Chief Futurist Futuracy
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What Are Non-Fungible Tokens (NFTs)?

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Increasingly, it's crucial for accounting professionals to be at least somewhat familiar with blockchain, cryptocurrency and other forms of future-focused technology that are quickly changing the way the world does business. If you're ready to take your knowledge a step further, Ian Khan, founder and CEO of Futuracy, encourages you to learn about non-fungible tokens, or NFTs, which are based on blockchain technology. 

Jul 22nd 2021
Chief Futurist Futuracy
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Imagine I asked you to buy a digital copy of a painting I created and then burned. Perhaps you would be interested in my singing abilities and would buy a sound clip that I would record and put up for sale for a few hundred dollars. If you purchased any of these through an NFT exchange, you are now an NFT Investor.

NFT, or Non-Fungible Token, is something that I expect accountants to jump on and understand without being asked. You see, I really believe accounting and finance professionals have a deep understanding of financial data, taxes, audit and money matters, and there is nobody who can understand this better than them (well, you). Let’s dig further.

The current trend of NFT-based assets is interesting, and I say that because it's very confusing. By default, I believe that confusing things are interesting, but maybe that’s just me. NFTs are based on blockchain technology and are connected to the physical world through blockchains. Blockchain is the technology that provides a new way of storing information, creating distributed databases that are immutable, permanent and incorruptible. Having said that, if you put inaccurate data into blockchain, it will always stay that way, so let’s not confuse accuracy with a permanent record. The digital universe has moved ahead and while we are still trying to understand the cloud, analytics and other basic ideas within the industry, the rise of NFTs also signifies the emergence of blockchain as a value creator.

Today, NFT-based art is fast gaining popularity. Here’s how it works.

NFT marketplaces offer the ability to create a non-fungible, tokenized version of anything. A photo of something is a good example. You could create a painting or take a picture or maybe have a digital piece of art (that was created digitally in the first place). This art can then be sold on the NFT marketplaces as a unique item. Every time you sell a piece of your art, it will be paired up with and tagged with a unique entry on a blockchain, generating a unique digital string that can never be duplicated. This unique string can then be traded for cryptocurrency, and NFTs are born.

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