By Aman Jain. Originally published at ValueWalk.
Introduction: What Is A Digital Asset?
Digital assets are a type of digital currency that can be used in online transactions. The best way to define a digital asset is that it is an asset that exists in the form of electronic data. These assets can include Cryptocurrency, Tokens, Smart contracts, NFTs, and more. In recent months, it seems as the buzz around digital assets is constantly growing, with vast amounts of interest in NFTs and other digitalized products. Another factor is the ongoing conversations around an adaption of Web 3.0 that should help further decentralize and democratize the internet.
What Are The Advantages Of Digital Assets?
The first advantage of digital assets is that they are decentralized. This means that there is no centralized authority who has control over them. They also have a transparent ledger that ensures that all transactions are recorded and cannot be changed or tampered with after the fact.
Another advantage of digital assets is that they have low transaction fees, which makes them more affordable for both sellers and buyers. This is especially true when compared to traditional financial institutions such as banks which charge high transaction fees for international payments, wire transfers, etc.
We are currently seeing emerging startups like exberry, which provide a cloud-native SaaS platform for digital asset marketplaces. They are asset agnostic, meaning their platform can support any type of asset and build a marketplace around it. This helps free people from centralized marketplaces where they don’t have a say and are inforced with rules and regulations.
“By enabling the trading industry to progress and overcome legacy barriers with their matching & trading tech, our platform allows new players to join the business arena without any tech, operational and capital hurdles.” Says Co-founder and CEO Guy Melamed.
Issues With Traditional Industries And How Several Startups Are Bridging The Gap
Traditional industries are facing many challenges. Their centralized structures are not as efficient as they were before. There is a need for a new business model to survive in the future.
The challenges that traditional industries face can be divided into three categories:
- Economic challenges: Traditional industries have been struggling with economic challenges for decades now. They are no longer able to compete with the new emerging technologies.
- Environmental challenges: Traditional industries have created an environmental disaster by using fossil fuels and polluting the environment in the process. The world has realized this and is looking for alternatives like clean energy, which will make it hard for traditional industries to continue their practices, or they need to find a way to change them.
- Social Challenges: People are looking to free themselves from enforced regulations that they did not agree upon. We are seeing how hopeful younger generations are with respect to the adaption of Web 3.0 and the ability to effectively communicate and express themselves without giving up on their privacy.
We are seeing emerging Startups like Crymbo, which are bridging the gap between the traditional and digital by allowing financial institutions to provide their customers with easy “plug n play” access to digital assets.
We are also seeing something similar outside the finance sector, with startups like Storycards, who are providing publishers with the ability to easily create engagement products on their site, this is to combat the removal of third-party cookies, as well as help provide a better, more personalized experience for website visitors.
Advantages Of Decentralized Economies Compared To Centralized Economies
Decentralized economies are more efficient than centralized economies because they have a better cash flow and have a more robust system in place. Centralized economies are less efficient because the money supply is controlled by a central authority, which means that there is no cash flow. This also means that the central authority can control the economy, which makes it easier for them to implement policies that may not be in the best interest of their citizens.
Conclusion: How You Can Seize The Advantages Digital Assets Have In The Market
According to this CNBC Millionaire Survey, nearly half of millennial millionaires have at least 25% of their wealth in cryptocurrencies. This research shows that crypto is a divide among generations in new wealth creation, as younger investors have been able to earn vast fortunes and grow their investments from the surge in the price of bitcoin. Now, with the easier access to digital assets ranging from Crypto to NFTs, there is a vast opportunity for investors, startups, developers, and creators, to monetize their work, art, and products around a decentralized infrastructure that suits the fast-paced growth of emerging tech and marketplaces.
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