What is Blockchain?

Blockchain is a new digital technology. Blockchain can be interpreted as an “account chain”.

The technology is based on three basic computer science concepts: 

(1) Asymmetric cryptography
(2) Cryptographic hashes und
(3) P2P networking.

In this system, all actions between users are saved. The data is chained together, including the time stamp, giving rise to the name “Blockchain”.

And because all users have access to the same data, it can only be changed by mutual agreement, preventing the possibility of information being manipulated.

There are already around 500 systems which display the following common characteristics:

  • Elimination of all intermediaries. Central institutions (stock exchanges, banks, clearing agencies) are replaced by a network of computers. The network examines the validity of business (stock exchange transactions, cash transfers) depicted in the account chains (block chains).
  • Anonymity and confidentiality are guaranteed within the network thanks to coding.
  • High degree of security, reliability and non-changeability of documents is achieved by chaining the accounts to each other and distributing them across all nodes in the network.