What is NFT (Non-Fungible Token)?

NFT stands for Non-Fungible Token or non-fungible token. To know what NFT is, we must consider what passes are. A permit is a cryptographically based unit of value issued by a private entity on a ‘blockchain’. For example, cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) are tokens. We will tell you more in detail, and we will also remember what expendable and non-expendable goods are.

Expendable goods can be exchanged, having a value based on their characteristics, and non-expendable goods cannot be substituted. For example, a painting or a sculpture would be a non-expendable good since another image cannot replace it because one work of art is not equivalent to another.

These digital assets can be any digital content and allow anyone to own a “digital good” for sale, be it an image, graphic, text, video, song, or even a tweet. As we mentioned at the beginning, the founder of Twitter, Jack Dorsey, celebrated the 15th anniversary of the social network with the auction of his first tweet from 2006.

And where do you keep this non-fungible token that you have bought? Just like cryptocurrencies on a blockchain. Ethereum is currently the leading blockchain service for issuing NFTs, so most transactions are done with ether, the Ethereum cryptocurrency. This means that to buy NFTs, you must first accept the cryptocurrency.

It is important not to confuse the functionality of NFTs with that of cryptocurrencies since they are opposite goods even though they use identical blockchains. A cryptocurrency is a fungible good and an NFT a non-fungible one, as the value of cryptocurrencies rises or falls with supply and demand and non-fungible tokens do not.

The New Revolution In Digital Art.

Thanks to NFTs, the authenticity of digital art is protected, and the copyright of digital works. In this way, it is not so easy to duplicate digital files since, thanks to blockchain technology, it is possible to verify the originality and ownership of the work.

The most popular NFT transactions are in the form of “crypto art”, a new way of collecting digital works of art. The first work sold that started the NFT phenomenon was the JPG file “The First 5,000 Days’ ‘, created by the artist Beeple. It was sold for 69.3 million dollars on March 11, 2021, so on this date, we celebrate the first anniversary of NFTs.

Collecting has been the first market added to the NFT, and it is that buying a work of art or collectible object entails a privilege, which is to own a piece that has been declared unique. Nobody else can have it, and now, for the first time, blockchain technology allows this.

NFT And Video Games.

In defining what an NFT is, it isn’t easy to cover all the types of digital assets. The number of non-fungible tokens out there is incalculable as it is continually increasing. We have mentioned NFTs for digital art and collecting, but an NFT can also be a unique contract between an employee and the company, known as “smart contracts”.

Another relationship with NFTs in the metaverse is now being talked about so much in the media since Mark Zuckerberg’s company name changed to “Meta.” NFTs and the metaverse are interconnected, especially in crypto games. NFT or “play-to-earn” video games are games in which some of their parts are NFT. Non-fungible game tokens can be a character, weapons, housing, vehicles, etc.

The exciting thing is that the purchase of NFTs within the game is made through the game’s cryptocurrency, so the more popular the video game is, the more users will play it and buy NFTs, so the value of the currency will rise. In this way, you can also earn money with NFT games. By overcoming specific missions, defeating enemies or fulfilling requirements, you can make the game’s cryptocurrencies, which you can exchange for real money.

Also Read: Facebook And Instagram About To Create A Marketplace For NFTs

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Basic Principles Of BIM

If we have to translate Building Information Modeling, we then speak of general building information modeling or infrastructure. The precise definition of BIM is still subject to much discussion. Nevertheless, we can say that it is a compilation of several types of working methods aimed at processing data to transform them into models, especially in 3D. BIM also makes it possible to continuously collect information on construction, from its design to its demolition. Thus, creating BIM models consists of generating 3D models of infrastructures according to their physical characteristics and functional ones.

BIM is, therefore, not just any software or technology. Indeed, we are talking more about a whole set of technical tools revolutionizing the way construction work is carried out today. And the use of 3D models according to intelligent and organized parameters makes it possible to carry out various in-depth studies. Construction experts will run simulations to anticipate various aspects of construction (energy consumption, compliance with standards, detection of problems, etc.). BIM also serves as a communication tool between the various actors who will intervene on a construction site. Technological innovations in the building sector provide access to many advantages for professionals. BIM is one of them, and its use is increasingly recommended.

The Benefits Of Using BIM

According to BIM’s different characteristics and roles, it is an extremely beneficial technology for the construction sector. All the know-how of the various trades intervenes on a construction site that will be optimized. Indeed, the collection of data by BIM allows architects to be more precise and owners to be more efficient. The fact of carrying out expert surveys by 3D laser scanning also provides more relevant information to detect areas for improvement fairly early on. What then limits the losses (in time and money) which would generate the late modifications on the building site.

Thanks to BIM, more precisely to modeling or digital prototyping, it will be possible to detect any flaws in a building even before it is built. Moreover, as mentioned previously, the analysis carried out through Building Information Modeling makes it possible to construct more energy-efficient buildings. It is, therefore, the comfort of future occupants that also greatly depends on it. So many advantages that should not be overlooked. To have access to it, it is possible to use a bim design office specially equipped and have the necessary know-how to bring this tool to its site.

