Digital Asset Framework

Categories: Tech

Ever heard of a little thing called cryptocurrency? Yeah, we thought so. But have you ever thought about what makes them...legit?

That’s where the digital asset framework comes in.

Digital asset framework is a list of basic factors that a cryptocurrency needs to follow in order to be listed on an exchange. The cryptocurrency world right now is the wild, wild west, but that doesn’t mean just any cryptocurrency is going to be allowed to be listed on an exchange.

Why bother getting your cryptocurrency on an exchange? It boosts its visibility, gets more investors on board, and makes it look more legit, since it’s had to jump through some hoops, like the digital asset framework hoop.

So just what’s in this framework? The technology underlying the currency, security (duh), how it’s managed, its ability to be scaled to a larger network, and more. Exchanges want currencies that have all of the same things that they look for in state-tied currencies. Once that’s met? Bring on the crypto-investing and call it a rodeo.

Find other enlightening terms in Shmoop Finance Genius Bar(f)