Comprehensive Classification of Virtual Assets Developed

A comprehensive classification of virtual assets has been developed for the first time in the world here, in Ukraine. It covers all known types of virtual assets of the distributed ledger. Numerous classifications of virtual assets exist these days, but none of them is universal enough or science-based to be applied to all virtual assets. In other words, many attempts were made to organize virtual assets in order to resolve the issue of legal regulation of relations arising in the field of their application. However, they were all unsuccessful as the modern society regards their results only as a theory. For the purpose of application of the classification, theoretical basis is just the first step on the path of logical and scientific substantiation of levels of classification of virtual assets.

The comprehensive multilevel classification of virtual assets, the development of which Aleksandr Kud has described in his paper Comprehensive Classification of Virtual Assets as part of his scientific activities, is aimed at application.

The results of research done by the Ukrainian scientist Aleksandr Kud with assistance of the Research Center of Blockchain Solutions on the issues of introducing the distributed ledger technology, in particular operation of decentralized information platforms based on this technology, offer brand new opportunities of using blockchain. These user opportunities, first of all, lie in the fact that blockchain is essentially a digital environment not only for cryptocurrencies with a small number of properties, but also for digital assets, which have a whole set of properties and thus determine the widest range of their use in various areas.

For the Bitbon System being a decentralized information platform and for its Users, this classification of virtual assets means that the legal mechanisms of the Bitbon System get to a whole new level, which definitely confirms they comply with the international law and which also substantiates the new approach to using blockchain. This approach lies in the fact that blockchain is an accounting system by its nature, the services of which allow performing accounting of the property and personal non-property rights of its Users through digital assets. Thus, the substantiation and confirmation of the legal mechanisms of the Bitbon System reveal the unlimited potential of using information technologies together with the real economy.

The new approach to using blockchain offered in this paper suggests that a concept of progressive economic and legal ecosystem is being formed and that it is possible that accounting of all types of rights will be performed using blockchain. The features of such an ecosystem will allow users to apply virtual assets as tools for implementing the methods of financial and management accounting of property on the basis of decentralized information platforms. Since such platforms are based on blockchain, the relations of their users will be based on trust and openness as all processes ensured by platform components and services are transparent owing to the basic properties of the technology itself.

You can read the paper Comprehensive Classification of Virtual Assets here: https://culturehealth.org/ijes_archive/ijes.2021.1.6.pdf

You can ask questions related to the comprehensive classification of virtual assets and leave your comments on the Facebook page of Aleksandr Kud: https://www.facebook.com/alexander.kud/posts/657616612306351