In the present-day digitized world, data, systems, and applications are the most crucial assets of the organization. The significance and sensitivity levels of these digital assets differ widely across sectors. For example, in hospitals, the most sensitive asset is known as the patient information on the hospital systems, whereas the most crucial assets for financial organizations are their digital transactions.
Attacks on any of these digital assets can lead to serious damages to the business. Therefore, businesses must have an effective, clearly outlined Digital Asset Management (DAM) strategy to examine and protect their digital assets.
Since companies continue to transform digitally, the need for an effective DAM strategy is extremely important. Businesses must decide on a cost-effective way to flawlessly store, organize, find, retrieve, and distribute assets while ensuring the topmost level of security. A good and effective Digital Asset Management strategy ensures the central accessibility, quick retrieval, and security of the organization’s ever-growing assets.
Use of Blockchain for digital asset management
Blockchain technology can guard sensitive data and reduce the risks of such events happening. Not just this, it offers privacy and personal integrity too. You do not need to send the data into the validation networks; just send a hash of data and its pertinent metadata. If any changes are made to the photo, it will form up a different hash (a number). The changed hash depicts that the data has been modified.
Blockchain technology is a distinguished solution for DAM. It is a decentralized and distributed online public ledger system that stores values or even anything of value. Blockchain offers myriad possibilities through secure file transfer protocol to keep data secure with your validation networks. It validates that the data is right. And it is not convenient to modify data stored on Blockchain because the data is saved with a hash. Moreover, it is distributed to a huge number of validators.
Double-Spending & Immutability
A blockchain network promises that a digital asset cannot get copied. Thus, you will know with certainty who the owner is of an asset at any given point in time. It happens because alterations to the asset are immutably recorded on the shared ledger of the Blockchain. Once an alteration to an asset gets recorded into a block over which the network of blockchain nodes reaches consensus, it is almost impossible for an unauthorized person to alter it.
Since a blockchain network does this in a distributed manner, it simply means that each node keeps a copy of a ledger; any contradictory transactions would not be permitted on the ledger. An example of a conflicting transaction can be an owner of a bitcoin spending a bitcoin two times.
The bitcoin ledger is not going to fall for such a trick because it would know that after a first spend, the transaction is not going to be valid anymore since the sender does not possess the bitcoin any longer.
Non-Repudiation
Once a person sends a bitcoin from one account to another, it is a transaction. For a blockchain network to admit a transaction, it must be signed by the right private key. In the case of a bitcoin transaction, it will be the private key of the owner of the bitcoin, gesturing his intention to transfer it to the network.
Based on the signature with the private key, the network knows that it is the real owner of the bitcoin instructing a transfer of it. The concept is known as non-repudiation. It means having proof that a transaction was authored and assigned by the sender.
Other than currencies like bitcoin, also you can take documents as digital assets. Think, for instance about invoices, and simply sending them over through a blockchain network. There can be a QR code that will have a hashtag, and once a person scans the QR code, it would open up only if the hash value matches the hash value on the blockchain network on the best QR code generator.
Based on non-repudiation of origin, you would be certain that your supplier has sent you an invoice or trade finance agreement, in which different parties have a stake in the process that is looking at a single immutable source of truth. Any updates to the status of the agreement are going to be recorded for all parties to go through. With the approximately endless possibilities, you can even think about intellectual property rights getting digitally transferable.
The Bottom Line
In short, blockchain technology protects the transfer of overall ownership of digital assets. It keeps all the assets safe from illegal use by checking the integrity and verifying the people using it. With Blockchain service providers like ProofEasy, you can develop a secure, reliable, and private Digital Asset Management Strategy.