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An overview of digital property types and their blockchain implementation. |
Digital property encompasses blockchain-stored assets, primarily including fungible tokens (e.g., cryptocurrencies) and non-fungible tokens (NFTs) such as digital art or certificates.
Fungible tokens are interchangeable digital assets with identical units, similar to traditional currency. Each token holds equal value and functionality, allowing for seamless exchange. Cryptocurrencies are the most common example of fungible tokens.
NFTs represent ownership of unique digital items. Unlike fungible tokens, each NFT is distinct and irreplaceable. They can represent various digital assets, including artwork, music, videos, and certificates.
When digital property is created, as either a fungible or non-fungible token, it is typically represented as a unique digital token on the blockchain. Anyone and everyone can create digital property given the technical knowledge.
Once a token is created, it is added to the blockchain via a transaction and becomes part of the network of digital assets that can be exchanged or traded. Each transaction involving the token is recorded on the blockchain, which ensures its authenticity and security.
One of the key benefits of creating digital property on a blockchain is that it provides a transparent and decentralized way to transfer ownership of digital property. Because the blockchain is a distributed ledger that is accessible to everyone on the network, there is no need for a centralized entity or third party to facilitate transactions.
Digital property in the forms of fungible or non-fungible tokens are stored as data in transactions on the blockchain. When digital property is created it is typically represented as a unique token that is stored on the blockchain. The token contains information about the property, referred to as the metadata, such as the owner, value and other relevant details.
As digital property is stored as data within transactions on the blockchain the digital property is secured by the security properties of the blockchain. Because the blockchain is a distributed ledger that is replicated on multiple computers across the network, there is no central point of failure or vulnerability. This means that the data stored on the blockchain is highly resistant to tampering, hacking, or other forms of unauthorized access.
Blockchain-based digital property offers a secure, transparent, and decentralized way to create, own, and transfer digital assets. It provides immutable proof of ownership and facilitates direct peer-to-peer transactions.
| Type | Description | Notable Blockchains |
|---|---|---|
| Cryptocurrencies | Native cryptographic asset of a blockchain protocol, intended to serve as a general purpose store of value or medium of exchange. | Bitcoin (BTC) Monero (XMR) |
| Platform Token | Designed to support blockchain platforms on top of which dApps can be built. | Ethereum (ETH) Cardano (ADA) Polkadot (DOT) |
| Utility Token | Intended to provide digital access to a dApp, service or platform. These tokens often offer the holders perks such as voting rights or network access. | VeChain (VET) Filecoin (FIL) Basic Attention Token (BAT) |
Transaction Fee / Gas Token | Intended to cover the costs associated with transacting on the blockchain. | VeThor (VTHO) |
| Security Token | Mimics a real world security but is stored on the blockchain. | Energa (EGX) Blockchain Capital (BCap) |
| NFTs | These tokens are unique and distinguishable. | VeAces Mad V-Apes Bored Ape Yacht Club |
| Stablecoins | Tied or 'pegged' to an underlying asset and comes in many forms. Designed to maintain a degree of stability and counter high price volatility. | USD Coin (USDC) VeUSD (VEUSD) Tether (USDT) |