Hi, Intelly community!
Today we are going to explain to you how Traditional Real Estate can be tokenized into NFTS, into what we call fractionated NFTs, or I-NFTs.
Currently, the NFT market is largely composed of Art or gaming NFTs. However, developments are gradually being made across all sectors. The rise of NFTs have sped-up and improved almost every sector in one way or the other, and Real Estate is, of course, one of those which has been affected, and is continuing to develop, through these technological changes. Currently, NFTs have become much more than just Art. Using a digital token as proof of ownership can be used to solve many complex issues and make a lot more industries more accessible: such as the traditionally complex Real Estate industry. Some organizations and Crypto writers believe that all Real Estate will eventually be tokenized, and that I-NFTs will surely change the way we look at Real Estate investments.
Whilst almost everyone thinks of Real Estate transactions as a lengthy, bureaucratic process, I-NFTs are changing this process. The primary idea that is new about NFT Real Estate, which we have mentioned in our other articles, is the revolutionary idea of decentralized finance. What we mean by this is the idea of blockchain, which as we explained in a separate piece on Intelly’s medium page, comes to mean that participants or customers can confirm transactions
without the need for a central clearing authority. This essentially means that potential customers gain an opportunity to invest in their first piece of Real Estate, without facing traditional barriers. NFT Stands for non-fungible token, which means a unique token which can not be duplicated or replaced.
Traditionally, buying property requires a large amount of capital, and other physical/geographical barriers. One’s mortgage can on the other hand take months of paperwork. With I-NFTs, one is able to invest in any location in the world, and with any amount of capital, small or large. The fractionated aspect of this means that you are able to own a ‘part’ of a property, sharing this with other I-FNT Investors; with fractional NFTs, the ownership of your property can be divided into multiple tokens. Properties are able to have multiple owners, and the Blockchain system means you can make these investments from the comfort of your own home, without having to come across ‘middle-men’, and undertake unnecessary steps. All the ‘token’ data would be stored on the Blockchains, and the transactions are completed in seconds. Proof of ownerships then, are represented by a single verifiable token, without any paperwork or hassle. Investors can then benefit from rental income and value appreciation of the property, choosing to sell their share if they would like to do so.
To conclude, purchasing a house can be extremely tiring and difficult for many people, and it takes a lot of time, luck and energy to secure a mortgage. As our readers will be aware, It is a bureaucratic process which takes a lot of paperwork, and effort. I-NFTs are here to ease that process for potential buyers. Anyone, anywhere can benefit from Real Estate tokenization. See Intelly for more.