What do you know about NFT Real Estate? What is this? How does the NFT Real Estate work? We are elaborating NFT Real Estate in this piece of blog.
Everybody familiar with blockchain technology knows well about NFTs and NFT marketplaces. NFT has spread its legs to Real Estate business. NFT Real Estate is a new entrant and started attracting new investors who want to mint millions in the NFT market. NFT Real Estate is a popular word, now, among investors, techpreneurs and blockchain developers. This is especially gaining grounds in the US, European Union and Middle East.
What Are NFTs?
For anyone who is not familiar with this booming trend, NFTs stand for Non-fungible tokens. What they represent are digital assets that can be sold online by using cryptocurrencies. Non-Fungible Tokens are one of a kind and available only for a short period of time.
Since NFTs are unique, it will have value to it in the right market. If the demands persist the digital assets are most likely to appreciate, just like any crypto currency. After all, everything which has a value associated with it will appreciate or depreciate according to its demand and supply.
NFTs can exist of anything digital. For example, it can be of memes, tweets, videos, pictures, arts, music, game equipment, and even now virtual estate. NFT vertical of real estate is getting picked up rapidly. Recently a virtual plot got sold for $ 1.5 million or 888 ETH from the game Axie Infinity. As usual, the US is the pioneer in developing NFT marketplaces and investing/trading in the same. However, it is also popular in the European Union and the Middle East. Indian blockchain developers are among the best in developing NFT marketplaces.
We have written an article about NFTs and how they work. You can check it out here.
What Are Real Estate NFTs?
There has been a push to NFT games recently. This is because, unlike traditional games, there is the chance for gamers to earn money while playing games. There are many ways for users to earn a passive income by investing in real estate NFTs.
Renting the NFT:
Just like how we can put an asset on lease to earn money out of it, we can lease an NFT. Since NFTs are unique, the owner of that particular NFT is also unique. There is no way for others to have the same NFT. That is unless you sell it to them or give it on lease to them. The investor will have access to your NFT and will be able to make use of it on real estate in the game, and in exchange for this experience will pay the lease amount.
Investing in the real estate game:
There are many NFT games that are quite famous. To name a few:
- Axie Infinity
They have their tokens which can be used for buying different NFTs. As is true with any asset, the value of these assets is also governed by the simple law of demand and supply. As the demand for these tokens increases, the token value will also increase. So, investing in these assets when they are available at low price, can possibly give high returns in the future.
NFT trading: Now consider a metaverse in which people can trade different assets. This is where NFTs of real estate come. Traditionally real estate is referred to as something physical. This can either be a piece of land or made up of bricks and mortar. This is not the case in real estate NFTs.
We can trade a digital piece of land, which is real estate in the metaverse to a different player in the metaverse. These NFTs can be earned in the game, or traded in the NFT marketplace, or unlocked in a lucky draw.
How Does NFT Real Estate Marketplace work?
This NFT transaction is facilitated by blockchain technology and is comparatively faster. We can even design smart contracts according to our needs to set rules for the transaction and its nature. Many blockchain technologies allow us to mint NFTs on their network. Some of the famous are Ethereum, Flow, etc.
The transaction occurs via NFT marketplaces. Below are a few forerunners:
When a buyer buys an NFT from a seller, what the buyer essentially gets is a certificate stating that the NFT is now owned by the buyer. Crypto wallets need to be linked to the respective NFT marketplaces for carrying out the transaction. The wallets facilitate the transaction of funds from the buyer to the seller and also store the NFT within them. Some of the most famous crypto wallets are:
- Trust Wallet
The real estate marketplace, like any other marketplace, requires features to help listing and buying of NFTs. The marketplace needs to
- Be fast and secure
- Have a well-programmed search tab
- Have a filter section for personalized interests
- Have a Performance tracker of assets
- Have a fantastic storefront to be appealing for visitors and the users of the site
- Clean in appearance and easy to understand.
Why choose Vardhaman Infotech as a partner to help you launch your very own NFT Marketplace?
At Vardhaman Infotech, we work significantly in the domain of Blockchain technology for startups as well as enterprises. We take on on-demand projects and also offer quick-to-deploy custom solutions. We are specialized in major blockchain protocols such as Ethereum, Stellar, Hyperledger, and others. The NFT Real-Estate marketplace solution is just one of them. We have several Americans as well as indigenous clients in this segment.
Our NFT solutions enable Blockchain entrepreneurs, art platforms, start-ups, game publishers, and other interested businesses to build their own NFT marketplace and improve efficiency. Get in touch with us if you are interested in launching your very own NFT Marketplace and we would be honored to partner with you.