A blockchain is a ledger<\/em>, a decentralized electronic registry distributed across multiple computers, consisting of a linked list of blocks.<\/p>\n\n\n\n Blockchain is used to record transactions, and once added, these cannot be modified retroactively without altering subsequent blocks of information. Growing linearly, each new block connects to the previous one, forming a chain.<\/p>\n\n\n\n In other words, blockchain is a specific type of database, but it differs from a typical database in the way it stores information. Blockchains store data in blocks, which are then chained together. As more data is added, it is inserted into a new block. Once the block is filled, it is linked to the previous block, ensuring that data is stored in chronological order.<\/p>\n\n\n\n The result is a robust transaction system, a public ledger composed of blocks of information that is constantly growing, where data can only be added and read, but not deleted or altered.<\/p>\n\n\n\n The use of blockchain eliminates the possibility of copying or cloning digital assets. Blockchain ensures that each unit of value is transferred only once, thereby eliminating the risk of double spending.<\/p>\n\n\n\n Blockchains are also described as value exchange protocols<\/strong>. Blockchain-based exchanges of value can be completed faster, more securely, and at lower cost compared to traditional systems.<\/p>\n\n\n\n Thus, blockchain presents itself, according to various perspectives, as a trust-based, transparent, intermediary-free system, consisting of an endless chain of transactions, recorded one after another and always visible.<\/p>\n\n\n\n A blockchain database is autonomously managed, using a peer-to-peer network<\/strong> and a distributed timestamp server. These servers are maintained through mass collaboration driven by collective interests, with security and transparency ensured by the large number of participants.<\/p>\n\n\n\n Terminology: block = bloc; chain = lan\u021b; blockchain = chain of blocks (information blocks).<\/em><\/p>\n\n\n\n The concept of \u201cblockchain\u201d first appeared in 1991<\/strong>, designed as a solution to seal archived documents. In a paper written by Stuart Haber and W. Scott Stornetta<\/strong>, entitled \u201cHow to Time-Stamp a Digital Document\u201d<\/em>, the idea of digitally time-stamping documents was proposed to ensure that transactions were \u201csigned\u201d at a given moment. The following year, Haber and Stornetta implemented a Merkle Tree<\/strong> (also known as a hash tree), in which multiple transactions were stored in each block.<\/p>\n\n\n\n In 1996<\/strong>, Cambridge cryptographer Ross Anderson<\/strong> described in his paper \u201cThe Eternity Service\u201d<\/em> a decentralized storage system characterized by the impossibility of deleting updates once made. At that time, his paper was considered revolutionary, as it envisioned the development of more secure, peer-to-peer systems<\/strong>.<\/p>\n\n\n\n Two years later, in 1998<\/strong>, B. Schneier and J. Kelsey detailed another method of securing logs from untrusted machines using cryptography. They described how a computer could prevent attackers from modifying past logs while making current ones unreadable.<\/p>\n\n\n\n A major development occurred in 2002<\/strong>, when cryptographers David Mazi\u00e8res and Dennis Shasha<\/strong> proposed a decentralized trust-based file system. This proto-blockchain was based on the idea that the system\u2019s writers trusted each other, but not the system itself. Instead of digitally signing files with SHA256 encryption, they recorded them and linked them together in a chain, stored in a Merkle tree.<\/p>\n\n\n\n In 2005<\/strong>, lawyer and cryptography pioneer Nick Szabo<\/strong> created a simplified version of blockchain and introduced it alongside his proto-cryptocurrency \u201cdigital gold.\u201d<\/p>\n\n\n\n All of these developments led to 2008<\/strong>, when the pseudonymous Satoshi Nakamoto<\/strong>\u2014whether an individual or a group\u2014published the first open-source version of the Blockchain protocol on the Bitcointalk forum.<\/p>\n\n\n\n In his paper \u201cBitcoin: A Peer-to-Peer Electronic Cash System\u201d<\/em>, Nakamoto described the concept of Bitcoin and its underlying mechanisms. However, he never used the term blockchain<\/em>. Instead, he referred to \u201cblocks\u201d and \u201cchains\u201d separately to explain how multiple blocks, each containing transaction data, were connected. Over the years, the term blockchain<\/em> became the standard, though Nakamoto himself never named it that way.<\/p>\n\n\n\n Theories about Nakamoto\u2019s identity range from government conspiracies to a corporate conglomerate (Samsung\u2013Toshiba\u2013Nakamichi\u2013Motorola<\/strong>) and even to famous but deceased scientists.