NFTs Might Solve the Digital Assets Market’s Inheritance Issue

by | Apr 21, 2022 | Blog, NFT

One of the biggest conundrums the digital asset market faces is how to pass wealth down to generations.

A platform is offering several solutions for that problem via NFTs, but first, we need to delve more into digital assets, what they are, and their types.

What are Digital Assets

Digital assets, in addition to having certain characteristics of their own, share factors that are present in all intangible resources:

  • They have no physical form.
  • It is impossible to perceive them with the five senses simultaneously.
  • It has to be a product that can be used to make a profit.

On the other hand, a digital asset can have the following characteristics:

  • It is composed of data and is therefore digital in nature.
  • Only a maximum of two senses can be directly involved in its perception: hearing and sight.
  • Although it is an intangible asset, it is stored in physical form.

Types of Digital Assets

A digital asset can be classified depending on its usefulness and the way of achieving a return on it:

  • Assets with a fixed market price: assets that, when traded, have an established value.
  • Assets without a fixed market price: assets that do not have an established value and may or may not be traded occasionally.
  • Assets with technological lag: This type of asset must be continually updated to avoid becoming obsolete.
  • Assets without technological lag: These are assets that do not need to be updated because they are considered unique pieces that cannot be updated or modified, or, if they can be, they can be updated or altered only minimally.

Examples of Digital Assets

Some examples of digital assets may be:

  • Cryptocurrencies: a group of currencies that exist in digital form. They have an assigned price range and do not need to be constantly updated, with some exceptions.
  • Video games: This is a digital asset with a fixed market price and a slight technological lag since a video game is not updated forever, but a new one is eventually created.
  • Photographs of a family gathering: These can become an asset if they get some return. An example would be to sell a famous person’s images.
  • Albums: Music can be obtained or acquired physically or digitally. You listen to practically the same result both ways, only the form of storage and reproduction changes (the same happens with movies and series).
  • Digital artistic piece: In this case, we refer to a digital asset that, being a unique and unrepeatable piece, has a value that is not yet fixed and can fluctuate quite easily. In addition, it does not have the problem of technological lag since, being a unique and artistic asset, it does not have this need.

The NFT Solution to Pass Down Digital Assets

Serenity Shield is a decentralized application (or dapp) designed to protect digital assets and make sure there is continuity over generations. It is a platform that features StrongBox, an encryption function that leverages decentralized identification (DID).

The platform’s core objective is to introduce NFT keys and Smart Contract vaults that enable the automatization of inheritance processes. Crypto owners can use this platform to establish a transferable heritage to designated recipients. As an alternative, users can also secure their digital key and seed phrase on the blockchain using the StrongBox.

In simpler words, Serenity Shield divides a user’s metadata into three encrypted NFTs. The first one is stored by the owner, the second by the heir, and the third is saved in Serenity’s innovative contract vault. To unlock the digital assets, the heir needs two of the NFTs. 

This is an initial possible solution, and definitely an example of how NFTs can have other uses besides art pieces, stored in users’ wallets. Hopefully, many similar options we’ll emerge in the coming years so that digital assets can be fully adopted into the financial market.

 

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