Research Library

What is a Digital Wallet?

Digital wallets like HUMBL Pay are mobile wallet applications that are being developed to house the following digital forms of money, currencies and payments:

- Mobile identification
- Fiat currencies (ex: USD)
- Stablecoins (ex: USDC)
- Digital assets (ex: Bitcoin, Ethereum, BLOCKS)
- Central Bank Digital Currencies (CBDC’s)

What is Fiat Currency?

A fiat currency is money that is not backed by a physical commodity like gold, but instead backed by the government that issued it. Most modern currencies, such as the U.S. dollar, euro, pound and yen, are fiat money.

“Fiat” means “an authoritative or arbitrary order.” So in the case of “fiat money,” it’s an order by the government that gives them value and makes them legal tender. The current fiat-money system came about during the 20th century when countries moved away from the gold standard, where currencies are directly linked to gold. There are currently some 180 fiat currencies in the world today.

The value of fiat currencies is driven by the marketplace forces of supply and demand. Central banks control the supply, gauging how much money is needed in the economy and printing accordingly. The biggest risk is that they print too much, triggering a bout of hyperinflation – rapid, out-of-control price increases that can lead to economic devastation.

Faith in a fiat currency hinges on the stability of the government that issues it, as well as trust in the central bank that manages its supply. (Source: SoFi)

What are Stablecoins?

A stablecoin is a blockchain-powered digital currency that combines the benefits of open, borderless cryptocurrency with the price stability of traditional fiat currencies. Stablecoins have gained traction as they attempt to offer the best of both worlds – the instant processing and security of cryptocurrencies – and the volatility-free stable valuations of fiat currencies. (Source: Circle)

What are Central Bank Digital Currencies?

The term central bank digital currency (CBDC) refers to the virtual form of a fiat currency. A CBDC is an electronic record or digital token of a country's official currency. As such, it is issued and regulated by the nation's monetary authority or central bank. As such, they are backed by the full faith and credit of the issuing government.

CBDCs can simplify the implementation of monetary and fiscal policy and promote financial inclusion in an economy by bringing the unbanked into the financial system. Because they are a centralized form of currency, they may erode the privacy of citizens. CBDCs are in various stages of development around the world. (Source: Investopedia)

What is Blockchain?

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. The timestamp proves that the transaction data existed when the block was published in order to get into its hash.

As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

A blockchain can therefore be categorized into two parts: the block and the chain, which are both interconnected. A block is a chunk of data that is linked to other blocks in a virtual chain by the order in which they were created.

Each block also carries a timestamp, which ensures that it is apparent when the data was captured and saved – something critical for things like transaction or supply chain data, where knowing when a payment or item was handled is critical to understanding the situation. (Sources: IBM, Wikipedia, BizSecure)

What is Blockchain Tokenization?

Generally speaking, a token is a representation of a particular asset or utility. Within the context of blockchain technology, tokenization is the process of converting something of value into a digital token that’s usable on a blockchain application. Assets tokenized on the blockchain come in two forms. They can represent tangible assets like gold, real estate, and art, or intangible assets like voting rights, ownership rights, or content licensing. Practically anything can be tokenized if it is considered an asset that can be owned and has value to someone, and can be incorporated into a larger asset market.

The concept of tokenization precedes blockchain technology. The financial services industry has implemented some form of tokenization to protect clients’ confidential information since the 1970s. This process has typically involved the conversion of sensitive information such as credit card numbers, social security numbers, and other personally identifiable information into a string of alphanumeric characters, which are then processed through a cryptographic function to create a unique token.

To some extent, this method bears some resemblance to the tokenization process enabled by blockchain technology. However, while past tokenization mechanisms were primarily designed to protect sensitive data, blockchain-enabled tokenization allows for a more secure yet flexible tokenization of assets that has significantly broadened the potential applications of digital tokens across a wide array of industries. (Source: Cryptopedia)

What is KYC / AML?

The Know Your Client or Know Your Customer (KYC) verification are a set of standards and requirements used in the investment and financial services industries to ensure they have sufficient information about their clients, their risk profiles, and financial position.

KYC in the banking sector involves bankers and advisors identifying their customers, beneficial owners of businesses, and the nature and purpose of customer relationships, as well as reviewing customer accounts for suspicious and illegal activity. Banks must also maintain and ensure the accuracy of customer accounts.

Requirements differ in different jurisdictions. However, account owners generally must provide a government-issued ID as proof of identity. Some institutions require two forms of ID, such as a driver's license, birth certificate, social security card, or passport. In addition to confirming identity, the address must be confirmed. This can be done with proof of ID or with an accompanying document confirming the address of the record. (Source: Investopedia)

What is a DAO?

A DAO is a Decentralized Autonomous Organization.  A DAO is a new type of structure that is operated by a series of smart contracts, streamlining and automating fully decentralized operations, to ensure longevity and maximum efficiency.

A DAO is a self-governing organization that is managed by rules encoded in computer programs called "smart contracts." The transaction history and programmed rules of a DAO are stored on a blockchain, which boosts the transparency and immutability of DAO.

While one person or entity must form the DAO, they do not retain sole control over the DAO. This means the DAO can run without a traditional business structure. All “members” of the DAO have a say in the actions of the organization. (Source: BLOCKS)

What is an NFT?

NFT Stands for Non-Fungible Token. Think of an NFT as a digital stamp of ownership used to confirm the authenticity of a unique item. At the moment that stamp is recorded (tokenized) on a secure public database (blockchain), the stamp becomes verified as one of a kind and cannot be modified or copied.

An item is fungible if it can easily be exchanged or substituted and maintain its same value. A dollar bill is an example of a fungible item because it can be replaced or exchanged for four quarters and still retain the exact same value. Other fungible items include:

- Gold
- Bitcoin or other crypto currencies
- Casino chips

An item is non-fungible if it cannot be substituted because it has unique qualities that make it different from other similar items. While many NFTs are digital, they can be used to verify the authenticity of real world items too. Examples include:

- Music
- Digital art
- Event tickets
- Photography
- Collectibles

It is publicly verifiable ownership that makes NFTs valuable, because it allows them to be easily and securely traded or sold and allows for a variety of additional uses like:

- Creator earnings
- Unlocks owner benefits like exclusive access to an event or experience
- Chain of custody verification, eliminating ticketing fraud

References and White Papers

White Papers

Below are some helpful links to white papers that have informed the development of some of the most notable blockchain projects from around the world.


The HUMBL Reference Library is a research compilation of a variety of resources and websites. It is not investment advice and should be considered nothing more than a helpful resource in your blockchain journey. Investing in stocks, NFTs and digital assets carries risk. You could lose your entire investment.