NFTs are the hot ticket for the digitally-savvy investor. A Non-Fungible Token (NFT) is essentially a certificate of authenticity for a digital file, ensuring that the owner of the digital file possesses the genuine asset. The technology behind NFTs and their underlying blockchain systems may be confusing to the average layperson, but the concept of asset management, buying and selling, is something we can all understand.
NFTs hold the potential for leveraging the monetary value of almost any digital file, from artworks to archived documents. Digital assets, like physical assets, have value for any enterprise. Like physical assets, digital assets are managed and maintained for the benefit of the enterprise (digital asset management or DAM). NFTs intersect with DAM when the monetary value of a digital file is determined, and an NFT is issued for it.
Digital art has been prominently featured in the NFT market, but UC Berkeley recently sold an NFT of some digitized documents for $55,000. The university owned imaged files of some Nobel Prize-related research documents. An NFT was created of these imaged documents, and it was auctioned to the highest bidder. Berkeley received a lump sum, plus a 10% royalty of any subsequent sales of the NTF.
What does this mean for other organizations’ digital assets? Every business, non-profit, and governmental body has documents that could be valuable to collectors, historians, or researchers:
- Vintage logo artwork
- Historic contracts with signatures
- Founding documents
- Historic correspondence or writings
- Archived photographs of significant events
Selling NFTs of some of these digital assets could yield significant funds for an organization. Keep in mind that an NFT can be structured in many ways – a royalty structure such as UC Berkeley did, or perhaps an ownership reversion under certain conditions. And there can be multiple NFTs of a single digital document, under a limited-edition structure.
But before you can profit from the sale of your digital assets, your paper documents have to be converted to digital files. That’s where document digitization comes into play. A well-designed and professionally executed digitization program gives you all the benefits of document conversion – security, accessibility, reduced storage space – along with the potential for additional income. Image your documents, and mine the value of your digital assets.
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