Terms and Definitions in the Bitbon System
Social Network

Digital asset derivativeness

Digital asset derivativeness is a legal relationship between the initial asset[i] and the original asset[i] for a digital asset[i], which is established automatically at the time of the digital asset creation and is dynamically tracked through circulation[i] of units of this digital asset in the Bitbon System[i].

Additional comment:

Legal relationship means a complex dynamic agreement comprising a number of contracts, deals[i], terms and conditions laid down in the information resource[i] as the original asset for a digital asset as well as actions with property as the initial asset for a digital asset. Actions with property are carried out upon the occurrence of conditions envisaged by contracts and deals as components of the complex agreement. Such actions are recorded in the distributed ledger[i] and are a prerequisite (cause) for carrying out certain actions until this agreement is terminated due to the fulfillment of its terms and conditions.

Moreover, some deals and contracts are executed automatically according to the established terms and conditions. All events related to deals and contracts are recorded through transactions with distributed ledger token[i] units as a technological component of the digital asset, which correlates with an information and applied component.

Some digital assets of Bitbon System Users[i] may be based on a simple agreement rather than a complex one, for example, in the form of a deal with the purchase and sale of products or services.