May 17, 2022

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Explain Blockchain simply using the example of NFTs – the stock exchange

Blockchain explained simply

A “block chain” – the German translation for blockchain – is a matter of linked data blocks in which transactions can be digitally recorded and recorded in a decentralized manner. Encrypted and anonymous blocks of data protect sensitive data from unauthorized access, and hackers have almost no chance. The revolutionary thing about blockchain technology is that it makes transactions possible without a central authority that records and verifies transactions. The system generates trustworthiness and transaction security almost all by itself.

For example, with Bitcoin payments, banks or payment processors can be completely dispensed with. Payment is made directly between the respective computers. Not only can transactions be processed faster, but it can also be more cost-effective. Bitcoin and most other cryptocurrencies are based on blockchain technology. However, the range of applications is wider.

Invest in blockchain technology

As mentioned earlier, direct investment in cryptocurrency is associated with very high risks. You also need a digital wallet in which transactions and shares are stored. Additionally, it is not currently possible in Germany to invest in Bitcoin on the exchange via exchange-traded funds (ETFs).

On the other hand, an interesting alternative to direct investments and ETFs is to invest in companies that have implemented blockchain technology in their business model. This is the approach that a robo advisor takes with the new blockchain technology topic.

Read here if you want to know more about the blockchain and its possible applications.