DIGITAL ASSETS MANAGEMENT: Why It Is Important to Have One

Digital assets management
Image source: ZipRecruiter

The term “digital asset” is very inclusive and covers a wide range of things. Although the general idea of digital assets is clear, there are many various types of assets, and the ones that are investments typically have more intricate structures. In this article, we will be discussing in detail digital assets management system, its importance and the role of a digital asset manager.

What are Digital Assets?

In general, everything that is created and saved digitally, can be identified and found, and has or offers value is considered a digital asset. As technology continues to permeate both our personal and professional lives, digital assets have grown in popularity and worth. Long regarded as digital assets with ownership rights, data, photos, videos, written content, and more.

You can own, exchange, and utilize digital assets as a medium of exchange in transactions or as a means of storing intangible material, such as digitally created works of art, videos, or contract documents.

In the finance industry, digital assets are a new concept, but they are quickly becoming relevant to many people. The introduction and adoption of cryptocurrency and the blockchain led to a redefinition of what digital assets are, as, through tokenization on a blockchain, anything that is in a digital form became something that could generate value.

The term refers to all cryptography-based assets that are issued in digital form via the use of blockchain technology, independent of the technology employed.

Types of Digital Assets

The various types of digital assets include;

  •    Photos                       
  •    Documents
  •    Videos
  •    Books
  •   Audio/Music
  •   Animations
  •  Logos
  •  Metadata
  •  Content
  •  Social Media Accounts
  •  Gaming accounts
  •  Illustrations
  •  Manuscripts

Types of Digital Assets That Exist on the Blockchain

  1. Central Bank Digital Currencies: A type of digital asset that represents a country’s fiat currency and have the backing of the central bank of that country, though not all countries issue CBDCs.

Use Central Bank Digital Currencies for:

  • Making payments; including cross-border payments and transfers
  • It’s a security token.
  1. Crypto Assets: This is any digital store of value or medium of exchange (currency) that’s in the blockchain.

What to Use Crypto Assets for:

  •  Funding a project by creating a coin
  •  Investments
  •  Making Payments
  1.  Cryptocurrency: A digital currency, or cryptocurrency, is an alternative payment method for encryption. Stablecoins, for instance, are a type of cryptocurrency for price stability. Their prices are linked to fiat currencies, commodities, or other crypto assets.

You can use stable coins for:

  • Making payments, including Cross-border payments and transfers
  • For foreign exchanges
  1. Non Fungible Tokens (NFTs): A token that represents ownership of a one-of-a-kind digital item (a piece of art, music, etc.). An NFT certifies that the holder owns the underlying digital asset and can sell, trade, or redeem it.

What Can You Use NFTs for:

  • Proving your identity and granting access (to either a virtual or physical space)
  • Tokenizing your supply chain to track inventory movement and ownership
  • Ownership of virtual items (games, avatars, virtual land)
  1. Security Tokens: These are digital assets that are like stocks and bonds, The tokens satisfy the criteria for security or financial investments.

What Can You Use Security Tokens for:

  • Tokenized versions of stocks (equity) and bonds
  • Tokenized versions of real-world assets (real estate, property, etc.)

Digital Assets Manager

The administration of digital assets can easily become a daunting undertaking as your business expands. Therefore, you need to consider bringing on a digital asset manager to your team to help with your assets and lessen the strain.

Digital assets are files in binary format with access permissions. Assets for instance, include text files like blog posts, ebooks, and marketing copy in addition to media files like audio, video, and image files. The acquisition, cataloging, management, and protection of an organization’s digital assets fall under the purview of a digital assets manager. The digital assets manager frequently use a Digital Asset Management (DAM) system to carry out these activities.

Furthermore, the manager of digital assets frequently act as asset librarian and curator while managing the DAM system.

