Demystifying the link between VDAs and blockchains

Virtual digital assets (‘VDAs’) are becoming increasingly mainstream. With recent amendments to the Prevention of Money Laundering Act, India has taken a substantial step towards governing this space. The conversation has also received global traction as it features as a key agenda item in India’s ongoing G-20 Presidency.

While there is increasing acceptance around the untenable value of VDAs, the topic is still riddled with jargon and is somewhat inaccessible to the larger public. There also still exist critics who often deem VDAs as ponzi schemes with no underlying value. This article seeks to break down the true value of VDAs in simple terms.

How are VDAs and Blockchains Linked
In order to understand the value of VDAs, it is first important to understand what a blockchain is. One can think of public blockchains as digital ledgers, similar to online spreadsheets, shared across and maintained by a network of participants who view and validate the stored data.

Such blockchains enable participants to transact with one another on the network without the involvement of a central…

Read more…