Demystifying the link between VDAs and blockchains

The true value of virtual digital assets (VDAs) lies in their fundamental role in the functioning of public blockchains, as they create incentives for nodes and other network participants to engage with the blockchain. Factors that determine the underlying value of VDAs include their core characteristics, demand, supply, network effects, and utility. Scarcity, fungibility, durability, portability, security, decentralization, and programmability are essential features that determine the value of a VDA. Additionally, the more developed the use cases and network effects of a particular blockchain, the more valuable its native token will be, prompting participants to bolster the robustness and value proposition of the blockchain.