We have come a long way. From the officious banks and their bureaucratic high handedness to an almost anonymous system, part of a decentralized mechanism, transferring tokens between peers at lightning speed and no extra cost. We have indeed come a long way.
So what are Digital Assets?
Types of digital assets include, but are not exclusive to photography, logos, illustrations, animations, audiovisual media, presentations, spreadsheets, word documents, electronic mails, websites, and a multitude of other digital formats and their respective metadata.
Due to its lack of form and shape, digital assets become a hard target to manipulate.
Is cryptocurrency a digital asset?
Cryptocurrencies are digital assets designed to facilitate peer-to-peer financial transactions and smart contracts on the internet in a decentralized manner. This was first accomplished by solving the “double-spend” problem and by using advanced cryptography and programming.
Cryptocurrencies record transactions on public ledgers known as “blockchains” and are the first form of digital money where an intermediary is not required to send funds from one person to another person.
Cryptocurrencies do not have a physical location; wallets do not hold cryptocurrencies. Wallets only hold the cryptographic keys needed to access one’s cryptocurrencies on the relevant blockchain.
Cryptocurrencies do not actually “move” anywhere when you send or receive them. They just change ownership on the respective blockchain, which is stored on nodes all over the world and secured using cryptography. Anyone with the right resources can set up and run a node.
Due to blockchains being public, cryptocurrencies are only pseudo-anonymous. A common goal for many cryptocurrencies is to improve privacy for users, though only some cryptocurrencies make this their main focus.
The rise of Bitcoin has spawned an entire universe of cryptocurrencies. What started as a simple peer to peer transaction has now transformed online trading. From a secured digital wallet to platforms that allow newer tokens to be created, the ubiquitous crypto is now a full-fledged workhorse.
Moreover, with Digital assets becoming a large part of the monetized inventory of most organizations, cryptocurrency being a purely digital asset itself, has finally found its place on the Sun.
However, one should not confuse between crypto-assets and cryptocurrencies because not all crypto assets are cryptocurrencies but all cryptocurrencies are definitely crypto assets.
The slow and steady march of technology has ensured that change is the only constant. Without it, redundancy will set in.