Existence over the internet
Living in routines involving social media, technology, internet and the likes, we inevitably put reality to digital elements.
Of course the privacy is essential and money transactions must be secure. It’s all over the news, because it’s absolutely important. It must be noted nonetheless, that the lifestyle with digital world goes beyond the absolute ‘must‘s. Especially when the lines between digital and real are blurred. The concept of existence over the internet is prominent. A person exists on a global level through social presence over the internet. With this progress in dynamics, certain realistic rituals come into play in the digital world.
The ecosystem of internet calls for ownership over the internet. To start with…videos, music, emails, social media accounts, comments, articles etc. Assets which exist entirely (and only) in digital form. There’s also the digital representation of physical assets where one-to-one ratio is maintained and trade of digital representation ensures the same of physical. Digital Assets.
A significant and obvious difference in real assets and digital assets is that it’s much easier to duplicate a digital asset. Any type of digital entity at its core turns in to binary sequence, which can be electronically duplicated without any significant bottleneck in resources. Mainly because copying a binary sequence consumes almost nothing compared to duplicating physical entities. Physical constraints simply don’t apply.
This easy abundance enhances internet whilst opening up certain cons.
The risk of duplication
When it comes to assets like fiat cash in the online bank account, there has to be a one-to-one relation between the actual amount and digital asset since it is simply a representation. Such dynamic calls for credible entity to securely attest to vouch for the integrity of system.
The risk of devalution
A consequence of easy duplication. Natively digital assets have a risk of losing its value due to abundance. The value of most physical assets comes with scarcity. There can only be so much land in a country. Gold, Oil, so called limited editions and beyond. Hard to keep things limited when it comes to digital.
Cybersecurity coupled with cryptography implement various tactics to prevent such possibility, through various means. Starting with implementing human intelligence in securing the assets, preventing hackers to take advantage, to innovating the business models where duplication of content doesn’t have much effect. Media streaming services, for example.
It all goes to say, digital scarcity is a priority for the world we’ve come to, which has been being implemented since a long time. Efficiently or otherwise.