NFTs, not just a monkey
Note: This article is not financial advice and should not be considered a substitute for professional advice.
Non-fungible tokens (NFTs) are becoming more widespread in the digital world and in the real world itself. They are used to establish ownership and transfer various rights in different forms of media, art and entertainment. These are unique digital tokens that can be stored on a blockchain and are used to represent the ownership of an asset. Due to the increasing number of NFTs and blockchains being used in various industries, many entrepreneurs are looking for new ways to disrupt the traditional way of doing business. For instance, the real estate industry is starting to take notice of the potential of blockchain technology.
In real-estate transactions
Non-fungible tokens (NFTs) are used to represent ownership of a property.
Currently, buyers and sellers use various intermediaries such as lawyers, title insurance companies and escrow holders to search for encumbrances in public records.
With blockchains, NFTs can potentially bypass these intermediaries and provide a more efficient way to settle transactions.
First example was in May 2021 when Propy helped Michael Arrington, the founder of the tech startup company, TechCrunch, list his apartment as an NFT. It was then sold for $93,000. The company claimed that this achievement was the world's first real estate-backed NFT, and on April 12. 2022, it sold another property for $215,000.
This type of transaction is unlikely to be widely used in the US due to the lack of legal recognition for NFTs. Also, the traditional real estate industry's entrenched stakeholders are unlikely to embrace this new technology. But hopefully with the right regulation, NFTs will be very helpful moving ownership status of physical assets.
In the music industry
NFTs have been making a huge impact. In first quarter of 2022, the popular artist under the name Snoop Dogg sold for more than $44 Million in NFTs, while other artists like Justin Bieber, Rihanna and Kings of Leon are beginning to see the huge upside of letting their music into the blockchain.
With the help of blockchain technology, musicians can now benefit from the royalties generated by the consumption of their music automatically. Because of this, artists can finally be given their fair share of the revenue generated for their work.
Gaming on the blockchain
The concept of digital collectibles has been around for a long time in the gaming industry, which has over two billion players globally. In many games, players are encouraged to unlock special accessories for their characters, which can be purchased and sold in-game using fiat currencies.
This type of economy has created powerful economies in the gaming industry. The intrinsic value of NFTs has been attributed to their low availability. Due to their scarcity, online players are always looking for the origin and authenticity of their digital gadgets.
In 2021, an estimated 78 trillion dollars’ worth of non-bankable assets were currently in existence, such as real estate, rare stamps, and fine wine. With the help of blockchain technology, NFTs can help solve the liquidity issue by enabling the easy transfer of ownership of these assets.
To learn more about NFTs, sign up for JengaX newsletter to receive updates on the NFTs use case.
