Aim to help information professionals understand the foundational concepts of this technology and how these are related to libraries so that they can evolve services alongside it. This column will define what a non-fungible tokens (NFT) is, explore the relevant trends impacting its development and examine how it intersects with the traditional roles of the library. NFTs represent a new and growing technology that intersects with many of the same concepts that are core to librarianship. Libraries are community institutions that engender widespread trust, whereas NFTs are built atop cryptocurrency that seeks to enable anonymous peer-to-peer interactions.

1. NFT- Non- Fungible Tokens and Libraries
Abstract
Aim to help information professionals understand the foundational concepts of this
technology and how these are related to libraries so that they can evolve services
alongside it.
This column will define what a non-fungible tokens (NFT) is, explore the relevant
trends impacting its development and examine how it intersects with the traditional
roles of the library. NFTs represent a new and growing technology that intersects
with many of the same concepts that are core to librarianship. Libraries are
community institutions that engender widespread trust, whereas NFTs are built
atop cryptocurrency that seeks to enable anonymous peer-to-peer interactions.
Introduction:
Design/Approach:
● Librarianship is replete with acronyms. But here’s one that may be new to
you: NFT. It stands for non-fungible tokens, which Investopedia defines as
“cryptographic assets on blockchain with unique identification codes and
metadata that distinguish them from each other”. Blockchain technology
bears enormous implications for libraries and publishers, and the recent
proliferation of NFTs introduces further opportunities for institutions eager

2. to progress beyond legacy systems. Libraries are uniquely positioned
.
● NFTs can be used to commodify digital creations, such as digital art, video
game items, and music files. Access to any copy of the original file,
however, is not restricted to the owner of the token. The speculative market
for NFTs soared in early 2021 when the same investors who had speculated
on cryptocurrencies traded NFTs at greatly increasing volumes. NFTs
mostly run on a proof-of-work blockchain, which is less energy efficient
than a proof-of-stake blockchain, which has resulted in some criticism of the
carbon footprint for NFT transactions.
Digital Assets/ Libraries:
● NFTs function as unique digital assets. They cannot be interchanged for
other assets, unlike a $5 bill that can be exchanged for five $1 bills, and their
transactions are recorded, tracked, and maintained on a decentralized ledger
for their entire life span.
● Most people associate blockchain technology with cryptocurrencies such as
Bitcoin and Ethereum, but as NFTs show, financial transactions are a mere
shadow of the cumulative appeal of blockchain. Bitcoin, or any other form
of money, is a great example of a fungible asset. Non-fungible assets
represent differentiation while maintaining many of the advantages of

3. decentralization. As the BBC writes, “NFTs are ‘one-of-a-kind’ assets in the
digital world that can be bought and sold like any other piece of property,
but they have no tangible form of their own” (“What Are NFTs and Why
Are Some Worth Millions
● Notable organizations, from the NBA to IBM, share the same space with
independent creatives like the artist Beeple, who recently turned heads with
the $69 million sale of his work at a Christie’s auction as a NFT. The current
“bubble-ish” nature of NFTs is cause for concern among investors and those
looking to flip digital real estate for profit. However, public institutions
should not be so fast to dismiss the space, as its potential for enhanced
programming, community engagement, and innovative publication models is
only beginning.
● Even ALA has taken notice of the potential of blockchain technology and
NFTs. On its Library of the Future site, ALA says, “Blockchain technology
has been proposed as a means of improving digital badges, facilitating the
transfer, authority, and reputation of awarded badges and other digital
credentials. As blockchain facilitates more secure and trusted certification,
its use could expand across formal and informal learning that happens in
academic, public, school, and special libraries”.
Library Implications:
● Blockchain and decentralized protocols are slinking their way into library
systems. Because decentralized records allow for instant verification, open
datasets, and frictionless collaborations, many libraries are investigating
blockchain tools to streamline their day-to-day processes. One relevant
example is the concept of a decentralized library card, which can
authenticate a user across a consortium or multiple library systems. Such
models allow patrons to enjoy the full benefits of their library card without
being bound by geography. Additionally, a decentralized library system is
better equipped to serve portions of the population facing homelessness or
displacement.
● Blockchain speculation in the world of libraries is all well and good, but
how will NFTs play a role in the domain? For one, libraries taking

4. advantage of non-fungible assets will have a new way to host and present
their collections. Unique pieces of local history, online journals, and patron
collaborations all benefit from tokenization.
● Furthermore, a library with a knack for online programming can use NFTs to
unlock exclusive content for visitors. Donors can ditch check writing and
place a bid on one of the items up for sale in their library’s NFT auction. As
more platforms continue to grow, minting (the process of creating an NFT
and hosting it online) and putting it up for auction may soon become
standard practice for library boards seeking to merge fundraising events with
memorable community outreach programs.
Conclusion:
Librarians, and decision makers should continue to monitor blockchain technology
and NFTs as the space grows. While unlikely that the current format of this
exciting new frontier will remain as it is, it presents some undeniable advantages
for anyone working in information services. Whether you look at access,
preservation, intellectual freedom, education and lifelong learning, or other
metrics, it is hard to deny blockchain’s role in the library. Using new technologies
like non-fungible assets, libraries and publishers can continue to honor the tenets
that uphold their institutions and serve their users across time.