NFTs are the future of leveraging your business. Learn how these blockchain-based tokens can add value to your brand, and how automated crypto tools can help manage them.
NFTs now play an indisputably significant role in the world of financial tech and digital currency, with a growing number of businesses and individuals integrating them into their assembly of non-monetary assets. However, those in financial industries still find it difficult to grapple with exactly how to eliminate the time and energy associated with not only understanding NFTs, but also how to integrate them into their transaction reporting and taxing process.
What are NFTs?
An acronym for non-fungible tokens, NFTs represent intangible assets that can be digitally owned and purchased. Examples of popular forms of NFTs are digital art, GIFs, music, videos and even tweets. Similar to that of a collector’s item, the value of a NFT derives from its proof of ownership of the original product.
While things on the internet can be easily replicated and distributed, every NFT is embedded with a unique coding stored on the blockchain that identifies it as the original copy and warrants you as the ‘authentic owner’. Each NFT purchase becomes exclusively yours, inherently raising the value of the digital asset due to its one-of-a-kind nature – a symbol of authentication.
For forward-thinking businesses, NFTs have yielded an opportunity to strengthen their digital marketing and client relationships. Obtaining sentimental NFTs with high value not only creates demand, but also a source that drives brand engagement, consumer interaction and experience, and incentivises brand loyalty.
NFTs are valuable non-monetary assets for businesses
The increasing popularity of NFTs signals its repute as a meritable non-monetary asset to have, particularly as a contemporary means of marketing your businesses. While the technology is still quite new, the possibilities of using NFTs in helping your business grow are endless.
Other than being a source of passive income, a few ways NFTs can be strategically utilised for your business include being a type of gift for rewarding clients; raising money for greater causes via auctions and sales; creating communities by giving access to a body of tokens; and building brand awareness through NFT-centred campaigns.
With the limitless potential of NFTs in the business world, now is the time to start leveraging NFTs as innovative marketing tactics for your company.
Simplify the transaction process for NFTs
If you are one of the people who struggle to understand the intricacies associated with NFTs but want to invest in them for your company, we have some good news for you: obtaining a grasp on NFTs as digital assets to accompany your online wallet is not as hard as it seems.
Foremost, due to the fact that the majority of NFTs are held on the Ethereum blockchain, transaction processes for NFTs are primarily based on Ethereum. This means that settlement is usually done utilising Ethereum tokens, although it's still possible to use other blockchain-based currencies. While NFTs are a non-monetary asset, they are still handled with cryptocurrency.
Comparing this to FIAT transactions, while the value of FIAT currency remains stable and fungible, the volatility of digital currency means that there is no set price for NFTs, or that the value may change and is non-fungible. This aspect of dealing with NFTs emphasises the transaction recording process as even more imperative, and ensuring that your finances are accounted for should be a priority. This can be easily done with our crypto data automation software AEM Journaler, which streamlines the process of all crypto transaction reporting. With Journaler, you can easily add and track blockchain wallets, simplifying how you view your wallet balances and transactions for NFTs.
Additionally, settlement for NFTs is done via cryptocurrency. Unlike stock trading, there is no set break, therefore, a time must be established to settle for NFTs. Journaler simplifies the settlement process by keeping record of every purchase made through blockchain. NFT ownership can be easily verified and recorded via Journaler’s automated transaction reporting system so you can review past purchases and their volatile value.
For accountants, reviewing all transaction reports in various blockchain wallets is an essential duty but can be time consuming if managed manually. Integrating crypto data automation tools like Journaler expedites this process for seamless viewing and organised records.
The future of NFTs and data management