Digital Twin

Definition ∞ A digital twin is a virtual representation of a physical object, system, or process, updated with real-time data. This virtual model mirrors the physical counterpart, allowing for simulations, performance monitoring, and predictive analysis without direct interaction with the actual entity. In contexts related to digital assets or supply chains, a digital twin can represent a physical asset on a blockchain, linking its real-world status to its digital record. This connection enables enhanced transparency, tracking, and management of physical goods within decentralized frameworks.
Context ∞ News often reports on digital twins in industrial applications, logistics, and increasingly, in the intersection with blockchain for asset tokenization and supply chain veracity. Debates sometimes involve the data privacy and security implications of linking extensive real-world data to digital models. Future developments aim to standardize protocols for digital twin creation and integration with decentralized ledgers, expanding their utility in verifying authenticity and optimizing operational efficiency across various sectors.