Vipin Vindal, CEO, Quarks Technosoft Pvt Ltd, shares his views on why blockchain can help guarantee ownership of assets and why high liquidity can be beneficial for cryptocurrency exchanges.
1. What are the three best practices that today’s youth should follow when it comes to digital assets?
The first logical step is to know what digital assets you have, and what they are used for. Doing an audit of your existing digital content can help you set your DAM goals and give you an insight into which type of software you need.
Choose DAM Tech which is secure and easy to use. It is not easy to have your digital assets organized and at hand. DAM solutions provide an effective, organized way to keep all your media easily searchable and manageable. Now that you are equipped with some best practices, it is time to choose the right solution to win at digital asset management.
2. How can block chain be used to keep digital assets safe? Which are the apps consumers can use?
Digital assets are not physical objects, they are just cryptographic hashes, and this makes it possible for these assets to store in blockchain.
Blockchain uses a publicly distributed network to store data. In blockchain you cannot edit, update or delete existing data, only new entries are allowed which makes it temper free. It is also publicly available which makes all transitions transparent. When it comes to a digital asset, ownership of the asset only matters, and blockchain can guarantee ownership of assets.
3. What are three tips you would like to give to people who dabble in crypto trading?
– Do your research: Before diving into the whole crypto thing, you do your research first. Try to understand how crypto and web3 work. Know about the basic fundamentals of blockchain and its applications. Know its pros and cons.
– Learn the technicalities: Go to all blockchain applications and learn about their technical aspects. Learn about liquidity mining, staking, decentralized finance, and more to broaden your scope of knowledge.
– Use a trusted exchange: most crypto exchanges are not regulated by the government or any central authority, which makes them very risky. Before investing in any exchange know about their backing and user base. For any exchange, it is very important how much liquidity it provides. Low liquidity is not good. In case you want to sell your assets you may not find a buyer.
4. Which according to you is the country leading in the space and the Indian start-up ecosystem can pick up the best use cases?
The Indian startup can look into NFT, digital assets that intend to bring ownership. NFT are great for digital assets management. India is a nation with a large population. All states of India have their own document management system, making it hard to verify documents across states. NFT can be used for government-issued documents. NFT is also used for Music, Art, and other creative assets.
5. What are the disadvantages of blockchain?
Blockchain is a network of decentralized and distributed data (ledger), meaning the users share the ownership and management of the network through computer nodes. Decentralized and distributed networks require a large infrastructure. Large networks are sometimes slow. Large networks have high implementation costs. Blockchain does not offer any modification of existing data which makes its uses limited to applications.