DASH - Digital Asset Sector Hierarchy™ Taxonomy Framework

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

SUB-ASSET CLASS

SECTOR

SUB-SECTOR

DIGITAL ASSET

By Lori Jo Underhill, Digital Economist © 2019 

More Articles and Information Available:

www.ljuassociates.com

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.