Digital asset management software, also known as a digital asset management platform, enables organisations to manage, organise, discover, store, retrieve and share data from a single point of access. Digital asset management systems enable internal teams to manage complex portfolios of rich media content from a central interface with ease.

Source: Pimcore

The importance of DAM software and blockchain in managing digital assets

As the volume of digital assets increases, so does the coordination effort. DAM offers many benefits to organisations that work with digital assets, and this is a reason to get DAM software if you have none.

Although Blockchain technology is not limited to financial transactions, it has many advantages over traditional transactions and it is for this reason, Bitcoin (alongside many others) uses blockchain in the management of financial transactions. In view of this, it is fitting to surmise that blockchain and DAM platforms have matters in common i.e., management of digital assets.

What Digital Asset Management encompasses

Source: dataworld

Asset protection 

At the most fundamental level, DAM software offers a secure repository for valuable digital files, making sure that valuable IP is protected and that brand media are stored safely. Also, the DAM’s reporting tool and file logging system makes it possible for you to track any user who accesses a file. Operating your company’s digital assets without digital asset management software may expose your digital assets to many dangers. Blockchains rely on the idea of distributed peer nodes that resolve the state of data using a consensus model. Any peer can accept a transaction and by this eliminate the need to rely on a centralised system that is at risk of attacks. Hackers majorly disrupt systems through distributed denial-of-service (DDoS) attacks; the attacks focus on a central server. This single point of failure does not exist with decentralised blockchain. Also, in digital cryptography, records can only be assessed or modified by the owner. However, owners can give special viewing permission to individuals to see the records in full or part. These permissions can be made time-sensitive, expiring after a certain time.

Prevents duplication

DAM plays an important role in preventing duplication of files and efforts by ensuring that original/source files don’t go missing. By doing this, it also prevents confusion during the creative process enabling much easy and faster location of assets in many organisations, which employees historically have spent hours searching for relevant data. Organisations that use DAM, can keep track of multiple iterations, store them centrally and know where to go for the latest version of an asset. It enables you to perform fast and targeted searches, thus increasing the productivity of your employees. This is particularly interesting as it doesn’t only save time but helps with content management and cost-saving. It also helps in the import and export of files and their enrichment with additional information. DAMs do not only ensure quality control but also facilitate organisations in sharing assets freely between multiple teams.

The benefits of DAM are inexhaustible, the results of which are increased productivity and creativity, better control over branding and measurement, lower cost and higher returns on digital assets. With this, it is safe to say digital asset management has a high return on investment.

DAM for digital agencies

Digital agencies are at a time where they have to consistently intensify the creative spark between themselves and their clients. They have to set the clock ahead of the time to meet the clients’ rising expectations. There are challenges such as asset automation, collaboration and brand consistency facing digital agencies. However, the key challenge is digital asset management. DAMs help digital agencies to streamline asset management and improve efficiency, boost creativity and innovation, and also reduce cost.

Digital asset management market size

In 2020, the digital asset management market was valued at $2,962.2 million, and it is expected to reach $8,158.6 million by 2026. DAM space is currently in the period of growth and this tremendous growth is due to the increasing investments and focus on digital marketing. Vendors in the market are now adopting strategic focus to attract customers.

Conclusion

The right digital asset management platform will provide control over vital materials that support marketing and production. Recently, companies have begun to evaluate the benefits of blockchain solution and how the existing DAM software interacts with blockchains. Integrating both will provide robust application programming interfaces (APIs) that facilitate integration into emerging technology. 

• Selfridges - which is, “bringing digital goods to real-life shopping and broadening its accessibility in fashion……. featuring artwork by Victor Vasarel and new physical pieces from designer brand Paco Rabanne inspired by Vasarely’s work.” (Vogue magazine)

• Gucci - selling virtual handbags at a higher price than the physical ones

• All 20 of the Premier Football League clubs 

• The British Museum is to sell its second set of NFTs

• The Hermitage Museum in St Petersburg to sell NFTs of Michelangelo paintings

• Hollywood actors and celebrities are selling NFTs

As the below chart shows, the attraction of NFTs is global. 

Countries with the highest NFT adoption rates

Source: Finder.com

However, is it the lawyers, accountants and consulting firms who are helping their clients to issue NFTs? If so, this could be treading on thin ice? If NFTs were to be classed as a form of cryptocurrency, then potentially should they only be issued by those organisations (in the UK) on the Financial Conduct Authority (FCA) crypto register? 

The reason this is ‘potentially’ is because the FCA definition of cryptocurrencies quotes: “Cryptoassets are cryptographically secured digital representations of value or contractual rights that use some type of distributed ledger technology (DLT) and can be transferred, stored or traded electronically.” The FCA has further stated that if a firm is engaged with the trading of crypto assets it is a requirement to apply to be on the FCA crypto register - which is not an insurmountable problem, especially for those firms already regulated. However, although required to have existing AML/KYC processes in place, the challenge for these firms is the time it can take to actually be entered onto the FCA crypto register since applications to date have involved a slow process. In addition, the FCA has already declared that in the summer of 2022 it will be announcing new rules: “The FCA’s draft rules include proposed restrictions on the marketing of cryptoassets, in preparation for the Government bringing the promotion of these high-risk investments under the FCA’s remit.” Meanwhile in the US, whilst no formal definition for crypto assets exists, the Investment News publication has reported that “the SEC has the authority to regulate crypto-currencies because they're often part of an investment contract, which meets the definition of a security under current law”. So, given that an NFT is a unique digital representation (typically of intellectual property i.e., an asset), will the American regulators endeavour to argue that NFTs are securities?

Something else for consideration is that, if in the future we see record labels, museums, sports clubs, tech start-ups being sanctioned by regulators in different jurisdictions for selling crypto assets without the appropriate regulatory licenses, will these issuers of NFTs therefore sue their advisors? Furthermore, if this were to happen, are the legal, accounting and consulting firms actually insured? Ben Davis at Superscript (a specialist digital asset insurance brokerage in the UK) told us: “Companies need to ensure that they have kept their underwriters/ providers of insurance up to date with any changes in their business activities. Most insurers specifically ask whether their clients engage or work with digital assets as it changes their exposure and the risk they’re insuring. If the client does not keep them apprised of material changes to their business activities, it could potentially invalidate their insurance or have a claim denied. This is true for all insurance but specifically for Professional Indemnity, Directors and Officers liability and Media/IP insurance cover.”

If nothing else, maybe those giving advice on NFTs ought to double check their terms of engagement with their customers or, in any event, keep their insurers up to date with which activities they are engaged - just in case they need to make a claim on their PI or DOL insurance.