Digital property emerged with the launch of Bitcoin, the first virtual currency based on Bitcoin technology, in 2009. Until then, people who owned digital items did not have a verifiable individual right to the digital item. After 15 years, in 2024, the number of digital owners will reach 562 million globally. In Romania, their number is 333,758 people.
Digital property is the concept of having rights and control over digital assets, ranging from traditional digital files like ebooks and music to more complex items like NFTs and video game items. Digital items are protected by Blockchain technology, which is increasingly used in many fields, such as finance, business, retail, and iGaming.
iGaming platforms, such as Verde Casino Online, a portal that accepts Romanian players and offers attractive rewards, use Blockchain technology. The technology creates decentralized and immutable registers that allow verification of digital ownership, through unique tokens. Thanks to this technology, digital owners are protected at a higher level. Find out how, by reading the article!
How does digital ownership work?
Establishing ownership of a digital item is based on identifying the unique asset through tokens, encryption keys and hashes. Based on the information associated with the digital item, the link is established with the owner, who has proof of ownership. The use of Blockchain technology makes it difficult for any reproduction or falsification of the right. Securing digital ownership through Blockchain involves the following elements:
- Creating a decentralized and immutable ledger – single, centralized databases are replaced by distributed ledgers where ownership is recorded. The ledger is then secured through encryption and the creation of a protective zone that makes it almost impossible to manipulate or alter;
- Proof of ownership with NFTs – unique non-fungible tokens are registered on the blockchain, proving digital ownership of digital artwork, virtual real estate, or collectibles;
- Encryption key association – proof of ownership is also achieved by association with public encryption keys, which are shareable, or with private encryption keys, which are accessible only to the owner. The private key is used to authorize transactions, giving the owner control over the associated asset;
- Smart contracts – smart contracts are agreements written directly in the Blockchain, which automate the transfer of ownership when the contractual terms have been met, the execution of the contract being carried out precisely and correctly, without intermediaries and/or third parties being involved;
- Fully transparent transactions – transactions are verifiable, being recorded in public ledgers, which are accessible to all owners on the blockchain, who have transparent access to the history of ownership and transfers related to the items held.
The digital owner has the right to transfer, sell or use the property owned both as a whole and in parts, which is impossible for traditional goods. Moreover, the level of independence is very high because the title of ownership is registered in a public registry.
Why is using Blockchain technology useful for securing digital property rights?
Blockchain is recognized as a source of security, transparency, and immutability among cryptocurrency users. The decentralized system, which allows for verification of ownership, as well as high resistance to fraud, censorship, and manipulation, makes Blockchain technology ideal for protecting digital possessions. The list below contains the reasons why Blockchain is recommended for securing digital assets:
- Security – the use of advanced encryption mechanisms makes it difficult to manipulate and alter digital property records after the blockchain registration process has been completed;
- Permanent access – even when the platform creator or the platform disappears, the digital property right remains registered in the Blockchain network, which allows the owner to access and transact the asset they own at any time;
- Transparency – the blockchain registry in which the right is registered is public and easily verifiable by any interested person among the network participants;
- Eliminates third parties and intermediaries from the transaction process – the use of smart contracts and the decentralized ledger allows for the automation of the transaction process, which eliminates third parties from the sale and streamlines P2P transactions;
- Ownership Verification – Each digital item is assigned a unique digital certificate on the Blockchain network, proving its authenticity and ownership. The owner’s signature is stored in the transaction details, creating a verifiable and secure link between the item and the owner;
- Decentralization – ownership is not controlled by just one entity, but is distributed across a network of computers, which prevents fraud, censorship, or removal of ownership by a third party;
- Immutability – information about ownership is permanent and cannot be modified or deleted, with the owner having the guarantee that his signature will not be forged and his identity will not be defrauded throughout the existence of the blockchain.
The use of Blockchain technology opens up new investment possibilities (e.g. fractional selling) and creates an economy where users have more effective control over the digital assets that belong to them.
