Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 19

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 19
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 choose the version of the software they want to run.

Blockchain technology has many built-in security
features that make it difficult for hackers and other malicious actors to corrupt the protocol or blockchain. However, as with any computer
network, the Bitcoin network may be subject to certain attacks. Some forms of attack include unauthorized access to wallets that hold
bitcoin and direct attacks, like “51% attacks” or “denial-of-service attacks” on the Bitcoin network.

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Bitcoin is controllable only by the possessor of
both the unique public key and private key(s) relating to the local or online digital wallet in which the bitcoin is held. Private keys
used to access bitcoin balances are not widely distributed and are typically held on hardware (which can be physically controlled by the
holder or by a third party such as a custodian) or via software programs on third-party servers. One form of obtaining unauthorized access
to a wallet occurs following a phishing attack where the attacker deceives the victim and manipulates them into sharing their private
keys for their digital wallet or other sensitive information. Other similar attacks may also result in the loss of private keys and the
inability to access, and effective loss of, the corresponding bitcoin. See “Risk Factors – Risks Related to Our Bitcoin Strategy
and Holdings – We face risks relating to the custody of our bitcoin, including the loss or destruction of private keys required
to access our bitcoin and cyberattacks or other data loss relating to our bitcoin.”

A “51% attack” may occur when a group
of miners attain more than 50% of the Bitcoin network’s mining power, thereby enabling them to control the Bitcoin network and protocol
and manipulate the blockchain. A “denial-of-service attack” occurs when legitimate users are unable to access information
systems, devices, or other network resources due to the actions of a malicious actor flooding the network with traffic until the network
is unable to respond or crashes. The Bitcoin network has been, and can be in the future, subject to denial-of-service attacks, which can
result in temporary delays in block creation and in the transfer of bitcoin. See “Risk Factors – Risks Related to Our Bitcoin
Strategy and Holdings – Bitcoin and other digital assets are novel assets, and are subject to significant legal, commercial, regulatory
and technical uncertainty.”

The primary Bitcoin industry participants are miners,
investors and traders, digital asset exchanges and service providers, including custodians, brokers, payment processors, wallet providers