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Digital Assets: Opportunities for Entrepreneurial Innovation

By: Dan Alvin

 

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The digital revolution has been an ongoing, and consistent aspect of technological innovation and development across the globe. It is a segment that has wide and varied applications and presents as one of the main entrepreneurial choices for the current time. As an entrepreneur, you need to know as much about the sector as possible, and this article will provide a start in this regard.

What is a digital asset?

Digital assets are electronic files or data that are owned and can then be transferred between individuals. The idea is to digitize and store assets or artwork that are important and usable in the metaverse. An NFT can also be a way of storing intangible items such as computerized artwork, digital artwork, and/or video. The blockchain software and infrastructure that is now available means that these assets are now more structured and a great deal more secure.

Different types of digital assets

Since the late 90s, the term digital asset has been used to describe images, video, audio, and  communication. Different types of digital assets include the following:

Smarter contracts: Smarter contracts have become the modern way of work. The use of electronic signatures that are digitized and securely saved using blockchain technology are the way forward. Renewal of energy and business services contracts can be automated and set up in a secure location after they have been electronically signed by all parties.

Crypto assets: Cryptocurrency is regarded as a digital asset in that it is a currency type that is strictly held, exists, and is used in the online space. There are over 17,000 cryptocurrencies and many with their own trading and crypto exchange platforms. It is all secured with cryptography, making it almost impossible to counterfeit, and it is stored in a globally distributed open network.

NFTs: Non-fungible tokens are the latest in a long line of new and innovative digital assets. They are non-fungible in that they cannot be copied or broken down, and are a unique digital token or piece of artwork.

How to get involved in digital assets as a business

Be informed and educated

The best way to get involved in anything new and innovative such as digital assets is to know as much as possible about the sector. A credible site such as OKX is an example business that provides a great start in this regard. Knowing what tokens are trending and the various prices for NFTs (as well as a basic background and understanding of how the sector works) is essential if you are going to be able to make the right choices.

Find a suitable e- or crypto wallet

You will need a crypto or e-wallet to store the access codes and so-called pass keys for the blockchain account that holds the destination address for your digital tokens or crypto. The wallet is best if in cold storage, which means that it is only online when in use and thus a safer way to store and retain your crypto, NFTs, and other digital assets.

Decide on your angle for engagement

Once informed and you have the appropriate technology and software to use the blockchain system for digital assets, you will need to decide on the type of your involvement:

Investment: There is an opportunity for entrepreneurs to enter the sector with their main intention to be the creation of profit and to generate wealth over the long term. The idea is to buy digital assets low and then to sell them high. You will need to decide on the specific digital asset and have a clear plan as to its expected increase in value over time. Similarly, with today’s internet technology revolution, Web3 investing is quickly becoming a hot spot for investment opportunities. Research what projects and platforms are available before taking this journey.

Creation and sales: Blockchain is open source and therefore anyone who has the tech, and the ability, can create an NFT, crypto, or another digital asset. The NFTs that are trending highest are those that are related to a piece of artwork, and you can thus mint your own as long as you have access to an NFT platform and then upload to the blockchain and list it for sale. As long as the metadata and codes are then kept in possession of the owner (in a crypto or NFT wallet) then ownership can be guaranteed, and the token cannot be replicated.

Use as a form of daily currency: If you do a lot of business on the internet, whether it be e-commerce or have a hybrid-type organization then you will need to have a means of payment and financial transaction. Cryptocurrencies have also become one of the main ways to grow your business internationally—allowing anyone from anywhere to be able to buy your products and services.

Use in the metaverse: The metaverse and Web3 applications and environments are being designed and created with the use of crypto, NFTs, and digital currencies. The main way to pay for, record, and store the assets and items of value that you need in the games that you play, the work that you do, and the businesses that you may run in the metaverse are now digital assets.

Set up digital asset management strategy: There can be so many different digital assets, that a critical part of making these into a viable business will require you to audit what you have and then set up a system for management, maintenance, and monitoring.

Conclusion

The digital asset sector is becoming one of the fastest-growing forms of business and innovation at the moment. The introduction of the metaverse and entirely new ways of working has provided the impetus for such digital asset developments and the resultant business opportunities for entrepreneurs and start-ups is phenomenal. It is, however, critical for all small and emerging businesses to have a clear plan as to how they intend to enter the digital asset sector and why they intend to do this. Information such as that you have just read, will go a long way to preparing you for any entry into the digital asset sector.

Published: December 9, 2022
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Dan Alvin

Dr. Dan Alvin is a psychologist specializing in issues of identity and behavior in the workplace. He writes frequently on performance management, workplace health, employee satisfaction and motivation, and workplace harassment.

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