What are crypto (or digital) assets?

What are crypto (or digital) assets?

Crypto assets, also referred to as digital assets, encompass a broad category of digital instruments built on and defined by blockchain technology. These include crypto-currencies, crypto-commodities and crypto-tokens, which can simultaneously carry out one or more functions of more traditional currencies, contracts, equities, bonds or commodities. These assets are secured using cryptography to maintain the integrity of the network and data stored on the blockchain.

 

Crypto-currencies, such as Bitcoin, are digital currencies that use a decentralized computer network and immutable ledger, primarily focused on transacting value to exchange for goods and services.

 

Crypto-commodities are  tradable or fungible assets that may represent a commodity, utility, or a contract which are accounted for on a blockchain network through exclusive tokens..

 

Crypto-tokens describe a secondary asset type for a specific application on a blockchain and not the primary use case like Bitcoin, Ethereum or other native coins for the network. Tokens may be distributed, sold and circulated through the standard initial coin offering (ICO) process that involves a crowdfunding exercise to fund project development.

 

There are thousands of different digital assets, each with their specific utility and function. You can see the full list here.