Role

Managers of digital assets are responsible for the following:

  • Management and oversight of digital asset access and usage, guaranteeing brand coherence, legality, and copyrights.
  • Efficient naming, storing, and upkeep of the connected files’ usage permissions.
  • promotion and efficient utilization of resources

In general, digital asset managers are active in tool development, governance, research, advice, and enforcement. The company’s assets are gathered in one location, organized, and made searchable and available for use by various teams and asset creators.

Skills

The manager of digital assets need to have a range of analytical, interpersonal and technical skills.

#1. Analytical

Managers of digital assets should be able to:

  • The order of tasks and resources.
  • Putting in place efficient and productive mechanisms.
  • Applying a standard method to the application of meaningful metadata tags to assets
  • Gathering and managing digital materials to make them usable and accessible.

#2. Personal

Personal requirements for digital asset managers include:

  • Work well as a teammate and a leader with clients and coworkers, some of whom are not tech-savvy.
  • The terms and restrictions for using and gaining access to the company’s digital assets should be clear.
  • Enforce adherence to the relevant rules with patience and compassion.

#3. Technical

Digital asset managers need to be proficient in the following in addition to being at ease working with metadata, taxonomies, digital rights, search facets, and web publishing procedures:

  • Knowledge of project management tools, enterprise resource planning (ERP), product information management (PIM), ticketing systems, and content management systems (CMS).
  • Working familiarity with resources on Windows, Linux, and macOS-based operating systems, as well as markup and programming languages like HTML and CSS.
  • Good familiarity with vendors, integrators, resellers, and marketing stacks.

Digital Assets Management System?

A digital asset management system is software that helps you store, organize, and manage your digital assets. It also helps you track your digital assets and make sure that they are up-to-date with the latest changes in your company’s marketing strategy.

Integration, organization, storage, collaboration, distribution, performance evaluation, creation, and distribution are the seven key areas where the management system improves a brand’s operational effectiveness with digital assets.

#1. Integration

Project management software, content management systems, and picture editing software are just a few examples of the additional tools and online platforms that a DAM system can work with.

Creation: By utilizing interfaces with native video editors, creative software like Adobe Creative Suite, and project management tools like Smartsheet, teams using DAM can scale projects and develop new assets without switching between platforms.

#2. Organization

More assets are being produced by brands than ever before. The central source of truth for tracking and organizing that digital content is DAM software.

#3. Collaboration

Any asset type or piece of media content, including PDF papers, design files, and videos, is par for the course for collaboration. Organizations may view and change files from any location, enabling teams to work with the appropriate individuals wherever they are.

Distribution: Directly share assets from your DAM with others using either public or private links. Assets can be published anywhere from a single cloud-based location with a DAM system.

#4. Storage

With a DAM, companies and agencies can store infinite files of any size in a single, secure location on the cloud. When storing larger assets like high-resolution photos, videos, and audio files, this is crucial.

The security of stored assets is improved by features like rights management, file backups, and specific user permissions. Users can define asset expiration dates even though storage is infinite to cut down on unneeded virtual clutter.

#5. Performance Evaluation:

Through a digital asset management solution, you can obtain an accurate statistics and insights on asset views, placements, and engagements. Also, you’ll be able to observe the trends in activity over time and utilize that knowledge to more precisely calculate the ROI of brand assets.

Benefits of Using Digital Assets Management System

  •  Quick and easy file access
  •  Cut operational costs and keep important assets safe and secure.
  •  Everyone is using the most up-to-date content
  • Share files securely directly from the DAM platform.
  •  Locate digital assets quickly with minimal to no experience
  •  Individualize asset management.
  • Continually collaborate on assets on a single platform.
  • Preventing the duplication of digital content and making sure that they are never left unused.
  • You may access and share files on any device, at any time, anywhere.
  • In a single location, create and collaborate on digital content.
  • Easily share business material on digital platforms, including social media and content management systems.
  • Keep your brand consistent.
  •  Set up deadlines for licensed resources.
  •  Identify potential uses for digital assets
  •  Investigate the utilization of assets, their location, and the people that are using them.

