Improve security and transparency in the industry.
The tokenization of physical property can make buying and selling real estate more efficient and secure. Since NFTs are stored on a blockchain ledger, anyone can track their ownership history and previous transactions to verify their authenticity.
In the NFT world, the term fractionalization typically refers to sharing the costs and ownership rights of a collectible or piece of digital art. In the real world, fractionalized NFTs let you share the cost and ownership rights of physical assets such as real estate with multiple people. Minting the ownership of a property as a fractional NFT may help lower the barriers to entry for people looking to dip their toes in the real estate market.
Liquidity of real estate
Liquidity is an obstacle that could affect property value because matching the right buyer with the right property may be difficult. However, since blockchain technology is borderless, it can help open up the property market to a global pool of buyers by increasing the number of market participants.
The real estate industry is notorious for its slow processes, but NFTs can help to simplify and speed up these processes. Because NFTs exist on a decentralized ledger, the transaction and ownership history is accessible to everyone. Moreover, the bureaucracy and processes related to assets changing hands can be automated and maintained with the help of smart contracts — a blockchain program that automatically executes commands when conditions are met.