The Digital Asset Sector Hierarchy - DASH™ integrative taxonomy framework: findings from analysis of +2500 exchange traded Digital Assets over 14 months.
The DASH™ framework architecture offers clarity, understanding and context against traditional asset classes; serving as the only classification system for Digital Assets without outliers. Available for Financial Services Products (ETF) Design and Development. When market data is integrated into the framework, the results are Digital Asset Composite Performance Indices tracking macro and micro market movements across Asset Classes, Sector, and Sub-Sectors.
Fundamentals based hierarchical domain architecture - broad to specific - identifying and defining the underlying nature and operating sectors of exchange traded Digital Assets worldwide.
The only Asset Class / Economic Sector categorization and classification system without outliers.
DIGITAL ASSET CLASS
By Lori Jo Underhill, Digital Economist © 2019
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Digital Technology is affecting fundamental systemic change to world-wide transaction and financial systems.
The exchange traded Digital Economy is separated into Four Digital Asset classes and are the cornerstone of the DASH – Digital Asset Sector Hierarchy™ fundamental construct for Digital Assets.
Digital Commodity, Digital Currency, Digital Certificate of Value, Digital Equity.
The ecosystem also has a Non-Financial "Digital Unit".
Blockchain, Distributed, Decentralized, Public, Private, and Hyper Ledger Technologies can utilize items that have no external or inherent financial value; yet are useful and functional with potential economic value through utility.
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, are the same in character, and are 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, are the same in character, and are 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 fungible. Fungible assets are not unique to one another, are the same in character, and are 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: Sub-Asset Classes include Digital Equity - Security - (different classes of investment instruments classified as Securities:) Digital Equity - Digital Security - Digital Unit Trusts; Digital Equity - Digital Security - Digital Mutual Funds; etc: ie: Investment-linked assurance schemes, Structured investment products, Mandatory provident funds, Pooled retirement funds, Investment-linked deposits, Paper gold schemes, Exchange-traded funds, Leveraged and inverse products, Real estate investment trusts, Closed-ended funds, Listed and unlisted shares and debentures, etc.. Digital Equity - Real Property, Digital Equity - Collectibles (Cryptokitties), 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 external or inherent financial value; yet are useful and functional with economic value through utility.
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.
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About the Underhill Madsen Organization, The UMI Digital Asset Market Index and UMI-DASH Digital Asset Sector Hierarchy™ framework and indices.
The UMI Digital Asset Market Index™ and UMI-DASH Digital Asset Sector Hierarchy™ Indices are produced from the Underhill Madsen Organization’s UMI-DASH Digital Asset Sector Hierarchy™ framework; to identify, define, categorize, classify, analyze, and benchmark market data for context and insights about Digital Asset activity, economies, ecosystems, and emerging technologies.