Asset Types
Learn the key concepts of how assets are represented and owned.
Summary
Rich asset model supports the digital modelling of assets
Assets are not tied to an underlying network asset
Overview
The iov42 platform recognizes two core asset types:
Quantifiable assets - they involve a quantity that can be owned. Each instance of a quantifiable asset is the same and there is no way to distinguish between them. They are fungible. →Example(s): fiat currencies, tokens
Unique assets - not fungible and distinguishable from one another → Example(s): a car, a house
In the future, the platform will support a third asset type category: structural assets. Structural assets are assets that have a relationship that must be maintained, most commonly a singular collective asset with individual component assets.
→ Example(s): A block of flats; the block itself is an asset, while each individual flat is also an asset, and the relationship between the whole and its parts is fixed.
Owning assets
An identity on the iov42 platform can own any number of different assets.
Quantitative assets can be split into different accounts, similar to having multiple bank accounts of the same currency.
Adding trust to assets
A digital assets only starts to become useful and valuable if you can trust characteristics of that asset. That is the asset creator needs to be able to make attestations and provide guarantees about the asset. This is done use the claims & endorsement mechanism.
Claims and endorsements are possible for:
Asset types
Unique assets
An account holding quantitative assets
→ Example(s): Alice claims that her SavingEUR account is AML compliant
Claims and endorsements are not possible for quantitative assets, because a quantity of something is neither unique nor constant.
Benefits:
Endorsements from credible third parties bolster an asset’s trustworthiness
Trust in assets is an important element of transparent regulatory compliance
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