The term Blockchain has been ubiquitous these days when talking about secure and verifiable ways to track a sequence of digital transactions in any business. Blockchain creates a digital ledger having various transactions with timestamps ready to be shared among a peer-to-peer network of computers. Blockchain is one of the technological marvels that has seen significant levels of adoption, increasing the interest in consumer-based applications and enterprises.
What is digital assets management?
Digital assets are basically any content or resources which are stored digitally. These can be videos, images, audio clips, document files, cryptocurrencies, or anything else stored in computers or data storage devices. In other words, digital assets are the depiction of resources that can be issued and transferred using distributed ledger or blockchain technology. Lately, Blockchain has become a popular concept with the increasing interest of people in Bitcoin and Ethereum. Though digital assets is a broad term that comprehends anything exchanged on the Blockchain, usually, it covers five categories under it. – Crypto Assets, Stablecoins, NFTs, CBDCs (Central bank digital currencies), and Security tokens.
Understanding the importance and sensitivity of these digital assets, their management becomes a significant challenge for any organization from any sector. Furthermore, as businesses can not afford damages to these assets, hiring a blockchain development company with experience in digital asset management becomes mandatory.
The digital asset management market size was valued at USD 3,497 million in 2021. It is estimated to reach USD 8,159 million by 2030, registering a CAGR of 18% during the forecast period (2022-2030). The adoption of the Digital Asset Management (DAM) market is growing in the United States mainly due to investments in innovation activities, cloud adoption, IoT devices growth, and others.- Reported by Straits research
Blockchain and the future of Digital Asset Management
The importance of digital assets has mounted drastically in the last few years, giving organizations a reason to focus on digital asset management. Digital asset management techniques can be set up and managed using the Blockchain, a secure, decentralized, and distributed ledger system.
- Ownership management-The asset management strategy helps businesses record transactions when assets move from one network to another. Transaction by transaction, the assets carry property ownership, attributions, and many other details as they proceed. Blockchain has a protective role here which protects the asset’s ownership and restricts it from being misused by any users. “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” Don & Alex Tapscott, authors of Blockchain Revolution (2016).
- Data management- A Blockchain network is much more resilient than a database cluster due to its distributed nature. As all the distributed peer nodes are encrypted in Blockchain, it helps in combating data breaches giving the data complete protection. Moreover, blockchains have inherited transactional histories. There is no question about the integrity of the data because each transaction is encoded using the history of earlier transactions. Each transaction is authenticated cryptographically, guaranteeing complete transaction auditability.
Because of its capabilities, Blockchain should be an integral part of any organization’s Digital Asset Management strategy. Especially if you are dealing with high-security data, you should contact Blockchain development companies which can impact your digital asset management in the coming days. Although there are undoubtedly limited Blockchain service provider companies globally, selecting the right one will ensure you have a robust Digital Asset Management Strategy.