Appreciating The Value Of Digital Assets: Understanding The Potential Of DAM In 2016
During the course of the last eighteen months or so, I have discussed DAM with a number of people, including users, vendors, consultants and investors. While there is a general acknowledgement that demand remains firm and that the growth cycle which first commenced around 2003-2004 is still in-progress, there is also a consensus that it is starting to slow.
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Thanks for this article!
For my better understanding: Could you please elaborate on this paragraph:
“If the intrinsic value of the digital asset is backed by something of current commercial value (for example, distributed data mining of big data repositories) that does not need to be a digital currency, per sé, then you can create viable commodity digital assets that people will pay for as they do with physical commodities such as energy, metals and agricultural goods.”
What do you mean when speaking about “viable commodity digital assets”? Could you please give a specific example for that? Thank you very much!
Bitcoin mining is carried out solely because those engaged in it can earn money by selling the resulting tokens. If the value of bitcoin fell back to zero, no one would do it. It isn’t really ‘mining’ either, just a distributed method of solving lots of cryptography-related equations
There are a number of examples of other complex or processing-intensive tasks where the results have a real-world use (i.e. intrinsic value). For example, analysing the auditing data from a very large or popular website to identify trends, or large-scale processing of media using standardised rules. A less commercial point of reference would be the SETI@home project: http://setiathome.ssl.berkeley.edu/ which uses distributed processing to analyse radio signals.
If you can devise a suitable unit (e.g. a fixed number of operations or a specific outcome) and reference these with a token which has a value then you have a commodity digital asset, the price of which will fluctuate depending on the demand for whatever problem needs to be solved.
Thanks for your detailed comment! So your thoughts are targeting to clarification of ownership of digital assets. And you’re pointing towards a secondary market for trading with digital assets. We see this upcoming all around us, too.