Digital Infrastructure & Sovereignty
Digital Infrastructure & Sovereignty is one of the focus topics of Finance Loop. Emerging tech in finance depends on systems that store data, process transactions and connect applications. Digital sovereignty concerns who controls those systems, access to data and the ability to change providers. For blockchain-based services, smart contracts execute transaction rules and oracles supply outside information. Layer 2 networks process additional transactions, staking helps secure certain networks, and private keys determine who can control digital assets. The articles explain these technical dependencies so readers can assess how a financial service works and where control rests.
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How do smart contracts work?
A smart contract is a program on a blockchain that executes an agreement when set conditions are met. How it works on Ethereum and what the EU Data Act asks. -
What is a blockchain oracle?
A blockchain oracle delivers outside data such as prices or a fund's net asset value to a smart contract. How oracles work, their types and their risks. -
What is a layer 2 blockchain?
A layer 2 blockchain processes transactions off the main chain and settles them there. Rollups on Ethereum, the Lightning Network on Bitcoin, and EU law. -
What is staking?
Staking locks crypto-assets at a validator of a proof-of-stake blockchain. How staking works, which rewards and risks it has, what MiCA and FINMA say. -
What is a private key vs a seed phrase?
A private key signs transactions for one address; a seed phrase of 12 to 24 words creates all keys of a wallet. How BIP-39 and BIP-32 work, and custody rules. -
What is AI in finance?
AI in finance is the use of learning computer models by banks, insurers and asset managers. Use cases, risks, the EU AI Act and the supervisors in DACH. -
What is a crypto wallet?
A crypto wallet stores the private keys to crypto-assets and signs transactions. Custodial vs non-custodial, hot vs cold, and what MiCA asks of custodians. -
What is a hardware wallet?
A hardware wallet keeps private keys offline and signs crypto transactions inside the device. How signing and the secure element work, and what it cannot stop.