Trust management of digital assets

There’s lot to know about blockchain technology, and it can be intimidating. Do you know what trust management of digital assets is? How about the trust management agreement? What do you know about investment trusts? Do you even know what a blockchain is and which blockchain technologies exist? If you understand all that, do you know if any trust management platform is completely built on blockchain technology? Could you name one?
Don’t be scared by these questions. We are not planning on quizzing you (even though that might be fun). We just want to make sure we’re all on the same page!
If your answer to any of these questions was “no,” or if you’d just like to learn more about these things, keep reading!

Making a long story short

First of all, let us introduce you to the story behind this entire modern era and what we’re doing here. If you’re already familiar with recent trends, feel free to skip ahead to another section.
If you’ve been asleep for half of the last decade, then you’ve missed the news about Bitcoin. Bitcoin was the first cryptocurrency, and also the first cryptocurrency to achieve tremendous results. Bitcoin started the trend of blockchain-based cryptocurrencies, and lots of developers rushed to join the trend as quickly as possible.
Membrana is our blockchain platform. We released Membrana’s beta version in Q2 2018. It was built on Ethereum, using Metamask for an extra level of security. Ethereum is decentralized and safe; it provides transparency to all operations on the platform and enables advanced smart contracts — agreements.

Digital assets

We mentioned digital assets, but we didn’t clarify what those are. When you think about digital assets, the first thing that comes to mind is something that exists digitally.
This isn’t wrong, but it’s not entirely correct either. Unless a form of data comes with the right to use, it isn’t considered an asset. In order to be a digital asset, the file should also be valuable to whoever owns it.
Lastly, but not least, the file has to be available to users (the ones that have the right to access it) in order to actually be useful.

More about digital assets

Now you know what digital assets are, but you still don’t necessarily know what you can do with them, or how you can do it.
Even if you’ve never heard of digital assets before, the word “assets” helps you understand what they could be, since most people can relate to the financial language at least a little. A digital asset is exactly what you thought of at first: it’s something that you can invest in now, and get money from later (a lot like with stocks).
Properly storing digital assets is important. Once an asset becomes inaccessible, it becomes worthless.
Here are some examples of the kind of information that can get lost due to bad storage, causing a lot of trouble:
  • The name of the photographer who took a picture;
  • The rights owner of a video;
  • A license once agreed to.

Getting rid of manual, ineffective, and slow storage

We’ve mentioned how important it is for a company to properly store digital assets in order to avoid lots of problems. The reality is that manual storage isn’t as easy or effective as it should be. That’s where DAM (Digital Asset Management) systems come in.
Now we’re getting closer to the main point.
DAM systems help companies store their data properly. This means everything is organized perfectly so that only employees or specific user groups will be able to access that data. These systems aren’t cheap, and it takes time and effort to make them worthwhile.

Introduction to the trust management agreement

We will explain the roles of "investor" and "trader" in the trust management agreement, as well as what a trust management is, but first let’s talk about the trust itself. In the business world, a “trust” represents a structure where a manager (trader) manages a business in the name of members of the trust. In this case, the trader is allowed to use assets in order to handle the investor's debts.
Now, onto the investor and the trader. Basically, the creator (owner) of a trust is called the investor. The trader is the person who will be responsible for the trust. The trader usually gets appointed by the investor. That person (the trader) manages the trust.
Finally, the trust agreement represents an agreement through which the investor gives certain traders the ownership rights to certain assets.

Investment trusts

If you weren’t familiar with all of these phrases you might have found this all a bit hard to read, but we’ve tried to keep it as simple and informative as we could.
Finally, we’d like to wrap things up by explaining what investment trusts are.
An investment trust is nothing more than a publicly-listed company. You’re making money by investing in assets (in this case, shares) owned by other companies, and that’s it. One thing worth mentioning is that investment trusts are buyable and sellable on the market.

Comments

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