Technology, Business, Digital Economy, Construction, Media

"Defining the Digital Economy”

By Lori Jo Underhill © 2019 (Currently Under Review for Publication)

ABSTRACT

“Crypto-Currency” (Digital Asset) technologies, currently including crypto-currency,  blockchain, distributed ledger, and decentralized networks, are affecting fundamental systemic change to world-wide transactional and financial systems. 

Digital Assets are a blend of technology and finance. The article is just a glimpse into the possibilities for clarification in this space.

The 40 page writing is the result of over nine months of research and analysis of over 2000 Digital Assets operating in the worldwide exchange traded ecosystem during 2018. 

This work includes the identification and definition of four Digital Asset classes, a new view of economy, and offers granular fundamental economic analysis specifically designed for new and emerging Digital Asset technologies and ecosystems. Individuals, entities, institutions, and regulators can now frame coherent context against a reproducible construct to support seamless integration of these technologies into existing economic and regulatory infrastructures.

THE NEW DIGITAL ECONOMY SUMMARIZED 

The exchange traded Digital Economy is separated into four asset classes: Digital Commodities, Digital Currencies, Digital Certificates of Value, Digital Equities.

Definition:  A “Digital Commodity” is a consensus of trust and confidence; its value exists on its own without an underlying economy. A Digital Commodity  can be perceived to be scarce, in limited supply, difficult or expensive to divide, extract, use, or transfer. A Digital Commodity is fungible.  Fungible assets are not unique to one another, the same in character,  and interchangeable.

Examples:  Gold, Silver,  Pork Bellies, Natural Gas, Oil, Bitcoin. One bar of 24-carat gold is  the same as another bar of 24-carat gold. One Bitcoin is the same as  another Bitcoin in its character.

Definition:  A “Digital Currency” requires a consensus of trust, confidence; is a unit of account, divisible, stable, accepted; measured against other assets or currencies of value; possibly regulated by authority or governance framework; and supported by an underlying technology, utility, activity, or economy.  It may have value or utility within its underlying micro economy; and may, or may not, have any value outside of the underlying economy.  Currencies are generated or destroyed as needed for utilization by the underlying economy by the authority or governance framework.  Currencies are fungible.  Fungible assets are not unique to one another, the same in character, and interchangeable.

Examples:   EUR, USD, CHF, JPY, EOS, ETH, XRP. One Euro is the same as another  Euro, and one Ether is the same as another Ether in its character.

Definition:  A “Digital Certificate of Value” has inherent value as a representation of a certificate that can be presented to the underlying asset  custodian in exchange for the actual underlying asset (tangible, intangible, Digital Commodity or currency), in proportionate value as identified by the governance framework of the Digital Asset. Digital Certificates of Value are generally fungible.  Fungible assets are not unique to one another, the same in character, and interchangeable.

Examples:   The United States Dollar before the gold standard was abolished. The  Gemini Dollar or Tether backed by the United States Dollar. The Carat  backed by Diamonds. Any Digital Asset that has an underlying asset held  in custody and can be redeemed for the underlying asset. Divisibility is a consideration in the analysis.  One Gemini Dollar is the same as another Gemini Dollar in its character.  These Digital Assets are  sometimes referred to as “Stable Coins.”

Definition:  A “Digital Equity” is a representation of an ownership interest; whole or fractional, tangible or intangible. A market may or may not exist in consensus for the value of the underlying property.  A Digital Equity is difficult or impossible to divide.  A Digital Equity is non-fungible. A non-fungible asset is unique in its characteristic as a representation of another asset or item, or the manifestation of one unique and serialized intangible or tangible asset or item. Digital Equities are unique to one another, distinct in character, and not interchangeable.

Examples:  Unique Shares of an Entity, Ownership in Real Property, Cryptokitties, Bonds, Shares in Financial Products, Unique Artwork, Jewelry, or Couture Fashion. Any asset that is indivisible, serialized, or unique.

                                                                                                                                                              

Blockchain, Distributed, Decentralized, Public, Private, and Hyper Ledger Technologies can utilize items that have no economic value; yet are useful and functional.

Definition:   A piece of software that is functional and useful, is not an asset,  has no inherent financial value, external financial value, and does not  represent an asset or a store of value that has financial value.  It  could be fungible or non-fungible depending on its use case.  The supply  of the software could be finite or infinite depending on its use case.   The software can be a manifestation of something, or represent something underlying that may, or may not, have utilitarian or economic value;  however, the unit itself has no financial value. 

Examples: A Vote, Identity, Digital Container, Measurement, Store of Information, or Store of Data.

The Merging of Sports and Technology has come of age. GLOBAL SPEED INDEX  - The World’s Virtual Racetrack for Action Sport  Competition  - OFFLINE and ONLINE MODE will see INCREASED PERFORMANCE  with the launch of a new Satellite into the GPS Constellation.

Venice, California, February 8, 2016

It is a brand new era in Action Sport athletic pursuits when a newly launched IIF GPS Satellite circling 12,550 miles above the earth’s surface, in a whirlwind of human technological accomplishment, has a direct and measurable effect on the pursuits of an athlete gripped to the earth’s surface in pursuit of glory in athletic performance.  

The athletes competing with Global Speed Index on The World’s Virtual Racetrack for action sport competition (GSI is a FREE mobile platform built for Android and iOS devices) will soon experience increased performance as a result of the newest satellite now launched into to the GPS Satellite Constellation.  

Global Speed Index, available on GooglePlay and the AppStore utilizes both extra-terrestrial GPS technology, and terrestrial based WIFI enhancement positioning technology through standard smartphone devices, providing athletes around the world a technical platform to measure and record athletic performances.  The Global Speed Index platform allows free competition in a virtual arena for action sports.  Global Speed Index’s OFFLINE MODE relies on GPS satellite technology to collect and record data.  The improvement in the extra-terrestrial accuracy will enhance Global Speed Index performance metrics.