What is digital scarcity?
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Digital scarcity refers to the concept of creating uniqueness and limited availability in the digital world, which historically has been characterized by abundance and easy replication. This idea is particularly relevant in the context of blockchain technology and cryptocurrencies.
explains that digital scarcity allows for items that can't be duplicated easily, unlike traditional digital files that can be copied infinitely. This is achieved using technologies like cryptographic principles and blockchain to ensure that certain digital assets are unique or limited in number. For instance, if someone owns a specific Bitcoin or NFT (Non-Fungible Token), no one else can own that exact same one 1 2.
This concept is crucial for digital ownership, where digital private keys enable individuals to establish their ownership securely without intermediaries. This system aligns the digital world with the real world's economic principles of scarcity, where resources are limited and valuable 3.
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