Chapter 5
Decentralized Assets
IN THIS CHAPTER
Exploring the many types of decentralized assets
Discerning truly decentralized assets from centrally managed assets
Distinguishing native versus non-native tokens
As a decentralized yet secure method of recordkeeping, blockchain technology provides a vehicle by which to implement and deliver many different types of asset classes. Much like how a piece of paper can be used to print money, a stock certificate, or a car title, crypto can be used to represent a number of things. It all depends on the intent of the developers and what they are choosing to keep a record of.
The general groupings of asset types are not mutually exclusive, and tokens don’t all fit neatly into a single category. Still, crypto assets all share one defining feature: the distributed ledger technology on which they are secured. From decentralized currencies to security tokens to memes, the range of what a crypto asset can represent is vast.
Moreover, not all crypto assets are truly decentralized; many are monitored and controlled by a central authority after issuance. For instance fiat-backed stablecoins, such as Tether (USDT) and USD Coin (USDC), are issued by ...
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