Virtual Assets and Digital Assets: to the Question of Correlation of Concepts

Abstract

Problem setting. The trend of the modern world is digital transformation. This is a rapid and diverse process of transition from traditional methods of work and life of the state, society and citizens to a new digital environment where information, information technology, digital platforms, virtual assets and other new digital phenomena play a crucial role. Thus, every year we observe an increase in the importance of information technology (IT) and its impact on the development of various sectors of the economy and society as a whole. The progress of IT significantly affects many aspects of the life of a wide range of entities: from the state represented by the relevant authorities to individuals and business entities. First of all, information technologies help to increase labor productivity, and drive the development of new sectors of the economy, such as information services, software, e-commerce, and others. Government agencies and local governments use IT to improve the provision of services to citizens, ensure transparency and interact with the public. The development of IT has made it possible to create decentralized platforms and smart contracts on the blockchain, which allow creating and interacting with digital assets in an automated manner without intermediaries. Therefore, many states and other entities are actively investing in information technology and digital platforms, exploring their opportunities and risks, and developing strategies for their implementation. One of the core new technologies is blockchain. Blockchain is a distributed database that ensures the security and integrity of transactions. The development of cryptography and distributed technology has made it possible to create digital and virtual assets. Along with these concepts, such categories as virtual currencies, cryptoassets, cryptocurrencies, digital currencies, etc. are actively used in circulation. Analysis of resent researches and publications. A number of scholars have devoted their works to the study of the legal nature of such new digital phenomena as digital and virtual assets, as well as approaches to their legal regulation: S. Goncharenko, V. Korneev, A. Kud, M. Kucheriavenko, A. Ovcharenko, V. Polatai, V. Riadinska, E. Smychok, A. Protsenko ect. At the same time, given the relatively short period of existence of the phenomena under consideration, as well as the completely new format of their functioning, there are currently different points of view on the definition and characterization of virtual assets and digital assets, as well as their legal consolidation and correlation. In view of the above. Target of research. The purpose of the article is to outline approaches to the correlation of such concepts as virtual assets and digital assets. Article’s main body. The article outlines some approaches to the relationship between digital and virtual assets, defining these concepts, providing their characteristics and pointing out key differences. It is stated that digital assets are represented in a digital format and may be associated with real objects, may have physical equivalents, and their owners may own them. Virtual assets exist primarily in a virtual environment and may not have a real physical counterpart, such as virtual currency created using cryptography or virtual items in games. The article emphasizes the importance of understanding these concepts in the context of modern digital technologies and offers readers some insight into the nature and application of digital and virtual assets. Conclusions and prospects for the development. Obviously, the development of information technology encourages innovation in the field of digital assets and increases competition among developers of innovative solutions. The distinction and correlation of the concepts of “digital asset” and “virtual asset” is quite correct in view of the definition of the semantic meaning of the words “digital” and “virtual”. Therefore, these words indicate two different aspects related to information and objects that exist in the digital environment due to the functioning of the latest information technologies.