Digital Asset

Digital Assets are any assets that are stored digitally. This could mean photos, videos, files containing messages, spreadsheets, etc. However, the definition has been broadened to become a synonym of cryptocurrencies as more financial institutions have become involved in the market, under ‘financial digital assets’. Non-Fungible Tokens or ‘NFT’s, running on the ERC-721 token standard, are a prime case of blockchain-based digital assets that are not necessarily ‘financial’ digital assets but do retain value.

The legislation and legal enforcement of the ownership of digital assets has been one of contention as some digital assets such as digitally-stored music has clear provenance but has been pirated across the internet. Many posit that the blockchain’s distributed ledger technology changes the question of enforcing digital asset ownership as with cryptographic tools, these assets can be secured.

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