How did NFTs join the Real Estate industry?
Presently, the bulk of business models lean towards the digital sector. This trending change is due in no small part to cryptocurrency. The crypto world has produced numerous Defi-based apps and development protocols since its inception. These apps and protocols helped increase the output for many businesses and industries.
In addition to the expansion of crypto, there was a replacement platform now known as non-fungible tokens. The introduction of NFTs opened up numerous opportunities for business models and independent digital artists. They provide an excellent booster for businesses and digital creators. The NFT domain evolves with each day and this evolution resulted in the creation of new NFT marketplaces and crypto protocols.
Development platforms like the NFT real estate marketplace are considered relatively new but have vast potential.
What are NFTs?
NFTs are a digital asset anyone can sell online using a cryptocurrency. Non-fungible tokens are one of a kind and only available for a short period. Because of their uniqueness, they have a high value in the market. With increased demand, the value for the digital asset also appreciates. After all, everything with an associated value can appreciate or depreciate based on supply and demand.
The NFT vertical for real estate is rapidly gaining interest. Recently, a virtual plot sold for 1.5 million dollars or 888 ETH. Presently, the United States is pioneering the NFT marketplace development while investing and trading in that field. However, the concept is popular in the European Union and the Middle East.
Overview of a virtual NFT real estate
The concept behind an NFT is simple: non-fungible tokens are digitals assets traded on a decentralized exchange platform. They are built on blockchain tech to verify ownership of the digital support for the customer and secure transaction details. NFTs could represent physical assets as digital assets like video clips, audio clips, trading cards, and real estate.
The evolution of NFTs unlocked many exciting opportunities for businesses that want to take their solutions to the next level. Many experts believe that the estate domain will be a valued addition to the NFT field. The essential estate assets are also represented as NFTs.
The virtual real estate marketplace is the starting point for representing real estate as a digital asset. The pioneer in this field is Decentraland, which means virtual land as NFTs. The game introduced the process of creating an NFT for real estate, thereby appealing to blockchain enthusiasts.
Purpose of an NFT real estate marketplace
The biggest reason for converting real estate into an NFT is the many obstacles the community faces in real life. A property transfer from one buyer to another differs from state to state and is often tiresome. This problem is due to the required filing of a lot of paperwork.
Thus there was a need to overcome these obstacles. This need was met through the combining of real estate with the NFT concept and led to NFT for real estate.
Major NFT real estate platforms
There are many NFT games where you can buy and sell real estate. The most famous ones are Decentraland
Minecraft Each marketplace has a token a user can use to buy different NFTs. The value of these assets primarily revolves around the law of demand and supply. As there is an increase in these tokens, the token value also increases. Hence, investing in these assets when available at a low price could provide high returns in the future.NFT trading: Imagine a metaverse where people can trade in different assets. This virtual trading space is where NFT for real estate comes into play. Typically, we refer to real estate as a physical and tangible asset. Real estate can be a piece of land or an area filled with bricks and mortar. However, this is not the case for real estate NFTs.Users can trade a digital piece of land or real estate in the metaverse, to another player in the metaverse. These NFTs can be earned, sold in an NFT marketplace, or unlocked in a lucky draw. Working model of an NFT real estate marketplace NFT transaction comes about through blockchain technology and is an efficient process. Users can even design intelligent contracts based on their needs and set the rules and nature of the trade. Many blockchain technologies enable users to mint NFTs on their network. Some of the famous ones are Ethereum, Flow, etc.Buying an NFT means the buyer gets a certificate indicating that the […]
How did NFTs join the Real Estate industry?