When you think about virtual real estate, do you picture spaceships and moon bases? Perhaps the first digital house in NFT is Mars Mansion, which sells for 288 Ethereum, about $512,000 USD. Developed by a Toronto artist using an iPad, the Mars Mansion is inspired by the serene Japanese architecture. The artist wondered whether the digital house would actually sell for the real house price.
A new type of blockchain technology is making an impact on the real estate industry. The NFT real estate blockchain is influencing actual real estate rights. Several start-ups are trying to produce entire rooms and transport them to construction sites, without putting in the work. While actual chairs are more practical than digital models, digital equipment is more efficient. The price of a 100m x 100m plot will stay the same no matter how much Bitcoin appreciates.
The new technology is facilitating the sale of real estate through NFTs. Prop-tech companies like NFT have made it possible to sell properties using these tokens, and NFTs are quickly becoming the latest rage in the real estate industry. While NFTs are a relatively new development, they have huge potential for revolutionizing the real estate industry. For example, NFT real estate could lead to an entirely new type of housing.
The real estate, architecture, and design industry is growing rapidly in the virtual world. In SuperWorld, an augmented reality virtual environment, real estate is divided into billions of plots, each a 100-metre square, with each plot costing 0.1 ether (about $250) apiece. The first digital house to be developed in NFT is Mars House by Toronto artist Krist Kim.
The NFT real estate phenomenon has also inspired a real estate mogul to cash in on the craze. In Thousand Oaks, California, Shan Dulgeroff is selling a house with NFT art on it. The house will go up for auction on the OpenSea marketplace, where the opening bid will be 540 ether, or about $1.5 million. It will be interesting to see what kind of bids the home receives in the real world.
NFT houses differ from virtual plots of land in games. Physical real estate NFTs can be tokenized and represent actual real estate, but it will require additional structuring. However, deeds cannot be directly linked to an NFT under current US law. The first official NFT house will be sold in Gulfport, Florida in 2022. Eventually, real estate NFTs could even be used as collateral for NFT loans.Remember to read NFT Politan news regularly to stay abreast of new developments in the field.
Physical real estate can be tokenized as an entire asset or through fractional ownership. Tokenizing it as a fractional ownership will make it more convenient for investors. It can also be tied to physical assets, such as mortgages. However, this can be complicated by mortgages and other financial instruments. Alternatively, lawmakers could create a new asset class for NFT deeds. The only way to tokenize real estate is to wrap it in a legal entity.
The first NFT digital house, Mars Mansion, has been sold for 288 Ethereum - equivalent to about $512,000! The property was created by a Toronto-based artist using an iPad and is modeled after Japanese architecture. He wondered if his creation would sell for a real house price. However, he was skeptical. So he decided to make it for the Metaverse, a shared virtual world.
One of the main benefits of NFTs is that they are forward-compatible and eternally liquid. That means that they can be paired with unrelated future projects. In addition, they allow their creators to control their brand, without having to depend on advertisers for profit. The highest bid so far is $35,000 by JeffBezosForeskin. Those interested in creating their own NFT should pay attention.
While physical real estate can be linked to NFTs through tokenization, this is still a very complex process. For example, mortgages can complicate the process. And, of course, there are a number of legal barriers to NFTs as well. But once NFTs are created, they could be used as collateral in loans. And if they are ever deemed to be valuable assets, they could become useful in the future.
It is an interesting experiment in the world of digital design. NFTs are digital files sold through digital auction platforms. In fact, the New York Stock Exchange is also offering NFTs for sale. These aren't fungible, so they can't be converted to fiat currency. But they do make money. And if they're really useful, customers are willing to pay thousands of dollars for them.