What is Crypto Asset ? There are thousands of different types of crypto assets out there or as you might know them, cryptocurrencies. You’ve probably heard of a few Bitcoin, Ripple, Litecoin, and Ethereum have all been mentioned in the news recently, but what exactly is it? Well, let’s start by breaking down the word “cryptocurrency”. The first part of the word “crypto” means “hidden” or “secret” reflecting the security technology used to record who owns what and for making payments between users. The second part of the word “currency” tells us the reason cryptocurrencies were designed in the first place: a type of electronic cash.
But cryptocurrencies aren’t like the cash we carry. They exist electronically and use a peer-to-peer system. There is no central bank or government to manage the system or step in if something goes wrong.
Some people find this appealing because they think they have more control over their funds but in reality, there are significant risks. With no banks or central authority protecting you, if your funds are stolen, no one is responsible for helping you get your money back.
Put simply, a cryptocurrency is just one type of crypto-asset. A crypto-asset is an umbrella term; the special sauce that powers most applications of blockchain technology. More specifically, a crypto-asset is a digital asset that utilizes cryptography, peer-to-peer networking, and a public ledger to regulate the creation of new units, verify transactions, and secure transactions without the intervention of any middleman.
Crypto-assets facilitate the decentralization of industries, removing the middlemen through the use of cryptography and peer to peer networking and in turn reducing costs. Whether you’re making payments, file-sharing, or using the internet of things (IoT), you usually need a crypto-asset to make it happen.
As of April 2018, there are 1591 crypto-assets. There are four types:
Platform tokens/Crypto commodities
What is Crypto Asset