Foundations of Blockchain by Koshik Raj
Author:Koshik Raj
Language: eng
Format: epub
Tags: COM064000 - COMPUTERS / Electronic Commerce (see also headings underBUSINESS and ECONOMICS / E-Commerce), COM083000 - COMPUTERS / Security / Cryptography, COM005030 - COMPUTERS / Enterprise Applications / Business Intelligence Tools
Publisher: Packt Publishing
Published: 2019-01-29T08:10:50+00:00
Digital assets and identity
Digital assets are programmable assets that exist in digital format. These assets can have their own value (digital tokens) or could virtually represent existing physical assets (ownership of vehicle). Digital assets have been used since the beginning of the digital age, but until now they have always existed in an environment where management was centralized. The invention of blockchain has allowed digital assets to exist in a decentralized network, where no trusted intermediary is needed to register or trade an asset. Removing the intermediaries means users don't have to pay any additional charges while trading assets.
Digital identity is essential to digital assets when dealing with asset ownership. It represents the identity of any individual or organization in a digital format. Digital identity is based on the public key infrastructure (PKI) and provides accurate identity management for the user. Unlike traditional identity documents, which could easily be forged, digital identity requires the user to authenticate via a digital signature to prove their identity. This system often uses a secured key infrastructure, which cannot be compromised easily.
We discussed claiming digital assets in the earlier chapters; you'll remember we covered the creation of an identity for the user with which the user would be able to claim an asset using a secret key. A similar approach will be used here to create and manage the digital identity of the user in the platform that we will use to build the application in this chapter.
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