Digital asset management: Can blockchain technology assist in protection?

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  Quantumrun Foresight
• October 18, 2022

Insight summary

As ownership of digital assets and identities grows, the necessity for digital asset management (DAM) solutions also increases. Multiple companies have experienced difficulty managing their digital resources efficiently, which may cause lost data, security risks, and hinders project collaboration. Meanwhile, loss and theft can have more severe consequences for digital identities. Some companies are looking at blockchain to create a safer and decentralized DAM.

Digital asset management context

A digital asset is a file created or acquired by an organization for communication, collaboration, or business processes. Businesses utilize DAM solutions to store digital assets, providing firms with a central file repository, collaboration tools, version control, and file security. A DAM system allows businesses to efficiently index, organize, and search for their digital assets. In addition, administrators can track users and limit access to assets so that only authorized individuals can see, edit, or remove them. 

Meanwhile, the management of digital identities is more sensitive and complex. Most public institutions and companies use physical credentials (e.g., passports, social security cards, and employee badges) to identify people and permit individuals to decide where they are stored and accessed. Credentials that can be verified similarly to physical credentials are called verifiable credentials (VC).

These VCs can be stored in a digital wallet on a smartphone or in the cloud. However, digital identity storage has its risks. Numerous accounts maintained by a specific business have increased security and privacy concerns. Simply converting a business procedure or physical ID to a digital format does not eliminate the dangers.

Disruptive impact

Several companies have invested in improving DAM systems through blockchain’s consensus and distributed features. In 2022, the digital asset management platform Gnosis Safe announced that it had split from its parent company Gnosis Ltd and rebranded as Safe. Safe began as an Ethereum blockchain wallet that used smart contracts rather than simple private keys or seed phrases to safeguard assets.

The project’s goal was to collaborate with decentralized autonomous organizations (DAOs), corporations, and institutional clients to provide them with the authentication tools they need so that businesses can use digital wallets safely. These solutions include a multi-signature private key signing for wallets requiring multiple participants to unlock assets before being moved. This system minimizes the likelihood that a single person would be in control.

Meanwhile, digital wallets are being explored as a more secure method to safeguard and manage digital identities. A potential use case for such wallets includes COVID-19 vaccination certificates, as evidenced by the European Union (EU) allowing national governments to create EU Digital COVID Certificates for wallets that citizens control. The storage of vaccination-related digital data in a central database allows for faster and more convenient verification but also raises ethical, security, and privacy issues. For example, such databases are attractive targets for hackers. These databases may also facilitate unintentional profiling and limit individuals’ control over processing their personal information. 

Implications of managing digital assets

Wider implications of managing digital assets may include: 

• More governments investing in their respective national digital wallet identification systems to merge public services with identity verification.
• Companies using blockchain “safes” to store sensitive information, including employee and client databases.
• More startups competing in the super digital wallet space, where financial transactions and identification are merged into one versatile platform.
• Combining verifiable credentials, biometrics, and digital wallets to create a DAM system resistant to hacking and theft.
• An increase in attempted cyberattacks to obtain digital assets and identities. 
• Big Tech and social media companies competing to develop the next-level digital identity and content management platform to offer users more convenience and privacy.

Questions to consider

• What other technological advances might assist in digital asset management?
• How might super digital wallets change the way people conduct business transactions?