Who Needs Digital Assets Management System?

A DAM system is necessary for anyone trying to optimize current digital asset operations. All businesses, regardless of size, can profit from using digital asset management solutions, from start-ups to internationally renowned brands. A simple technique to assist departments in escaping their silos is through enterprise-wide deployment.

Designers utilize DAM to streamline their creative processes. It is time-saving to be able to quickly search for and find files. They can save time and resources by simply reusing assets rather than looking for or developing new graphics.

Marketers may improve brand development and brand consistency throughout all of their branded material. Utilizing dynamic templates, you may easily create marketing materials and send them to all of your marketing offices worldwide. They can adapt your content for their area’s language and repurpose it.

NON-FUNGIBLE TOKEN (NFT)

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with particular identifying numbers and metadata that set them apart from one another.

Some examples of NFTs

  •  Degree Certificates
  •  Music royalties via NFTs
  •  A unique digital artwork
  •  A unique sneaker in a limited-run fashion line
  • An in-game item
  • Digital identity

How NFTs work

In contrast to ERC-20 tokens like DAI or LINK, NFTs are fully unique and cannot be different from ERC-20 tokens. NFTs enable the assignment or claim of ownership of any particular piece of trackable digital data, using the Ethereum blockchain as a public ledger. As a representation of digital or non-digital assets, an NFT is created from digital items.

The one-of-a-kind ID and metadata that no other token can duplicate are used to manage NFT ownership. Smart contracts that determine ownership and control transferability are used to create NFTs. A smart contract that complies with a separate standard, such as ERC-721, is executed when someone produces or mints an NFT. 

The blockchain where the NFT is being administered receives this information. From a high level, the minting procedure involves the following steps; new block creation, information verification, and information entry onto the blockchain.

Some properties of NFTs

  • Each newly created coin has a special ID that is directly connected to a single Ethereum address.
  • They can’t be exchanged for other tokens at a 1:1 in a straight line. One Ethereum, for instance, is the same as another. With NFTs, this is not the case.
  • Each token has a unique owner, and it is simple to confirm this information.
  • They are available for purchase or sale on any Ethereum-based NFT market.

 What to Know About Creating and Owning an NFT

  •  It is simple to demonstrate ownership,
  • Demonstrating ownership of an NFT is analogous to demonstrating that you have ETH in your account.
  • Let’s imagine you buy an NFT, and your public address is used to transfer ownership of the special token to your wallet.
  • The token demonstrates that the digital file you have copied is the original.
  •  Your private key serves as ownership documentation for the original.
  • The certificate of authenticity for that particular digital object is the public key of the content producer.
  • The public key of the token’s authors is essentially a permanent part of its history. By proving that the token you own was made by a certain person, the creator’s public key might raise its market value (vs a counterfeit).
  • You can easily establish your authorship.
  •  You choose the level of scarcity.
  •  Each time it is sold, royalties can be received.
  • On any NFT market or peer-to-peer, you can sell it. You don’t have to use anyone as an intermediary..

CONCLUSION

The world of finance and investment is rapidly changing, and as a business or individual, it is advisable to diversify your investment portfolio and include digital assets. Understanding digital assets, and how to invest and yield results is an ever-developing skill one should acquire or hire someone who understands this on their team. In this way, there will be an impact on your business growth and investment portfolio.

Digital Assets FAQs

What are digital asset investments?

Digital asset investments are those assets that exist in a digital form, have financial value, and include a right to use. They include, stocks, bonds, cryptocurrency, etc.

Is an NFT a digital asset?

NFT is a digital asset that might be anything from music to films to in-game goods. They are regularly purchased and traded online with cryptocurrencies, and they are typically encoded using the same software as many other cryptos.

What is the value of 1 NFT?

NFT production generally costs anything between $0.05 and $150. NFT creation costs vary depending on several variables, including blockchain costs, gas fees, marketplace account fees, listing fees, etc.

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