<\/p>\n\n\n\n The first practical application of blockchain was the cryptocurrency and payment system Bitcoin<\/strong>.<\/p>\n\n\n\n Due to the collective contributions made online to Bitcoin\u2019s blockchain code, it is estimated that less than 10% of the original code has survived\u2014most of which is inactive today\u2014making blockchain a true collective creation of the internet<\/strong>. A Bitcoin is divisible up to 8 decimal places, with the smallest unit (0.00000001 BTC) named a Satoshi<\/strong>, in honor of its creator.<\/p>\n\n\n\n Blocks contain sets of transactions that are indexed and encoded in a special data structure, compiled together.<\/p>\n\n\n\n Each block contains:<\/p>\n\n\n\n Verification of the chain\u2019s integrity can be performed repeatedly, all the way back to the first block, called the Genesis Block<\/strong>.<\/p>\n\n\n\n The security of blockchain comes from the combined use of hash functions<\/strong>, the proof-of-work mechanism<\/strong>, and decentralization<\/strong>.<\/p>\n\n\n\n Computers (nodes) maintaining a blockchain database may have different historical versions. Each version has a \u201cwork value,\u201d and in proof-of-work systems, the chain with the most cumulative work is considered valid.<\/p>\n\n\n\n Every node has a copy of the blockchain. Data integrity is ensured by massive replication and by requiring nodes to solve mathematical puzzles (proof-of-work) to validate transactions. Nodes that successfully validate transactions and record them on the blockchain are rewarded with tokens.<\/p>\n\n\n\n There is no \u201cofficial\u201d central copy and no user is inherently more trustworthy than another. Transactions are broadcast across the network using specialized software. Mining nodes validate transactions, add them to a block, and publish that block to the network once completed.<\/p>\n\n\n\n Another layer of security comes from the distributed architecture<\/strong> of blockchain. Instead of a central entity managing the database, blockchain uses a peer-to-peer network<\/strong>, where each participant holds a full copy of the ledger.<\/p>\n\n\n\n This eliminates the risks of centralized systems, where a single point of failure can disrupt the network. With blockchain, there is no \u201ccritical server\u201d that hackers can target to compromise the system.<\/p>\n\n\n\n Security also relies on public-key cryptography<\/strong>:<\/p>\n\n\n\n Stored data is generally considered incorruptible. While centralized databases can be altered or manipulated, decentralized blockchains offer transparency for all participants.<\/p>\n\n\n\n New blocks are verified and added to the blockchain by computers known as miners<\/strong>, who are rewarded with a small transaction fee for contributing computing power.<\/p>\n\n\n\n Every transaction must be validated by miners. Using specialized software, miners solve mathematical problems. The first to solve it writes the block to the chain, while others validate it. The block is then broadcast across the network, and each node adds it to its copy if valid. Invalid blocks are rejected.<\/p>\n\n\n\n Block time<\/strong> refers to the average time it takes to create and add a new block to the chain. This varies by blockchain:<\/p>\n\n\n\n Breaking a blockchain would require:<\/p>\n\n\n\n Blockchain technology can serve as the foundation for corporate operations, especially in industries where the provenance of raw materials, transparency, and reliability of supplier transactions<\/strong> or the traceability of individual components<\/strong> in the supply chain are essential.<\/p>\n\n\n\n For example, FedEx Corporation<\/strong>, the American shipping giant, has been testing blockchain technology for tracking high-value shipments.<\/p>\n\n\n\n Similarly, blockchain solutions are being developed for container shipping management<\/strong>. The logistics company Agility<\/strong>, in partnership with Maersk<\/strong> and IBM<\/strong>, has worked on a blockchain-based platform that allows the tracking and management of container shipments. Agility collects information on shipments and transfers it into a decentralized ledger developed by IBM and Maersk. The goal is to reduce costs and improve efficiency through full integration of shipping data into a secure, shared platform accessible to shippers, carriers, and other supply chain stakeholders. The expected result is greater efficiency and security in international trade<\/strong>.<\/p>\n\n\n\n Automation of complex human processes is a cornerstone of technological progress. While full-scale digitalization of law is not yet here, the standardization of contractual relationships<\/strong> is increasingly seen as necessary. This brings us to smart contracts<\/strong>.