The recent $69 million auction of a digital file by artist Beeple raised a lot of eyebrows. It also introduced a new term into the popular lexicon: non-fungible tokens, or NFTs. As NFTs disrupt the staid art market, it’s worth considering implications for other sectors.
By way of introduction, NFTs are exchanged on blockchains, which makes them highly secure and transparent. Bitcoin, a cryptocurrency, is also exchanged on a blockchain but is a fungible token, like physical currency. The auction of Beeple’s NFT revealed that the blockchain doesn’t have to just be about Bitcoin anymore. While in Beeple's case, NFTs are unique digital art works, they can also represent ownership of a physical or impermanent object. If we reduce NFTs to their essence—a “tokenized” item of value exchanged on a blockchain—we open the door to endless potential use cases.
In particular, NFTs can be used to modernize another staid industry, federal acquisition—in particular, the always-vexing Contractor Performance Assessment Reporting System, or CPARS.
From CPARS to Tokenized Performance Ratings
CPARS is the system used in federal acquisition to collect agency appraisals of contractor performance. We now know, however, that CPARS struggles to record performance information in a transparent, t ..
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