After the failure of the German Confederation, which was a loose association of German states, in the face of the growing power of Prussia, the German states remained separate entities. They continued to have their own governments, laws, and even currencies. However, they were often influenced by Prussia, which emerged as the dominant German state. The smaller states sought alliances with Prussia for protection and security. This situation continued until the late 19th century when Prussia, led by Otto von Bismarck, successfully unified the German states through a series of wars and negotiations. This led to the formation of the German Empire in 1871, with Prussia as its leading state.
