Many would have others believe that NFTs are nothing more than tradable JPEGs, but this couldn’t be further from the truth. NFTs: Revolutionizing Ownership NFT stands for Non-Fungible Token – “Non-Fungible” meaning a unique signifier of ownership, and “Token” meaning a cryptographic record in a blockchain. Put together, NFTs are unique records of ownership that are stored in a blockchain. Since NFTs represent ownership, their potential applications are only limited by the human imagination. NFTs are already being used to sell music, heroes in blockchain games, and digital land from metaverse projects, e.g. The Sandbox. Additionally, recent developments in blockchain technology have enabled investors to purchase physical assets with NFTs. This is made possible by tokenization, the process by which physical asset ownership is encoded into a blockchain. This has many implications for the investments world, the most impactful of which is tokenized real estate. Pioneering Metaverse Real Estate NFTs are powered by smart contracts, bits of software that enforce digital agreements. Smart contracts make ownership management through NFTs extremely efficient by handling royalties, payment distributions, and the transfer of legal ownership rights. When applied to real estate, smart contracts take the place of middlemen such as buyer and seller agents, escrow agencies, banks, and title companies. This gives NFTs the potential to make real ...
