A digital asset is a unit of data that is created and stored digitally which is identifiable, discoverable, and that is used to realise or represent ownership, value, utility, or other characteristics. What has made digital assets disrupt the traditional financial industry is the key characteristics that define it.

Here are the 5 key elements of digital assets that make it stand out:

Key Elements of Digital Assets

  1. Transparency

Thanks to blockchain technology and decentralised finance, transactions that are recorded on the digital ledger can be viewed by anyone. While there is still a level of privacy with the blockchain and digital asset transactions, the transparency of this structure can allow for more visibility and clarification of the parties engaging in a transaction.

  1. Security

As the transaction is recorded on the digital legers, tracking transactions and establishing audit trails is relatively efficient and secure. For example, digital assets that are stored on a blockchain are typically immutable, meaning that once a transaction has been recorded on the blockchain, it cannot be changed or deleted. This provides a high level of security and eliminates the risk of fraud or manipulation.

  1. Decentralised

The adoption of digital ledgers to record asset ownership is a core component to digital assets. Unlike traditional assets that are recorded in a private ledger managed by centralised parties, the digital assets are decentralised and allow consumers to trade digital assets without the need of financial intermediaries.

  1. Self-contained

Digital assets do not need any other contracts or assets to back its value. They are native coins or tokens of the blockchain network and represent a cryptographically secure digital store of value recorded on a distributed ledger. 

  1. Identifiable

Digital assets identifier is generated when a transaction happens. The volume of transferred digital assets is the volume of transferred the right of access to the information resource. Digital assets are uniquely identifiable, searchable and discoverable as they are created and stored digitally.


Overall, the characteristics and elements of digital assets have contributed to the creation of a transparent, secure, and efficient ecosystem that is transforming the way we interact with financial assets. As more individuals and organisations adopt these technologies, we can expect to see continued innovation and evolution in the world of digital assets.

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Frequently Asked Questions

The Centre for Finance, Technology & Entrepreneurship (CFTE) is a global education platform that aims to equip financial professionals and organisations with the necessary skills to remain competitive in a rapidly changing industry. Our leading training programmes, curated by global industry experts, help talent build skills to join the digital revolution in finance. CFTE’s courses are globally recognised with accreditations from ACT, IBF, CPD, SkillsFuture and ABS.

At CFTE, our mission resonates with every learner’s goals to rapidly advance in their career, to thrive in their next project or even to lead the disruption in finance with their own venture. To help you do this, CFTE gives you the tools you need to master the right skills in digital finance. We bring exclusive insights from leaders that are steering the developments in the financial sphere from global CEOs to disruptive entrepreneurs. With CFTE you don’t just learn what’s in the books, you live the experience by grasping real-world applications.

If you are looking for rich insights into how the Financial Technology arena is transforming from within, we can help you get the latest knowledge that will stir things up in your career. CFTE offers leading online programmes in digital finance, covering an expanse of topics like – Payments, AI, Open Banking, Platforms, Fintech, Intrapreneurship and more, that will help you conquer the financial technology landscape. With this expertise at your disposal, you will be on track to turbocharge your career.

You will be learning from a curated line-up of industry leaders, experts, and entrepreneurs hailing from Fortune 500 companies and Tech Unicorns, among others. They will each be presenting their knowledge and experience in the field of digital finance. No matter if you are embarking on a new journey or fortifying your role, these lecturers and guest experts will guide you through the perspective of established institutions like – Starling Bank, Wells Fargo, tech giants like – Google, IBM, successful startups such as – Kabbage or Plaid, among many more!