Transforming Blockchain for a Climate Neutral World

Where a bank or provider used to serve as an inter­me­di­ary, there is now a more decen­tralised method for trans­ac­tions: The blockchain. Behind it is a dig­i­tal process that allows you to store and for­ward mon­ey, infor­ma­tion or oth­er things that can be record­ed in data. Sen­si­tive data is han­dled with a high lev­el of secu­ri­ty. Find out how a blockchain works and how Ecrop uses it in an envi­ron­men­tal­ly friend­ly way here.

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How does a Blockchain work?

Think of blockchain as a kind of mod­ern account­ing. The data to be record­ed is stored in dig­i­tal blocks that are linked togeth­er to form a chain. Data stored in a block gen­er­ates a so-called ​“hash” for the block. This is a dig­i­tal fin­ger­print con­sist­ing of a com­bi­na­tion of let­ters and num­bers. Like a fin­ger­print, each hash is unique. You can recog­nise from it which block it is and which data is record­ed in it. If a new block with new data is cre­at­ed, it receives the hash of its pre­de­ces­sor in addi­tion to its own hash. The two are now linked and a chain is cre­at­ed.

How is the data in the blockchain secured?

If some­one were to try to manip­u­late the data in a block, the hash of the block would change along with the data. The sub­se­quent blocks would then be invalid because they do not have the new hash. To pre­vent a fast com­put­er from sim­ply recal­cu­lat­ing the invalid hash, there is the ​“proof-of-work” mech­a­nism. The mech­a­nism slows down the pro­duc­tion of new blocks and makes recal­cu­lat­ing all the blocks of the cor­re­spond­ing chain seg­ment too cost­ly. Anoth­er pre­cau­tion­ary mea­sure is the dis­tri­b­u­tion of back­up copies to all par­tic­i­pants rep­re­sent­ed in the net­work. So every­one keeps a decen­tralised record at the same time. Every­one has insight into the blocks of a chain in which they par­tic­i­pate and can con­firm their valid­i­ty and add new blocks. Thus, a demo­c­ra­t­ic con­sen­sus always pre­vails in the blockchain. There is no need for a third par­ty to ver­i­fy the data. The trans­mis­sion of infor­ma­tion is faster and cheap­er.

What is a blockchain used for?

The secure and decen­tralised infra­struc­ture of a blockchain offers numer­ous pos­si­ble appli­ca­tions. The most wide­ly used is the trans­ac­tion of mon­ey in the form of cryp­tocur­ren­cy. You’ve prob­a­bly heard of Bit­coins and Co. If you want to send mon­ey to some­one in this way, the data of the trans­ac­tion — sender, recip­i­ent, amount — is stored on a block and autho­rised via the meth­ods men­tioned. The pro­duc­tion of cryp­tocur­ren­cies or any vari­ant of a cryp­to­val­ue or cryp­toas­set also takes place on the blockchain. Some­times cryp­to assets serve a pur­pose oth­er than just being a means of pay­ment. For exam­ple, they can rep­re­sent your prof­it shares or vot­ing rights. In this case, they are called tokens instead of coins. Blockchains set up specif­i­cal­ly for this pur­pose are respon­si­ble for map­ping and legit­imis­ing your tokens. But blockchain tech­nol­o­gy could also be used to sort patient files, notarise doc­u­ments or organ­ise the count­ing of votes. Any appli­ca­tion is con­ceiv­able that requires data records to be stored trans­par­ent­ly and secure­ly. One catch is that this costs elec­tric­i­ty. Dig­i­tal data­bas­es like a blockchain have to be host­ed by servers and man­aged by com­put­ing sys­tems. The com­put­ers, in turn, prob­a­bly draw their ener­gy from sources that burn coal or gas. This leaves open the ques­tion: How do we make the process of a blockchain cli­mate-friend­ly?

Ecrop's Eco-Friendly Approach to Blockchain Technology

At Ecrop, we leverage cutting-edge blockchain technology to revolutionize capital raising for startups, offering frictionless access to electronic stocks. But our innovation doesn't stop there - we're committed to making sure our use of this powerful technology is environmentally friendly. We've optimized our algorithms to ensure our blockchain operations are energy-efficient, reducing the typical high energy consumption associated with blockchain. Additionally, our shift to digital ownership of shares, enabled by the Future Financing Act (ZuFinG), eliminates the need for paper-based certificates, significantly reducing paper waste. Our integrated platform further streamlines processes, enhancing efficiency and reducing the environmental impact associated with traditional manual operations. By coupling financial innovation with eco-friendly practices, we're not just unlocking the future of finance, but also playing our part in safeguarding our planet. Join us on this journey and explore the benefits of crypto securities at www.kryptoaktie.com.

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