A digital asset, in the world of crypto and fintech, refers to the digital representation of something of value. Typically, this value is tokenized, and the resulting tokens can represent either full ownership or fractional ownership that is verified and recorded on a distributed ledger. A digital asset can include cryptocurrencies or crypto tokens, or can represent a real-world asset that is stored on the blockchain in the form of a token that represents its value, identified with its unique ID.
This can come in the form of a commodity, a file, record of a land registry, an accounting ledger, a 3D printing raw file, and much more. Asset values can be defined by monetary amount, kilograms, ounces or litres or a digital asset like the digital rights to a film, a non-fungible token (NFT), loyalty and reward points, or a file which can be quantified on the blockchain by the number of usage or views granted to the holder for example.
Digital assets can be used as either a medium of an exchange that can be used to acquire goods or services, or can simply refer to the physical representation of a real-world asset in its digital asset form with its unique identification code.
As blockchain and cryptocurrency assets continue to mature, the use cases for digital assets will grow, opening up the world to new opportunities for wealth creation.
Related Articles
Digital
Digital can be described as electronic technology which can generate, store as well as process data in two states, positive as well as non-positive. The positive is expressed or represented through the number 1 and the non-positive is expressed or ...
Crypto Invoicing
Crypto invoicing allows you to create different itemized bills and invoices for the products or services you offer. It enables you to bill clients in crypto via email, without the hassle of switching between wallets and apps. As cryptocurrencies ...
Digital Commodity
There is a huge range of things that might be termed a digital commodity. These include things like computing power and storage. Increasingly, however, the term digital commodity is primarily taken to mean digital currencies. In practical terms, ...
Central Bank Digital Currency
Central bank digital currencies (CBDC’s) are fiat currencies that exist in a digital form and are issued by central banks. CBDCs remain fully within the orbit of the traditional, intermediated financial system of fiat currencies, which are backed by ...
Asset-Backed Tokens
Asset-backed tokens, also known as tokenized securities, are digital representations of real-world assets. Gold, crude oil and other kinds of physical assets can be represented digitally by an asset backed token - a digital claim on that physical ...