> For the complete documentation index, see [llms.txt](https://the-other-fruit.gitbook.io/theotherfruit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://the-other-fruit.gitbook.io/theotherfruit/dfa.md).

# DFA

Going beyond the Non-Fungible Token (NFT)

### Evolving NFT into DFA \[Digital/Distributed-ledger Fungible Asset] 

NFTs are just first generation. Right now, with an NFT, there is no easy way to definitely claim ownership – meaning you can copy an image and claim it. This defeats the purpose of a DLT solution. If there is no ownership control, as with the typical NFT, there is no ‘excludable’ characteristic. Meaning for true control, an owner needs to be able to both decide how that element is used as well as what, when or how it is sold. 

With NEST® data can be certified at source and easily transferred using an inverted token and exchange, controlled through blockchain. NEST® is a secure and private digital data wallet used for asset exchange, commerce, immutable registrations and so on. This true, dynamic control is what facilitates the transition into DFA categorization.

With the DFA, NEST® is extending the concept of ‘crypto asset’ to all digital files, content, data and activities. This is to firstly address the chaos being created by bad players in the NFT market. Through NEST®, NFTs are now kept encrypted, stored with secured metadata in our DLT as well as cross-network solution. No longer will bad actors be able to download your original NFT and claim it as their own. NEST® adds true provenance and audit trails, in legal contractual exchange, to controlled sales. This smart to real-world contract, developed back-end coding and structure, is also unique.

NEST® allows people to choose how they want to buy or sell, what rules and terms each will set, and which platforms they want to communicate and exchange with. NEST® has created a single solution to the unmanageable chaos of the current NFT and unencrypted or centralized blockchain worlds. It is really a unique combination of solutions that everyone is looking for but none seems to have come up with yet, because they are not approaching the question from the right angle. It must be encrypted, private direct control with public verifiability or authentication of transactions plus encrypted assets in exchange.

### NFT \_ *OLD NEWS* 

**1 *****\_***** Non-interoperable:** A CryptoPunk cannot be used as a character in the CryptoKitties game. 

**2 \_ Indivisible*****:** NFTs cannot be divided into smaller denominations. They exist exclusively as a whole item.* 

***3 \_***** Indestructible:** Because NFT data is stored in blockchain using smart contracts, these tokens cannot (easily) be destroyed, removed or replicated. The meta-data container, in most cases, is locked in-chain or on-chain. 

**4\_ Verifiable:** Storing historical ownership registration data on the blockchain allows for some tracing, yet does not inherently meet authenticated standards of third-party verification. Entry existence with time-stamps are set.

### DFA \_ *NEXT-GENERATION* NEST® LEVEL 

**Interoperable** \_ *Smart data assets are controller-specific; functionality can be altered through its property of being ‘programmable’.*

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**Divisible *****\_*** Assets can be fractionalized and/or re-sold. Creating a first of its kind honest, digital, asset liquidity. This type of transaction is atomic, meaning both sides of the exchange must complete set terms or triggers in order for it to process. This protects buyer(s) and seller(s). For example, a user can sell their DFA(a) to party A and DFA(b) to party B with no degradation or limitation to the underlying, authenticated asset integrity. 

**Indestructible** *\_ DFA (assets) are encrypted and stored in blockchain, and executed via varied smart contracts, meaning all exchanges cannot be destroyed, removed, or replicated. Privacy compliance is addressed by owner’s personal encryption during creation and division of entry for future public recall as well as a capacity to 'burn' their own records.*

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**Verifiable** *\_* Signature, asset and contract chains have owner's keys. Authentication is owner-specific, through blockchain, and does not require third-party validation. Authentic *Exchanges and activities contain unique encrypted data, rather than just an attached (possibly real-world anonymous) signature. This ensures ownership-control is authentic and based on verifiable identity credentials, which the user him or herself holds. This ownership-control simultaneously extends to the file/s (the digital asset in quest), rather than just a secondary or correlated token that may represent registration of an asset.* 

**Persistent**  *\_* This is user-held, not dependent on third party hosting. A prior owner cannot alter content or now set varied attributions. A seller cannot pull a 'bait and switch' or similar scam/s. The buyer, in a similar way for the valuation and settlement since the content of the file is under the control of the owner, has the RWSC® which itself only exists because of previously set real-world liquidity which has already been tangibly established. 

**Programmable** \_ *Contracts instruct the relevant asset to behave differently under different conditions. From usage access rights, direct party-to-party encryption as well as download access or appearances.* 

**Compliant** *\_* Compliance with regional laws cannot be omitted. By enabling private ownership control of AML/KYC or similar associated PII, the real-world contractual engagement using P2P plus cryptographically facilitated exchange present the solution which enables such direct and personally established compliance throughout varied exchange engagements. 

**Privately known, publicly verifiable**. Programmable metadata properties, hashed and/or at the machine level, set real-world triggers during contractual engagement. Such as transference of assets and all the way across to real-world valuations. P2P engagement is then legally compliant, DLT secured and direct. Company or host exposure or risk is mitigated to individual contractual engagement.

NEST® users control and access the above-mentioned features using personalized encryption. Each user has direct control over what information (data), is packaged into or set as their asset. These assets can be images (NFT), multimedia content such as videos (NFT), other bookings, ticketing or elements such as personal data like browser or shopping behavior (DFA). 

Where DFA or ‘smart data assets’ stand apart from NFT standards is through reinvention of the file itself, now as an encrypted and complete digital asset. Rather than having a somewhat static tokenized registration listing, the DFA is actual movement and control of the whole digital asset. Through distributed ledger packaged formatting and an interplay of encryption with encoding signatures, these DFA properties allow for full asset controls as well as immutable authenticated owner-controls. User-set movement or exchange now allows the DFA to be a dynamic element in real-world contractual engagement, which is further privately and directly executed between two (or more), protected parties across distributed ledger technologies.

The uniqueness of an NFT item is what gives it market value, it is only functioning ‘like an asset’. This uniqueness should be able to persist over time, so imparting a rival character wherein consumption of that ‘item’ by a consumer prevents simultaneous consumption by others. If there is no ownership control, as with the typical NFT, there is no ‘excludable’ characteristic. Meaning for true control, an owner needs to be able to both decide how that element is used as well as what, when or how it is sold. This control is the transition into the DFA categorization. 

NEST® acts purely as a data-custodian and digital service provider, never as an engagement participant. This is made possible by fractional segmentation and service-function distillation, through digital privatization and independent-role-based simplification in actionable transaction achievement. This is a privacy centric, user-led control of operational solutions with integrated, DLT enhanced, legal and fintech toolkits. DFA content, choice, control and exchange is user-set.