In the last half of 2018, there was a flurry of activity in the real estate industry where a new technology called NFT appeared. It’s known as Non-Fungible Tokens and the value that they are bringing to the table is huge. In fact, they could revolutionize how we live and do business. The crypto market is an intriguing one, but not everyone knows what goes into this space – or how these tokens can help realtor investors make more money.
Non-Fungible Tokens (NFTs) are digital assets that represent a real-world item or thing. It can be a cryptocurrency, it can be in-game items or it could even be real estate. Since the technology was first developed in 2014, it has existed on the Ethereum blockchain – and its value has been skyrocketing ever since. Many industries have seen the opportunity for NFTs to be applied, including game developers and real estate agents.
DIGITAL REAL ESTATE
NFTs are unique in the sense that each token represents a unique asset on the blockchain. Think of it this way: if you are collecting Star Wars toys and trading cards, you could have Darth Vader, Yoda, R2-D2 and Stormtroopers. Every one of these items is different from the others because they have different attributes and value. Every single NFT is like this – there are no duplicates.
The value of the token will increase if more people are using it, and decrease if the positive use factor decreases. If you have one of these collectibles, you can show it off and your friends will think it’s cool. But when you don’t display that item, then it is essentially worthless – meaning that every single NFT is worth something simply because of its rarity alone.
A REALTOR INVENTORY
Let’s talk about real estate and NFTs. Real estate is a fantasy for most, but there’s a chance that it could replace your mortgage payments in the not-so-distant future. The internet has allowed us to do stuff such as mapping, recording and catalogue our property. With the blockchain, you can now have digital representations of that data on the blockchain. This means that property data such as ownership, location and information about the physical building will be put on the blockchain – therefore reducing fraud and improving security.
This is huge for real estate agents and more importantly, their clients. With NFTs, it’s possible to have smart contracts that automatically execute when certain conditions occur. For example, if you want your house valued, you could enter all the information into the contract. Then, it is automatically recorded and the verified data can be used by potential buyers or investors. You could also use a smart contract to set up the conditions for a real estate sale or rental agreement. This means that the payments and other conditions to release funds would all be automated.
Another benefit is speed of execution – NFTs will mean your transaction can be done in real-time and automatically. Your property could also become a location-based service (LBS) on the blockchain. This would mean that prospective buyers could see how close your property is to the beach, shops, schools, hospitals and more.
The future of real estate may be non-fungible tokens – it’s a new technology but there’s no doubt that it can do wonders. Blockchain and NFTs are poised to be a game-changer and the real estate industry is close to having it implemented.
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