The unification of Germany was achieved through a policy of "Blood and Iron". How did Bismarck go about unifying the German states?

When Bismarck was appointed Prussian chancellor in 1862 by King Wilhelm IV, The democratic attempt of unifying Germany had failed and there was widespread sentiment among the Germans in favour of unification. There were a number of obstacles in Prussia's way of unifying Germany. Among them were foreign powers' interests in Germany, In other words, In order for Bismarck to unify Germany he had to eliminate all the other powers that posed a threat to German …

…was signed on 10 May 1871 and the terms imposed on France were very harsh. France lost allot of land and the German unification could now be completed. The South German states joined Bismarck's Confederation and The North German Confederation was now called the German Empire and Bismarck's goal of unifying Germany under Prussian rule was achieved. This upset in the balance of power would eventually lead to the largest war that the world has ever seen.