In the last few years, crypto-currencies have been dominating headlines. This is because many of them are a huge asset to the blockchain industry and their value has increased significantly in recent months. The latest trend in the world of cryptocurrency is non-fungible token or NFT for short. These tokens can be any form from a certificate to an artwork which makes it very different from other currencies such as Bitcoin or Ethereum. One example of this type of token is Cryptokitties which became so popular that its developers had to create a new site just for it! In fact, two kittens sold for $140K each on December 6th 2017! As you can see, NFTs are quickly becoming one of the most talked about topics in the industry.
What is an NFT?
Before we can understand what non-fungible tokens (NFTs) are, we need to know what fungible tokens (FTs) stand for. A common token such as Bitcoin represents an asset with the same value and identical price across all marketplaces which makes it very easy to use them not only as currency but also for cheap exchanges such as money transfer or payment transfers. The term “fungibility” comes from fungible commodities which means that they can be easily replaced with another identical commodity e.g. 1kg of sugar = 1kg of sand = 1kg of salt. In other words, items become interchangeable between one another and thus, replaceable. NFTs, on the other hand, are tokens with unique and make them more like collectibles such as trading cards or unique assets such as land plots which makes one very different from another.
NFTs in Real Estate
There is no doubt that Real Estate, as an industry, has taken significant steps forward in recent years. One of the most important factors which made this possible were various ways to invest and purchase property remotely. As more and more people start buying properties online across markets, progress was made on making digital assets so they can be bought or sold without having to visit any office or marketplace. This way of buying Real Estate had many advantages but also some disadvantages which NFTs are now tackling for good! However, it will take time before the blockchain starts managing physical assets such as land plots since it must first overcome a number of technical problems with both security and scalability. Some of these issues include high transaction fees for small purchases, slow transfer speeds, lack of transparency, user unfriendly interfaces and complicated cryptography.
For now, many blockchain startups are focusing on creating digital assets which can be bought or sold over the internet without having to visit its physical location. This way of trading is often referred to as EstateTech since it brings numerous benefits such as 24/7 transactions with low fees, greater liquidity, better cross-border payments, worldwide investments with lower volatility and more! So far, some great examples of non-fungible tokens include CryptoCarz tokens for car races being held by Maecenas art gallery in London. This platform allows users to purchase shares in artworks using NFTs which entitle you to receive a percentage of the profit when they are resold.
NFTs in Design
As the world becomes more digitized, the need for unique digital assets is increasing. This is why NFTs are not only being used for real estate but also for various types of design. For example, on November 1st, 2017, a designer named Matan Field launched an online marketplace called district0x which allows users to buy and sell designs & districts using ERC20 tokens. These tokens can be anything from a website template to a 3D model and each one is unique which makes it very different from other designs. What’s even better is that anyone can participate in this marketplace by creating or listing their own designs! As you can see, non-fungible tokens are changing the way many industries are being built by making them more secure, fast and easy to use.
The future of NFT in Real Estate industry
The future of NFT in Real Estate industry is very bright and it’s only going to get better. Not only will it make buying and selling properties easier but it will also help reduce fraud, increase transparency and make the whole process more efficient. So, if you’re thinking of investing in Real Estate, don’t forget to check out the latest NFT platforms!