Types of Digital Assets
The umbrella term for all assets on IOTA is digital assets.
These assets may exist on Layer 1 (the IOTA mainnet, as customized IOTA tokens), or on Layer 2 (within smart contract chains). To differentiate these asset classes we use two different names:
- Layer 1 assets are termed native assets, as they are native to the IOTA mainnet.
- Layer 2 assets are termed smart assets, as these exist on the smart contract layer, and have greater programmability.
The process of creating either type of digital asset is known as minting.
Notes:\ The terms asset and token may be used interchangeably (i.e. native asset, native token, smart asset, smart token). For example, if you are referring to a piece of artwork, you would probably call it an asset, but if you are referring to WenCoin, you would probably call it a token.