Asset tokenization is the process of creating digital tokens that represent ownership of a physical asset. These are known as NFTs or Non-Fungible Tokens, non-fungible meaning individual or one of a kind, unlike bitcoin for example which are identical and fungible. It is possible to tokenize assets directly with known market value, like artwork or digital trading cards and when a person purchases an NFT, they are assured of sole possession.
Real Estate property is a perfect asset to convert to an NFT, the unique digital title to the property is stored on a blockchain ledger which reduces the risk of fraud and improves the ability to prove ownership.
People are already purchasing high-value assets such as avatars or automobiles online and they have come to expect the same ease and transparency when buying Real Estate. A new generation of home buyers is looking for solutions other than the costly and lengthy process of home-buying, with its reliance on outdated methods of transacting business and multiple middlemen. Brokers and Buyers alike want a transparent process that is quick, efficient, and reflective of the online era we live in. A protocol that transfers an asset from one wallet to another, collects personal names and KYC information, and ensures the transaction is completed swiftly and accurately.
Clients are becoming more educated, and there is growing interest in creating NFT Real Estate with Real Property. Agents and Brokers will need to set themselves apart from the competition by actively learning, understanding and engaging in NFTs and Blockchain. Changes in technology mean revolutionizing our concept of a real estate commodity, and what clients will come to expect in a transaction.