Buying a house on an NFT marketplace? It is now possible!

Wednesday, April 13, 2022 in Tampa, Florida. A two-click experience that turns a collective dream into a reality. A house is sold on an NFT marketplace.

Until now, the conversation around Web3 innovation has been dominated by the art world and viewed as a way to prove and secure ownership of digital assets.

Property is above all an idea, a representation that does not exist in objective reality, but more as a construct of human interaction. It exists because humans agree it exists. Countries, money and private property are examples of social constructs.

Keys and codes, the future alloy of real estate and blockchain

Because ownership is just a title, it’s a record in a database, so it’s a digital asset. It could therefore be governed by a blockchain. This is precisely what Web3 (which includes NFTs, smart contracts and blockchain) can now allow. It should make it possible to process the property acquisition process entirely online, making transactions more efficient, automated and with fewer intermediaries. The entire sale will be processed on a secure platform, which creates transparency for all parties.

One could certainly think that this would not be possible because of certain problems specific to the acquisition of real estate, such as the mortgage loan. However, new products exist today that can provide mortgages to anyone who wants to buy a home secured by cryptocurrency wallets. And a number of DeFi protocols are also looking to expand to provide installment loans and mortgages to cryptocurrency holders, like XBTO, Milo, Helio.

We can also envision a new global marketplace for home transactions, much like OpenSea’s NFT marketplace today. One could imagine creating such a marketplace at OpenSea, however the purchase of real estate requires that each wallet (it’s almost like your login), with which you connect and buy goods, is identified. However, NFT Marketplaces are

Imagine this future: You find the house you want, connect your wallet or your online bank in one place, and in a few clicks you participate in a transparent online auction. If you need a loan, you apply and get approved through the auction process, instantly. To better feel the reality of what we are describing, let us return to the Tampa case that we were describing.

This was the third NFT sale of a home in the world. The buyer with the highest bid had attended the open house, but at the time of the sale was on a trip to Texas. On April 13, they became owners via Web3 settlement.

Once the sale has been concluded, the buyer has received all the documents. All that was left was to receive the code from the smart lock to receive the key. No hassle. Totally secure. Swift like lightning. Anyone who wants to can learn about this transaction by following the link.

This house sale is now immutably recorded on a public blockchain. As long as Ethereum is supported, no one can modify or remove this proof and the NFT can still change hands. Obviously, this can be done on any decentralized blockchain.

The future is already here

In 2021, 12% of first-time home buyers tapped into their cryptocurrency funds to secure their down payment. This means that a new generation of buyers is ready to invest in blockchain and cryptocurrencies. At a time when we are starting to talk about the possibility of investing in virtual real estate via the Ethereum Words metaverse, we are not much further from a better positioning of real estate on the blockchain.

It is obvious that, like so many other areas of transactions, the real estate market will also increasingly join the NFT Marketplaces where the blockchain allows safer exchanges without intermediaries.

Source: forbes.com

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Luc Jose Adjinacou

Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.

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Buying a house on an NFT marketplace? It is now possible!


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