fiat currency,</strong> and is one of the oldest and most organic kinds of economic activity in the history of mankind. Even though this works fine in a small context with physical proximity, it does not operate on a broader scale due to evident distance concerns and an absence of conventional units of measurement.</p>\n<p><strong>Blockchain enables the possibility for people to digitize physical products and services with <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-token/">tokens, and it solves the issue of physical proximity in that manner. </strong>Speaking of the example mentioned above, individuals can pay their advertisement token with the product token from anywhere around the world.</p>\n<p>Both tokens are virtual, serve as templates for the actual asset, and can be redeemed for goods or services. 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But nowadays, it mostly means <strong>digital currencies</strong>.</p>\n<p>Moreover, the term digital commodity trading can also mean selling physical assets such as gas and oil in a digital manner. However, in this context, the term refers to <strong>the digitization of different elements of the commodity trading chain</strong>.</p>\n<p>For instance, technology can be employed to:</p>\n<ul>\n<li>Automate the protection of particular assets. </li>\n<li>For large-scale data mining aimed at assisting traders in making better investing selections.</li>\n<li>Settlement and documentation.</li>\n<li>Back-office activities like settlement and paperwork can be automated.</li>\n</ul>\n<p>To put things into perspective, digital commodities management is targeted directly at cryptocurrencies. In the U.S., lawmakers signed <strong>the Digital Commodity Exchange Act 2020</strong> to manage the processes of exchange platforms.</p>\n<p>Other policies and guidelines controlling the usage of cryptocurrencies and related operations have emerged swiftly in recent years. It is ranging from New York state's BitLicense to the United Kingdom's prohibition on the selling of crypto derivatives to ordinary investors.</p>\n<p>Since <strong>cryptocurrencies are commodities</strong>, they may be utilized as the foundation for derivatives, which are famous financial instruments whose worth is determined by the worth of a fundamental item. A trader, for example, may decide to engage in a derivatives contract that allows them the option to purchase and sell a particular quantity of cryptocurrency at a specific date or price.</p>\n<p>Many believe that the evolution of derives is very essential for the adoption of digital assets around the world.</p>","level":"easy","meta_title":"What is Digital Commodity? Definition & Meaning | Crypto Wiki","meta_description":"Digital Commodity meaning: Digital Commodity - is a product that exists digitally.","meta_keywords":null,"language":"en","created_at":"2022-03-07T14:51:39.000000Z","updated_at":"2022-12-29T12:42:55.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-digital-commodity"},"prevSection":{"id":273,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Digital Asset Ecosystem?","slug":"what-is-digital-asset-ecosystem","section":"D","keyword":"Digital Asset Ecosystem","status":"published","definition":"is an area that encompasses all aspects of the crypto world.","content":"<p><strong>Different cryptocurrency tokens, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">NFTs (non-fungible tokens), goods and services, futures, and stablecoins are all included in a digital asset ecosystem. </strong>As expected, the digital asset ecosystem is a broad phrase with several subgroups.</p>\n<p>From 2009, when <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">
Bitcoin was first launched, the cryptocurrency ecosystem had been rapidly growing and still does to this day. Art in the form of NFTs and finance merged with the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-central-bank-digital-currency/">
central bank digital currencies</strong></a> <strong>(CBDCs),</strong> real estate, gambling, gaming, healthcare, and insurance all had skyrocketed in evolvement.</p>\n<p>The digital asset ecosystem helps traditional assets to become <strong>digitally accessible</strong> to investors, therefore, lowering the prices linked to them.</p>\n<p>Besides, this structure involves several protocols, so professional investors can earn exposure to a range of areas of crypto like <strong>blockchain gaming or yield farming</strong>.</p>\n<p>Furthermore, digital assets might have different governance structures, methods of occurring value, and bodies.</p>\n<p>All in all, the digital asset ecosystem can be simply described as a collection of several classes that are protected by a core technology known as the blockchain. <strong>Cryptocurrencies, NFTs, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-stablecoin/">stablecoins, CBDCs, and asset-backed and security-backed tokens are a few examples.</strong></p>","level":"easy","meta_title":"What is Digital Asset Ecosystem? Definition & Meaning | Crypto Wiki","meta_description":"Digital Asset Ecosystem meaning: Digital Asset Ecosystem - is an area that encompasses all aspects of the crypto world.","meta_keywords":null,"language":"en","created_at":"2022-03-07T14:26:34.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-digital-asset-ecosystem"},"currentChapter":"D","currentSection":"what-is-digital-barter-economy","chapterTitle":"D","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-digital-barter-economy","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0"> Crypto Terms: Letter D
What is Digital Barter Economy?
Digital Barter Economy MEANING:
Digital Barter Economy -
is the exchange of products and services directly.
Let's find out Digital Barter Economy meaning, definition in crypto,
what is Digital Barter Economy,
and all other detailed facts.
One of the most known examples is when influencers exchange their advertisement for a free product of that kind.
Early civilizations used common agreed-upon products, such as animal skins or salt, as a form of money that people could use to exchange goods and services.
The digital barter economy is quite adaptable, hence it is theoretically achievable to pay for that advertisement with a revenue share token or a tokenized fragment of a famous painting.
Furthermore, it functions as a means of trade, similar to fiat currency, and is one of the oldest and most organic kinds of economic activity in the history of mankind. Even though this works fine in a small context with physical proximity, it does not operate on a broader scale due to evident distance concerns and an absence of conventional units of measurement.
Blockchain enables the possibility for people to digitize physical products and services with tokens, and it solves the issue of physical proximity in that manner. Speaking of the example mentioned above, individuals can pay their advertisement token with the product token from anywhere around the world.
Both tokens are virtual, serve as templates for the actual asset, and can be redeemed for goods or services. In addition to digitizing actual products, blockchain strengthens digital trade by allowing users to swap tokens they already have for the token they desire.
Digital barter uses blockchain techniques to deliver the fundamentals of the old physical barter economy into the 21st century, giving answers to the physical and conventional unit hurdles that prevent trading at volume.
Moreover, an additional upgrade is that digital barter economies can have products that are not physical (a patent of intellectual property), or large products that can’t be used as means of payment in their physical form.
When digital assets are generated on the blockchain, they can basically be fractured digitally, which would be impossible in the real world due to the destruction and devaluation of the underlying physical commodity.