<\/p>\n\n\n\n The term \u201csmart contract\u201d<\/em> was coined by Nick Szabo<\/strong> around 1993. It refers to computer programs designed to secure, execute, and enforce contractual relationships. The idea is to shift trust from parties to software<\/strong>\u2014formalizing contractual obligations in code. If the software can be trusted to execute the contract, parties need not rely on each other\u2019s goodwill.<\/p>\n\n\n\n Smart contracts allow trustless transactions<\/strong> without third parties. Once executed, these transactions are traceable and irreversible.<\/p>\n\n\n\n They contain all terms and conditions and automatically enforce them. Using blockchain, contractual terms are encoded into a block, then distributed across the network. Execution is carried out automatically once conditions are met.<\/p>\n\n\n\n Because smart contracts are encrypted and replicated across nodes, they are resistant to tampering, deletion, or revision. By eliminating intermediaries and automating execution, they provide greater speed and lower costs<\/strong>.<\/p>\n\n\n\n Beyond finance, blockchain applications are expanding into multiple fields:<\/p>\n\n\n\n Depending on who controls the blockchain and who has access to it, we distinguish between public blockchains<\/strong> and private blockchains<\/strong>.<\/p>\n\n\n\n In a public blockchain<\/strong>, anyone can read, copy, and propose modifications to the source code. Users can even create their own blockchain via a simple copy-paste<\/em>. Proposed changes to the code are called improvement proposals<\/strong> (for example, Bitcoin Improvement Proposals \u2013 BIPs) and must be voted on by the network\u2019s nodes, requiring a minimum percentage of consensus.<\/p>\n\n\n\n When fundamental disagreements arise that fail to reach consensus, a blockchain can undergo a fork<\/strong>, resulting in two separate blockchains that share the same history until the split. From that point forward, they diverge, with different miners and different transactions.<\/p>\n\n\n\n In such cases, users (cryptocurrency holders) typically receive coins on both chains, equal to the balance they held at the moment of the fork.<\/p>\n\n\n\n All participants\u2014users, miners, node operators, and developers\u2014may remain anonymous.<\/p>\n\n\n\n Private blockchains are typically created by corporations or governments. Unlike public blockchains, they do not allow open access to source code, nor do they rely on decentralized validation by public nodes. Instead, validation is performed by selected participants<\/strong>, usually owned or controlled by the entity that created the blockchain.<\/p>\n\n\n\n As a result, private blockchains tend to rely on their own miners and network nodes, operating under closed governance.<\/p>\n\n\n\n The creator of a database may protect its content through a sui generis right<\/strong>, and its structure through copyright<\/strong>. In European law, these rights are recognized under Directive 96\/9\/EC of 11 March 1996 on the legal protection of databases<\/strong>. In Romanian law, they are implemented in Law no. 8\/1996 on copyright and related rights<\/strong>.<\/p>\n\n\n\n If a database qualifies as an intellectual creation, it may be protected by copyright, granting the author exclusive rights to reproduce, adapt, and distribute the database or any variation of it.<\/p>\n\n\n\n Copyright, however, protects only the structure<\/strong> of the database, not its content.<\/p>\n\n\n\n Article 3 of Directive 96\/9\/EC provides that databases which, by reason of the selection or arrangement of their contents, constitute the author\u2019s own intellectual creation are protected by copyright.<\/p>\n\n\n\n No other criteria shall be applied to determine eligibility for such protection.<\/p>\n\n\n\n However, according to Article 3(2), copyright protection does not extend to the contents<\/strong> of the database and does not prejudice any rights existing in such content.<\/p>\n\n\n\n The author<\/strong> is the natural person or group of natural persons who created the database, or, if national law allows, the legal entity considered to hold the right.<\/p>\n\n\n\n If a database is created jointly by multiple authors, exclusive rights are jointly held.<\/p>\n\n\n\n Authors benefit from exclusive rights to: Article 1(2) provides that \u201can intellectual creation is recognized and protected by copyright from the moment of its creation, regardless of public disclosure, even in unfinished form.\u201d<\/em><\/p>\n\n\n\n Article 8 explicitly includes databases<\/strong> as copyrightable works, if their arrangement or selection constitutes an intellectual creation.