Using Blockchain: Digital Assets

Hi there!

Over the last few emails, we’ve been talking about blockchain and
how to use it in your small to medium business.

In our last email we talked about smart contracts and how they
worked.

Today, we’ll discuss storing digital assets.

Storing your digital information has become far easier since the
invention of cloud storage software, but is your data really safe
in the cloud?

Many business owners are starting to worry about the security. They’re
turning to blockchain to solve that problem for them.

Blockchain is a tamper-proof technology, so storing your vital
business information in trusted digital ledgers will be a handy
alternative to traditional cloud storage.

While the vision of blockchain-driven digital asset management
is a promising one, it’s not yet a reality.

Here are a few important things to know about digital asset
management and blockchain:

• Blockchain is decentralized, which means the information isn’t
stored in a single central location, but copied to every computer (node)
in the system.

This makes it difficult to destroy or tamper with the information.

For digital asset management applications, this means blockchain is
ideal for information that needs to be referenced by multiple parties,
like an asset’s metadata — but they’re not ideal for storing large
volumes of data.

• Blockchain might function similarly to version control.

In this process, previous iterations aren’t destroyed or overwritten,
and the same is true for blockchain.

New information means a new block is added to the chain, not that
the previous information and transactions are destroyed.

They remain within the ledger, making rollbacks to previous versions
fairly simple.

• Blockchain gives you a complete audit trail history.

If you use asset identifiers, blockchain could make it possible to
determine who made changes to an asset’s metadata and when.

• Blockchain is not synonymous with Bitcoin or other cryptocurrencies.

While digital currency was one of the first uses for blockchain tech,
it’s also useful for recording a variety of digital transactions
(not just financial activity).

As blockchain becomes more and more prominent in the digital asset
management space, keep the following tips in mind:

• Keep GDPR in mind.

That’s General Data Protection Regulation and it applies to how the
tech is used.

GDPR regulations stipulate that personal information cannot be stored
in an immutable form — and blockchain ledgers are immutable by nature.

To maintain compliance, be careful what data you store on the
blockchain.

Only use it for information that must be shared between parties or
systems.

• Smart contracts will enhance the usefulness of blockchain for data
asset management.

They’re not essential, but cutting out the middleman is surely an
attractive proposition for anyone who creates, distributes, and
purchases digital content.

• Blockchain can play an important role in rights management, as it
allows digital assets to be distributed — but not copied.

This adds a layer of protection against the misuse or unauthorized
usage of assets or information.

• Blockchain can be public or private.

This will be a key consideration when configuring blockchain for
data asset management or for selecting data asset management providers.

Private blockchains will be better suited for applications that need
greater security.

Public blockchains are already gaining ground as a way for creators
to publish and distribute their work (while getting paid for it).

In our next email, we’ll take a look at handling money via blockchain.

Until then,

🐷 WUPPLES®

P.S. Like 🐷 WUPPLES® tips & tricks? (share with friends...thanks!)