Digital Assets and DLT

Distributed ledger technology makes it possible to store and manage data in a secure, transparent and decentralised way. In contrast to centralised databases, where all data is stored in a single location, DLT allows data and transactions to be distributed across many different nodes in the network. These can be public blockchains (e.g. Ethereum) or authorisation-based (private) networks (e.g. Hyperledger platforms). These structures create trust by cryptographically linking the data blocks. Traditional market players often approach the topic cautiously, but further development continues unabated and harbours enormous opportunities for companies to automate complex processes or through new forms of value creation.

The blockchain makes it possible to store data and transactions in blocks without the need for a centralised authority. Thanks to decentralised consensus mechanisms, blockchain offers a high level of security and protection against forgery. This offers companies a wide range of opportunities to develop new business models and optimise existing processes, for example through smart contracts. These enable self-executing contracts that automatically check and execute conditions, thereby increasing efficiency and trust.

Digital assets are digital representations of real or intangible values that are managed on a DLT platform. These include, for example, real estate, art, raw materials, but also music and usage rights or shares in companies. Tokenisation converts these assets into tradable units. The advantages of the technology are obvious: the assets can be transferred directly between parties without a central intermediary. This reduces transaction costs while increasing liquidity and speed. In addition, tokenisation opens up asset classes that were previously difficult to access for retail investors, for example through fractional ownership of real estate or investments in alternative investments.

Tokenised assets are digital representations of real assets such as real estate, works of art, goods or even intellectual property rights. These assets are converted into tokens that can be stored, transferred and traded on a blockchain network. Tokenisation enables fractional ownership, increased liquidity and access to a wider range of investors. Ownership and transaction records are typically stored on the blockchain, providing transparency and security.

Crypto-assets, also known as cryptocurrencies, are digital or virtual currencies that use cryptographic techniques to secure transactions and control the creation of new entities. Bitcoin is the first and most well-known example of a cryptocurrency. Other popular cryptocurrencies include Ethereum, Litecoin and Ripple. Crypto assets can be used for a variety of purposes, such as online transactions, investments and store of value, and they often offer decentralisation, security and privacy features.