<\/p>\n\n\n\n Authors may be natural persons or, in certain legal cases, legal entities. Works created jointly belong to co-authors, unless agreed otherwise.<\/p>\n\n\n\n The content<\/strong> of a database may be protected through a sui generis right, independent of copyright.<\/p>\n\n\n\n This right protects the substantial investment (financial, material, or human) made in obtaining, verifying, or presenting the content.<\/p>\n\n\n\n Article 7 grants database producers the right to prohibit extraction<\/strong> or re-utilization<\/strong> of the whole or substantial parts of the database.<\/p>\n\n\n\n The right lasts for 15 years<\/strong> from the date of completion or first public availability. Substantial modifications or new investments restart protection for another 15 years.<\/p>\n\n\n\n Only EU nationals and companies with real and continuous links to the EU economy can benefit.<\/p>\n\n\n\n Articles 140\u2013143 transpose these rules into national law.<\/p>\n\n\n\n Romanian law also allows legitimate users<\/strong> to extract or re-use insubstantial parts of a database, as long as it does not conflict with normal exploitation or prejudice the producer.<\/p>\n\n\n\n Article 140(4) provides exceptions allowing extraction or reuse without authorization for:<\/p>\n\n\n\n In Romania, the fiscal framework for cryptocurrency transactions was introduced by Law no. 30\/2019<\/strong>, which amended the Fiscal Code (Law no. 227\/2015<\/strong>).<\/p>\n\n\n\n According to Article 114(2)(m) of the Fiscal Code, income from the transfer of virtual currency<\/strong> is considered taxable income<\/strong>.<\/p>\n\n\n\n Individuals earning income from cryptocurrency transfers must submit the Single Declaration on Income Tax and Social Contributions<\/strong> (Declara\u021bia Unic\u0103<\/em>) to the tax authorities by May 25th of the following year<\/strong>.<\/p>\n\n\n\n The tax owed is calculated by the taxpayer themselves, applying a 10% income tax rate<\/strong> on the capital gain.<\/p>\n\n\n\n The taxable gain<\/strong> is the positive difference between the sale price<\/strong> and the purchase price<\/strong>, including direct transaction costs.<\/p>\n\n\n\n Transactions with a gain below 200 RON<\/strong> are exempt from taxation, provided the total annual gains do not exceed 600 RON<\/strong>.<\/p>\n\n\n\n Cryptocurrency income may also trigger liability for health insurance contributions (CASS)<\/strong>.<\/p>\n\n\n\n This contribution is owed only if the individual estimates an annual income (from cryptocurrency transactions alone or combined with other sources) at least equal to 12 gross minimum wages<\/strong>.<\/p>\n\n\n\n The fiscal provisions introduced by Law no. 30\/2019<\/strong> apply starting with income realized in 2019<\/strong>.<\/p>\n\n\n\n Thus, starting with that year, cryptocurrency transactions in Romania are legally recognized as taxable events, with income classified as \u201cother sources.\u201d<\/p>\n\n\n\n
\n\n\n\nII. History<\/h2>\n\n\n\n
III. Structure. Functioning<\/h2>\n\n\n\n
III.1. Blocks<\/h3>\n\n\n\n
\n
\n\n\n\nIII.2. Security<\/h3>\n\n\n\n
III.2.1. Proof-of-Work<\/h4>\n\n\n\n
\n\n\n\nIII.2.2. Decentralization \u2013 Peer-to-Peer Networks<\/h4>\n\n\n\n
\n
\n\n\n\nIII.3. Creation of a New Block<\/h3>\n\n\n\n
\n
\n
IV. Perspectives. Practical Applications<\/strong><\/h1>\n\n\n\n
\n\n\n\nAutomation and Smart Contracts<\/h3>\n\n\n\n
\n\n\n\nOther Use Cases for Blockchain<\/h3>\n\n\n\n
\n
\n\n\n\nNotable Blockchain Applications<\/h3>\n\n\n\n
\n
V. Classification<\/strong><\/h1>\n\n\n\n
Public Blockchains<\/h3>\n\n\n\n
\n\n\n\nPrivate Blockchains<\/h3>\n\n\n\n
\n\n\n\nVI. Legal Protection<\/strong><\/h1>\n\n\n\n
If a database meets the requirements for both copyright protection and sui generis rights, the creator may claim both.<\/p>\n\n\n\n
\n\n\n\n1. Copyright Protection<\/h3>\n\n\n\n
1.1. Directive 96\/9\/EC<\/h4>\n\n\n\n
a) Reproduce the database, in whole or in part, permanently or temporarily, by any means.
b) Translate, adapt, arrange, or otherwise transform it.
c) Distribute copies of the database to the public. The first sale within the EU by the right holder exhausts this right.
d) Communicate, display, or perform it publicly.
e) Authorize any of the above acts.<\/p>\n\n\n\n1.2. Romanian Copyright Law \u2013 Law no. 8\/1996<\/h4>\n\n\n\n
\n\n\n\n2. Sui Generis Rights<\/h3>\n\n\n\n
2.1. Directive 96\/9\/EC<\/h4>\n\n\n\n
\n
2.2. Romanian Law \u2013 Law no. 8\/1996<\/h4>\n\n\n\n
\n
VII. Taxes and Fiscal Treatment of Cryptocurrency Transactions<\/strong><\/h1>\n\n\n\n
\n\n\n\n1. Taxpayer Obligations<\/h3>\n\n\n\n
\n\n\n\n2. Health Insurance Contribution (CASS)<\/h3>\n\n\n\n
\n\n\n\n3. Entry into Force<\/h3>\n\n\n\n
\n\n\n\nVIII. Bibliography<\/strong><\/h1>\n\n\n\n
\n
\n
\n
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