Use case of NFT in real estate market

Let’s take the case of buying a property. The most common way to buy a property is to pay a deposit upfront. After getting the deposit, the seller will release the title of the property. Now the buyer can take loan from bank to complete the purchase. The bank will give the loan only if the buyer submits title deed of the property as collateral. The buyer is completely dependent on the seller for the title of the property.

NFT comes in play to solve this problem. If the title of the property is recorded on the blockchain, the buyer can transfer the title to the bank. This way the buyer can get the title from the bank without the seller. The price of the property can also be tokenized. So, the buyer and the seller can trade the price of the property using NFT.

Other applications of NFT:

Most of the non-fungible tokens are pre-mined. They are used to represent unique digital assets. But the fact is that many digital assets are not unique. For example, digital photos, videos, books, articles, etc. These digital assets are not unique. It can be said that they are non-fungible too. In this case, NFT can be used to represent the digital assets.

The general ledger of a business can be recorded on the blockchain. But it is not possible to represent every individual transaction. For example, if we say that the ledger of a business contains the transaction of 1 million people. It would be impossible to record every individual transaction on the blockchain. In this case, NFT can be used to represent the individual transaction.

Conclusion:

NFT is a powerful tool to represent digital assets. It can be used to represent unique digital assets as well as non-unique digital assets. The general ledger of a business can also be represented using NFT. This is the future of tokenization.

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Thanks for reading!!