Fake invoices are becoming increasingly difficult to spot. The recipient of the invoice remains responsible for checking and processing. Performing this task accurately involves a lot of verification work, despite the high degree of automation. Using NFT invoicing, invoice senders place an invoice on the blockchain, meaning the sender or recipient cannot change it. Recipients can automatically validate incoming invoices based on their blockchain-based counterpart, the NFT invoice.
Read more about NFT invoicing below or have a look at this quick explainer video:
NFT invoicing is a blockchain based technology, allowing businesses to create NFTs (Non-Fungible Tokens) out of invoices. This means that a digital version of the invoice is encrypted and stored on the blockchain. The NFT invoice serves as an immutable backup of the digital invoice and a single source of truth between two trading parties. This single source of truth enables a higher degree of automation, seamless records and full ownership of your administration.
NFT invoices provide the procurement function with a readily available database independent from third parties, with no single central control of information. Neither mintBlue, your accounting software or your counterparty are needed in the process to retrieve or verify digital NFT invoices. As a result, companies can trustlessly validate within seconds whether an invoice is authentic. The NFT invoicing protocol allows your company to own your financial documents.
In today's digital world, CEO and invoice fraud are common. Most software can already automate invoice processing to a large extent, but automation is not necessarily safe and dependence on third parties is a potential weakness. Since NFT invoicing uses a public blockchain, secured by encryption and cryptographic signatures, there is no third party dependence. The recipient can be sure the NFT invoice hasn't been modified and is created by the expected sender. The blockchain is always available and verification can be done on the client-side.
Physical invoices rely on OCR techniques and other algorithms to make physical invoices digital. In this process information is lost and interpretation errors can be made. With NFT invoicing, paper receipts and invoices can be inherently linked to their digital counterpart by using a QR code. The QR code contains a reference to the NFT invoice on the blockchain. The physical invoice can therefore be processed securely via the blockchain.