What is a Digital Asset?

03.10. 2019
With the advent and development of cryptocurrency on the market, investors saw it as a "speculative bubble" that would "burst" over time. Today this statement was confirmed by a number of criteria that determine its vulnerability:

• The limited scope of activity.
• Frequent use of crypto for fraud.
• High level of wallet hacking and key loss.
• The ever-changing value of the crypt.
• Cryptocurrency is not supported by real assets.

Therefore, the modern economy needs an updated model of the mechanism with advanced capabilities.
Criteria for the new mechanism

Using a digital asset, in which there are already certain tools, it was possible to form a new model that allows anyone to understand what is a crypt and what is an asset. You can do this by examining the main criteria:

1. The protocol through which the digital asset operates and includes the terms and conditions of its use.
2. Security of property rights.
3. Digitization, creating a unique copy of the asset in a digital format with its consolidation in the Blockchain and the issue of ownership.
4. The actual assessment of the asset is carried out by specialists according to the method used by the country where the asset was created or registered.
5. The existence of a mechanism restoring access to a digital asset and transferring the right of heritage.
6. Extended scope of use.
7. The guarantee of safety and accounting for the existence of an asset in its digital copy.

These criteria emphasize the unique characteristics of a digital asset and its difference from crypto, revealing the limitless possibilities of its application in the digital economy.
Components of a Digital Asset

According to the essential and semantic features of a digital asset can be represented in the form of four components:

  • Economic - the asset is presented as a unique identifier in the financial and economic spheres.
  • Legal - the asset is represented in the legal field and acts as a derivative of the law. It is not a value but has a derivative on it.
  • Informational - is a part of an information resource in the IT field. And it acts as an information resource in the registry. An asset provides information on criteria and categories, fixes it on a medium, saves, exchanges and transfers data.
  • Valuable - is presented in the form of intangible and material values. The asset guarantees the right to claim a certain value inherent in it. In this form, the asset acts like a digital display of its value.
A digital asset can also act in the form of cryptocurrency. For example, tokens are purchased for cryptocurrency, the cost depends on the crypto, but they are stored on the blockchain. However, the symbol itself is not a digital asset, but its liquidity is directly related to the company to which they belong.
Asset-engine economy

The creators of tokens and cryptocurrencies, trying to circumvent the current situation and minimize the negative trend, often called the crypto and token a digital asset. However, replacing the name of the crypt will not receive the tools that are endowed with the digital asset. Therefore, it is important to understand that the token, crypto and digital asset are different components.

The international economy needs a digital asset to move from existing fields of activity to a high-quality technological level, with relevant and determined trends.

Today, cryptocurrency is perceived as the past, many investors say that soon it will not be, and a digital asset and platforms that can ensure its functioning will take its place. This will keep the digital economy moving forward.