NFT In Real Estate Industry – Are Trophy Property Ownerships In Vogue?

 NFT In Real Estate Industry  – Are Trophy Property Ownerships In Vogue?

NFT In Real Estate Industry

If the question “which is the safest form of investment?“ were to be asked sometime in the 1950s and sometime yesterday, a sure answer for both of these questions would be real estate. People in real estate marketing have gone ahead and created the tagline “The safest investment on earth… is the earth itself!”

The concept of real estate investment, however, is a little bit different than gold or any other physical/tangible is it that you can hold in your hand. The proof of your investment lies in the document. In other words, it is the record of you having spent the money to authorize your ownership of the piece of property which is counted as the representation of your investment.

Records, for a considerable stretch of time in history, have been physical. However, with the digitization in place, records became digital and easily transferable. The catch, however, was that there were some loopholes in terms of security.

These shortcomings were adequately addressed by the blockchain technology which is, in essence, a completely digital, decentralized, immutable, and secure ledger.

Cryptocurrency is one of the most prominent manifestations of this technology besides it’s widespread applications in the field of finance.

One of the latest elements of this technology that has been gaining worldwide attention is non-fungible tokens. Non-fungible tokens or NFTs as they are irreplaceable tokens unique and rare that exist on the blockchain.

In most cases, they represent unique art and sometimes, they also represent some form of a digital collectible like music or the first tweet or certain moments from a game. Drawing parallels with this concept and real estate, it opens up possibilities for virtual ownership. This has given rise to virtual real estate.

What Is Virtual Real Estate?

Virtual real estate is a property in a virtual world that can be bought using real money. On the surface, this might seem like an absurd idea but people have always wanted to exercise ownership and control over some coveted properties in the real world, and the best they can do is have an equivalent of it in the digital world.

This is the world of real estate non-fungible tokens. Just like pieces of art, even a real estate property with its attributes is quite unique. It cannot replicated and having ownership over certain landmarks does present a sense of pride and prestige. These places might not be available for ownership in the real world, but virtual real estate is picking up, covered by the blockchain and NFTs.

Some Examples For NFT In Real Estate industry

Seattle is an augmented virtual world that houses virtual real estate properties. The company has sold thousands of properties averaging at around $2000 per property. Seattle is properly mapped to the real world and it covers the entire surface of the earth. It is divided into 64 billion plots of equal sizes which are, in most cases, 100 m x 100 m. 

In Seattle, it is quite possible that a person can own some globally renowned landmarks like the Eiffel Tower, the Empire State building, the pyramids of Egypt, and the Piccadilly Circus. They can also purchase some coveted properties like the Mayfair and lower Manhattan.

Some of them have gone ahead and purchased their childhood homes or their ancestor properties. It hinting that nostalgia plays a role in influencing the purchase of properties on virtual real estate.

NFT In Real Estate industry – The Other Aspects

NFTs and real estate have been exploring a lot of avenues. Since everything is almost unlimited in a virtual world, and the uniqueness can also be retained, the possibilities are infinite. Proponents of the new technology and the NFT world are in an attempt to create a completely virtual experience. It will reflect all the aspects of the real world.

The first NFT digital house in the world sold for a staggering sum of $505,000. The Mars house designed on the iPad, and the creator has described it as a digital Zen garden. There have even been instances where people have bought pieces of virtual land on the moon. Elevating the NFT experience in real estate to the next level, a southern California investor has attempted to auction an actual home in the Thousand Oaks area of California. This also comes along with the purchase of an NFT artwork.

The Possible Setbacks

It is not all about being a bed of roses for NFTs and real estate. It has its own series of setbacks. For example, the server that holds all the NFTs might deleted because of a breach of security. This would mean that people who invested on the NFT would left with a blockchain link that points to nowhere.

There have been a lot of attempts from all dimensions to address shortcomings. With every growing day, it is quite possible that these shortcomings will effectively addressed. Moreover NFT real estate will become mainstream and a part of reality.

Legal System

The legal system also needs to catch up. While most NFT platforms have a facility to entitle the NFT Holder to royalty payments, the United States legal system does not recognize resale rates, especially with regards to art and other creative work. Such is the case with 70% of the jurisdictions in Europe.

We are not even looking at some of the less progressive jurisdictions with huge populations and real estate potential like China and India. It would take time before the system becomes full proof and the entire legal framework grows to accommodate NFTs, blockchain, and all the manifestations.

Conclusion

To Conclude, There is no denial on the fact that the blockchain technology, NFTs, and its impact on real estate will be widespread. However, before that time reaches, it is quite possible that the early bird would have capitalized on this nascent wave of the blockchain revolution in the world of real estate.

If you would like to be one of those aspiring crypto entrepreneurs who would like to be the first to jump into this bandwagon, you will need to approach a company that knows the impact of NFT in the real estate industry. They will take care to understand your potential.They also prepare a perfect solution for you to launch your brand into the NFT real estate space.

isacharlotte

Related post