digital scarcity
"Digital scarcity" describes the intentional limitation of digital assets to create value, often achieved through technologies like blockchain.
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Definition
C1Cryptocurrencies
(technical, financial)The controlled limitation of digital assets or tokens, ensuring their supply is restricted to create value.
Example
- Bitcoin's digital scarcity is maintained through a fixed supply cap of 21 million coins.
- The value of many cryptocurrencies relies on the principle of digital scarcity.
C1Technology
(technical)The use of software and cryptographic techniques to limit the replication and distribution of digital items.
Example
- Blockchain technology enables digital scarcity by preventing the duplication of digital assets.
- Digital art can achieve scarcity through non-fungible tokens (NFTs).