In today’s day and age, most people store everything on the internet - from their money to their memories. These personal and professional assets are stored in murky corners of the internet, often unchecked and unsecure. But how do you differentiate between a digital asset and a random chunk of information? We believe there’s a clear distinction.
What is a digital asset? 📹
A digital asset is any digital file such as a:
- word file
Private usage and/or ownership rights distinguish digital assets from publicly available digital information. For example, this means that copyrighted information and cryptocurrency holdings are considered digital assets, whereas readily available stock photos from sites like Shutterstock are not.
Simply put, any digital file that holds a certain monetary value (direct or indirect) are considered digital assets. This monetary value may be legally recognised depending on the asset. Cryptocurrency tokens, for example, are not considered legal tender. However, they are still considered valuable as they can be traded in exchange for various products, services and securities. So how valuable are digital assets?
The true importance of digital assets 🖨
Simply put, they are as valuable as your physical assets. Personal digital assets include all information saved on electronic devices, cloud accounts and others such as social media accounts.
They may hold pictures worth a few lifetimes that have strong sentimental value and need to be completely secure. Other personal assets such as a design file, a software program, an eBook or even a great picture that can be used as a paid stock photo, are your intellectual property. These hold more of a monetary value.
Businesses deal with more sensitive digital assets. For example, a digital business can have access to detailed customer data including:
- banking and credit card information
- residential addresses
- contact details
- personal and family details
When the business gains access to this information, it also takes on the responsibility of protecting it from cyber-attacks and data breaches. As a result, various national authorities from Australia and the E.U. have been looking to implement stricter data privacy laws that allow users to directly sue tech businesses in the event of a breach. This is being done to ensure that businesses on the internet protect the customer data they are privy to. At Bequest, we don’t even see your will information because of privacy rights. Our partners at JPEP are the only ones who see your private will as they write and check each and every will that comes through our platform.
Can these assets be insured in any way? 🖇
Absolutely! Digital assets hold monetary value, and like any other asset, there is a budding market for insurance products for them. While there are some security tools that help us protect these digital assets, they are not always entirely secure. Big tech organisations like Apple and Google have faced legal scrutiny multiple times because of data breaches.
Basic digital asset insurance agreements protect against the loss or theft of private keys, domain names and digital information stored on electronic devices or cloud accounts. In addition, a few custom products offer special protection against the loss of specific, sensitive files and keys.
Apart from providing insurance against loss or theft, these products also allow you to ask for legal help in a data breach. The legal assistance will prove extremely helpful in the event of a copyright dispute where your stolen data is being used by someone else on the internet for their monetary gain.
Safeguarding your assets ✍️
All in all, your digital assets (both personal and shared) are worth a lot. Therefore, it is essential to understand what they are and the security behind them. You are advised to err on the side of caution and monitor any digital assets that you own every now and again.
These assets can also be added to your will through our online will services. This will ensure that they are handed over to your next of kin or any other loved one after your death. This is a key piece to your estate!