Digital Entity

Definition ∞ A digital entity refers to any person, organization, or autonomous agent that exists and operates primarily within digital environments. This broad term encompasses a range of participants, from individual users with digital identities to automated smart contracts or decentralized autonomous organizations. Such entities derive their existence and functionality from digital infrastructure and protocols. Their actions and interactions are typically recorded on distributed ledgers.
Context ∞ The concept of a digital entity is increasingly relevant in crypto news as the digital asset space matures, particularly concerning digital identity, data ownership, and the legal recognition of decentralized organizations. Discussions often center on how these entities interact with regulatory frameworks and traditional legal systems. The ongoing development of metaverse platforms and Web3 applications further expands the scope and importance of understanding these digital participants.