Digital Assets

How Digital Assets Are Permeating Everyday Life

It’s clear that the digital assets market has grown significantly in the past few years. By 2021, the three-fold surge in total capitalization of digital assets proved that Bitcoin was only the beginning when it comes to new capital markets.

At first glance, digital assets are merely digital representations of objects and their associated value. However, a closer look into the 21st century will show us that the digital age allows for these assets to be used almost anywhere — from decentralized protocols, utility tokens, and non-fungible tokens to DeFi protocols, and many more.

In the coming years, we can only expect a steady increase of diverse investable asset types. To keep you up to date on the market, here’s a look at how digital assets are already being used in our everyday lives.

NFTs in the healthcare industry

Unlike cryptocurrencies which are used as a form of money, NFTs equal a certificate of authenticity. When applied in healthcare, this means that NFTs help citizens track and control who accesses their personal health records. This can greatly benefit the current health record-keeping system, which tends to disenfranchise the individual.

Alphabet Inc.’s Google and national hospital chain HCA Healthcare Inc. have already struck a deal to develop healthcare algorithms using patient records. Data is spun off from patients in real-time, and patients are simultaneously able to track how their data is being used.

In this era of big data, health information is its own currency. And with the NFT blockchain ledger, individuals can even cash in the sale of their data. This practice can also be applied to other initiatives that intend to use patient-generated data.

Fan tokens in Sports industry

Fan tokens in sports industry

Another popular industry that has been permeated by digital assets is sports. Today, the fan experience can only be complete with the recent trend in fan tokens.

Fan tokens are a type of utility token. These are created on a blockchain and, when used, allow fans an access to a variety of membership perks like voting rights, rewards, or merchandise. The Spanish soccer club Atlético de Madrid became one of the first football teams to issue Socios fan tokens in January 2020. Several other teams have followed suit, including the Cleveland Cavaliers in basketball and the Punjab Kings in cricket.

More sports teams are recognizing the importance of strengthening fan engagement. We can expect more teams worldwide to steadily invest in fan tokens as more than 1.5M users from 167 countries are already on the platform.

Simplified Insurance

On a more general scale, insurance is a risk management for financial loss that is regularly used in every industry, from cars and pets to life. Represented by a policy, insurance is, at its core, a contract.

With digital assets, Ethereum smart contracts can only guarantee greater automation and fraud protection. And as we’ve noted in our previous article, they’re also much cheaper, and many services can become more competitive for customers.

Everyday usage

Everyday-usage

What if digital assets were capable of being used in regular everyday transactions? This notion might’ve been scoffed at in the past — one of Bitcoin’s greatest limitations is its volatility in value. However, stablecoins address these volatility issues while providing the same digital advantage during transactions.

Stablecoins are cryptocurrencies whose values are linked to another asset class, like a fiat currency or precious metals like gold or silver. The United States dollar, for example, is pegged to the digital stablecoin USDC, which is run by distribution company Coinbase. Stable coins allow for day-to-day commerce and making transfers between exchanges by being attached to a reserve asset. As with regular currency, the boundaries are limitless.

It’s crucial that the financial sector doesn’t underestimate the potential of digital assets. Instead, the market must embrace the challenges and opportunities of the coming digital transformations. What’s next? Check out our Reviews page for research-rich knowledge and experienced-based reviews to stay ahead of the competition.

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Islah Ejaz is a real tech fanatic who has been writing for tech since 2016. His insights in tech are remarkable, as he keeps a close eye on the latest tech innovations & inventions, news, updates, and releases. Binge-watching series and listening to podcasts is what keeps him firm. He is also a gaming enthusiast, and gaming gives him the ultimate pleasure.