Also Read: Real Estate Technology -Present And Future Technologies In This Sector

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Digital Transformation

We could define the concept of digital transformation, or DX, as a continuous process that allows organizations to adapt to disruptive changes in all aspects of their business activity – and to lead them – through the application of digital skills to create new business models, products and services.

Digital transformation enables organizations to seamlessly blend digital and physical customer experiences while improving operational efficiency and performance. In this context, digital is not a concept that you apply to business, but rather it is what you transform yourself into.

The great challenge for companies lies in the transformation of their business models and their ability to connect with a customer that operates in a global economy with which they are genuinely connected. The most significant difficulties they will face are:

• The appearance of new risks: it is no longer enough to do things well. You have to do them better than the competition. 
• The need to consider a new investment cycle in high-tech products and strategic repositioning platforms.
• The acceleration of the global economy and the widening of the gap between winners and losers due to the new investment cycle.
• The existence of companies that already invest in advanced tools, new modes of transport, digital delivery of goods and services, and the automation of the last mile of distribution.

As a counterpart to the risks, there are also many possibilities offered by incorporating digitization into traditional businesses. 

• Be faster and more flexible with lower costs, breaking the traditional principle that speed and product customization are accompanied by an increase in total costs per unit. Digitization breaks this principle and offers us everyday examples of new companies that personalize and improve products and services while reducing their cost.
• It was breaking, in many sectors, with the need to work with long series to obtain economies of scale. Digitization allows short and personalized series without cost increases.
• Reduce dependence in terms of production of the countries of the Asian area thanks to the decrease in the relative weight of labour in production costs. 
• To collaborate in the same project with human teams scattered all over the world, making the most of the potential of different knowledge clusters.
• Expand the perspective of new business models in which to capitalize on the experience acquired in traditional businesses. Digitization transforms all sectors and all stages of the production process. A clear example of this is online sales, which is disrupting traditional distribution channels in all areas in a way that is as growing as it is unstoppable, to the extent that its use is supported by the younger population, who lives with the new ones. 

The Digital Transformation In The Financial Statements Of Companies

In the context of globalization, product customization and digitization that we have described, all the changes produced will be reflected in the companies’ financial statements, showing the skills, knowledge, experience and capabilities of the directive teams for management and management.  In this way, liquidity management takes on particular relevance because it has become a strategic element for the growth of companies due to its ability to help acquire and develop skills and abilities that allow them to renew product portfolios. And services with which to satisfy the new needs of their markets.

And it is that one of the keys of the process is in the vertigo speed in which events occur, technologies change, customer needs, communication channels, and, ultimately, new business models that make the traditional ones obsolete. The ability to obtain liquidity at a specific and key moment allows access to technology, technical and human capacities and the necessary investments that will enable us to adapt to new business models. On the contrary, keeping our resources immobilized in non-strategic investments, with long recovery periods, not quickly settled or only recoverable based on bearing severe losses that will weigh down the income statement for several years to come limits our liquid funds and represents a significant risk that could call into question the survival of the business.

Operating cash flows are indeed the primary source of liquid resources for the company. It is also important that they condition the availability of external financing by determining our ability to repay the credits together with the cost of their use. However, when there is an increase in investment needs, the operating cash flows are usually not sufficient to cover them in their entirety. That is when the company’s liquid reserves come into play and, above all, its borrowing capacity.

As we have seen, this borrowing capacity can be limited by maintaining unproductive or non-strategic investments for the new business model. Still, poor management of working capital can also drain resources, limiting investment capacity. We have some key indicators that will allow us an early diagnosis of this problem, which should be present in the management controls. We refer to the operational needs of funds (NOF) as an essential element in analyzing the working capital.

We could define the NOF as the financing needs that are revealed due to the need to have working capital to develop the productive activity limiting the operational risks. In this way, we must maintain minimum stocks that guarantee the security of supply and the production and sales cycles. We must also maintain an outstanding balance due from clients due to average commercial credit in the market in which we operate. Therefore, NOFs will increase with the simple growth of productive activity so that, if not managed properly, they could cause a bottleneck in the cash circuits. 

Adequate management should include the periodic control of the balances of the active accounts so that their reasonableness and adaptation to the company’s policy can be verified and avoid situations of risk of potential losses.  Thanks to this control system, we will be able to detect situations that could be limiting our financing capacity: excess stocks in warehouses, which could show obsolete material, in poor condition or excessive quantities; balances in customer accounts that hide delinquency situations or show management problems in portfolios (errors in invoices, delays in deliveries, etc.).

In conclusion, we want to point out that proper treasury management can give us significant competitive advantages to adapt the business model to market conditions and competitiveness. The speed of the changes produced does not usually grant alternatives to a business opportunity, nor does it usually wait for us to have the necessary financing. This forces us to select those truly strategic investments and control their payback period, as well as control investments in working capital so that they do not immobilize necessary resources.

Also Read: The Four Trends Of The Digital Acceleration Of SMEs

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