Blockchain technology is getting immense popularity these days and one of the main reasons for this is how it’s influencing the security & transparency of managing digital assets without any intermediaries' involvement. Unlike physical assets, traditional digital assets are intangible and thus, are difficult to track & confirm the proper ownership of them. Here comes the issue of establishing ownership rights. With the execution of blockchain technology, piracy issues & unauthorized use of digital assets can be terminated notably! In this blog, we are going to explore how blockchain technology is transforming traditional digital ownership with its revolutionary performances!
How blockchain technology is revolutionizing the traditional digital ownership practices
Asset authentication is a very crucial part to discuss here. The challenges of authentication were diversely present before the digital era and with the rapid increase of digitalization, it’s become more difficult to verify the authenticity of a piece of digital content. Making a copy of content & distributing it without having ownership, it’s very easy for someone! There was a huge gap in proving the authenticity of digital content. Here comes blockchain technology. In this modern implementation, each piece of content is stored on the blockchain with the record of authentic owners & has a unique digital signature that verifies its authenticity that can not be tampered with. This lowers the risk of data alteration & establishes authenticity at a strong base.
Before the blockchain era, traditional digital ownership systems totally relied on centralized servers, which have made them highly vulnerable to hackers & data infringements. There is a central controlling authority in the centralized system, which is responsible for the transactional & transferring activities. So, it’s comparatively easy to manipulate this system. But, in blockchain, there is no need for any intermediaries to manage the system. It’s a totally decentralized ecosystem where data is stored on a network of nodes without any involvement of a centralized unit or third party! It ensures better security as there is no possibility of hampering the whole system with a single point of failure.
Blockchain brings a supreme sense of transparency within the network. When talking about digital ownership, It must be ensured to get visibility access to all the parties involved in the transaction. From identifying current ownership to the complete asset history, everyone who has the authorization can see all! There is not any chance of some hidden data & thus, this high transparency brings trust & reliability to blockchain notably.
Blockchain technology-empowered Smart Contracts have highly influenced transforming digital ownership. It’s a self-executing contract that is directly written into lines of code with the terms of the agreement between buyer and seller. The code & the agreements contained therein exist on a blockchain network without any third-party involvement, and when certain conditions are met, the contract executes automatically. Smart Contracts are widely used to satisfy a variety of purposes like digital asset management, transferring ownership, supply chain management, etc.
Non-fungible tokens (NFTs)
NFTs are unique digital assets used to store different artworks, music, virtual real estate & collectibles on a blockchain network. It can not be replaced or copied and the artists & owners can easily measure its value over time. The authorized owner can sell it easily & gain huge profits. Former Twitter CEO Jack Dorsey sold the NFT of his very 1st Tweet for over $2.9 million! Verifying the authenticity & ownership of NFTs are very easy & it’s getting highly popular in trading digital artworks for millions of dollars at auction!
Security and privacy
Traditional digital ownership systems often use centralized databases for data storage which sometimes become easy to hit for any kind of fraudulent activities. But, with blockchain technology, the distributed ledgers & decentralized nodes ensure that the data should be highly protected in every aspect. Also, the use of private & public keys allows only the authorized owner of a particular digital asset to have access to it and it’s completely unchangeable which gives an additional layer of security & privacy to this.
With the high rise of blockchain technology, we can expect to see new business models emerge & revenue streams open. The new era of digital ownership & control has the power to bring a completely new dimension to asset management activities! We don’t deny that there are certain limitations like scalability issues, lesser user-friendly technical assistance, etc. But we hope that the proper issue addressing implementation, ongoing innovation & continuous funding on blockchain will sort out the challenges easily & make this technology more welcoming in the field of digital ownership establishment & management.