When the digital revolution launched, several physical goods like text files, music files, books, and many more were converted into digital goods. Content creation has been simplified so that anyone who owns a digital device can be able to create their content. Documents in the Financial Supply Chain come with digital representation in today`s world. All documents like invoices, purchase orders originate from the digital financial system and are processed in different systems separating each data set. The Ethereum ecosystem is used to convert financial documents into NFTs. The goal of this process is to convert these financial documents to first-class blockchain assets.
This transformation makes it possible to interact, process, and the representation of these documents. Because of the blockchain implementation, documents can be tracked and assigned and retrieve a single source concerning the originality and history of the documents. Tokenized business assets are termed Business NFTs, while ‘Invoice NFT’ relates to specific documents like purchase orders, invoices, and many more.
Creating an NFT Document
The first step is to create a datum (this is the thing that is attached to the smart contract). The process of creating a datum is to take a content piece and derive an identifier that is unique for that specific content. This produces a CID (defined as the content identifier). The unique content created can also be encoded and distributed permanently. It is distributed to all the participants included in the exchange levels.
The other way of extracting NFT content is by generating a CID that works for both the description and the content itself. In this way, abstraction is created between the hosting place, the content, the blockchain, and the smart contract. If any changes occur, they can easily be detected by the unique hashes created by this method.
Benefits of Business NFTs
Since NFTs have generated a vast amount of attention from the entertainment and art world, NFTs are also being used in real-world businesses ranging from licensing, supply chain management to real estate.
- Since Business NFTs contain different codes and unique sets of information, they are used to tokenize documents such as medical records, birth and death certificates, certificates, licenses, etc. this type of identity can be obtained directly from the blockchain as an NFT. This type of Business NFT can be easily traced back to the owner. These types of Business NFTs help users to digitally store and protect their documents from theft. These can be personal files, personal addresses, or medical histories. In the future, these types of Business NFTs can be used to protect drivers` licenses and passports from forgeries.
- The introduction of a blockchain domain system enabled users to use private keys in controlling their domains. Blockchain domain names cannot be tampered with by 3rd parties since they are permanently recorded in a public registry. These blockchain domains promote easy trading and an easy process of customizing domain names.