ich stimme zu
Diese Website ist ausschließlich für Anleger mit Wohnsitz in den nachfolgend angeführten Ländern bestimmt, und richtet sich nicht an Personen in anderen Ländern und an Personen, deren Nationalität oder Wohnsitz den Zugang zu solchen Informationen aufgrund der geltenden Gesetzgebung verbieten.

Zugelassene Länder: Deutschland, Liechtenstein, Österreich, Schweiz

Diese Website verwendet Cookies. Indem Sie die Website weiter besuchen, stimmen Sie der Verwendung von Cookies zu.
Mit der Zustimmung akzeptieren sie diese Nutzungsbedingungen.
AIF Alternativ Invest Finance AG | c/o Blockchain Fund
Giessenstrasse 2 | 9491 Ruggell | Liechtenstein