Broadly speaking, cryptoassets are cryptographically-secured digital assets that can be transferred, stored, and traded electronically.
What are cryptoassets?
A defining feature of all cryptoassets is that they are underpinned by distributed ledger technology (DLT). A distributed ledger is essentially a computerised database of transactions that is implemented across a network of computers and has no central administrator or centralised data storage. Because all of the information in the database is stored across the network, it’s said to be ‘decentralised.’ With a distributed ledger, any transaction that takes place on the network is recorded in multiple places at the same time. This means there is a higher level of security relative to a ‘centralised’ ledger, where data is stored in one place.