NFTs will Improve the Real Estate Industry
With a market value of over $40 billion, the NFT industry is among the fastest-growing sectors in the world. The industry started with digital artists selling standalone pieces of their art, and today it has grown into an industry swarming with thousands of projects that have the potential to transform the world’s major industries.
In a few short years, the NFT market entered a neck-to-neck competition with the global art industry and is on its way to disrupting the gaming, fashion, global supply chain, and metaverse sectors. Even in the realm of finance, financial NFTs are finding creative ways to solve some of the most pressing problems of digital assets.
NFTs are now entering and disrupting the $34 trillion global real estate market. With the ability to represent unique ownership and allow immediate transfers, NFTs in real estate are transforming real estate transactions into an open market for worldwide and instantaneous transactions. In this regard, LiquidEarth, is creating the first-of-its-kind real-estate NFT marketplace and peer-to-peer lending platform.
How NFTs Transform Real-Estate
NFTs are the by-products of blockchain technology, similar to cryptocurrencies, but what makes them unique is their non-fungibility. On Ethereum, NFTs follow the ERC-721 standard and are minted through smart contracts. These smart contracts assign a unique hash code to each NFT that acts as an identifier and cannot be replicated.
NFTs can have only one owner at any given time and the hash code makes it possible to trace the owner at all times. It’s these features that are utilized in the LiquidEarth real estate NFT marketplace.
LiquidEarth is a platform that tokenizes real-world assets as unique tradable NFTs that represent true ownership of the property, and up to date appraisal value. The platform is among the first in the industry to integrate real estate with NFTs to enable seamless buyer-seller interactions. This integration digitizes property ownership which retains all the legal rights and protections offered by traditional ownership. The issued NFT can then be redeemed for the actual deed and other closing documents of the underlying property.
Platform users can buy and sell property instantly using a range of cryptocurrencies including USDC, Ethereum, Algorand, Avalanche, and others. This means the whole process of buying and selling property becomes simpler and faster. Moreover, purchasers who were previously confined to buying real estate within their geographical area can now easily purchase properties across the globe. LiquidEarth has a goal of bringing in over $100 billion into the crypto markets through real-estate NFTs.
Over time, buying and selling property in the form of NFTs is also more affordable and sustainable to buyers and sellers. LiquidEarth users can save up to 4% of the property’s value while purchasing it as an NFT.
To prevent property theft, loss, or fraud, there are multiple security measures in place in the marketplace including KYC/AML, and a clawback mechanism to return the NFT to the true owner.
LiquidEarth is rolling out some innovative features this year. Users will get access to the first-ever real-estate backed NFT leverage platform that allows them to borrow against their NFT or their crypto holdings to buy NFT properties on the marketplace. The company will also introduce staking economics to encourage users to stake their NFTs and earn tokens. Users will be able to sell or trade their NFTs while they are still staked on the platform and accruing value.
LiquidEarth is the first of its kind in the real-estate industry and can prove to be the next step in the evolution of the world’s biggest asset class.
At over $325 trillion, the value of real estate assets across the globe have not been integrated with the crypto industry. With the introduction of NFTs, one of the most valuable and stable asset classes is poised for a complete change of course. Companies like LiquidEarth are opening new dimensions altogether in the real estate market by integrating with the crypto market.
By allowing seamless interaction between buyers and sellers, the project aims to change the very makeup of real estate by bringing in new participants via instantaneous real estate transactions. These innovative assets will create new opportunities and a level playing field where buyers, sellers, and agents can buy and sell properties with ease.
Image by Sebastian Wagner from Pixabay