How NFTs (may) change the real estate world
An NFT regulates the ownership of a digital asset and serves as a certificate of authenticity for the files stored in it. This makes the blockchain-based technology interesting for various use cases in the real estate industry.
The digital transformation is omnipresent. Even the internet is affected by it and is constantly evolving. The current era is called "Web2" and is characterised by centralised platforms and services where large technology companies have control over users' data and content. These platforms are used by millions of people every day to exchange information and interact with each other.
NFTs as digital certificates of authenticity
But now we are on the threshold of the next stage of evolution, the "Web3". Here, the concept of digital ownership is in the foreground. This concerns not only pictures and photos, but for the first time also assets and tangibles such as cryptocurrencies. They belong to the so-called fungible tokens, i.e. they are equivalent and indistinguishable, like euro coins, for example.
In contrast, NFTs (Non-Fungible Tokens) have a unique ID, are distinctive and therefore cannot be replaced. They also build decentralised blockchain technology to guarantee authenticity, ownership and transaction history. This makes NFTs suitable for trading goods that require proof of ownership.
NFT technology has the potential to permanently change existing business models that rely on third parties and intermediaries.
Opportunities, benefits and risks
The possibility of certificates of authenticity and the reduction of intermediaries are also exciting for the real estate industry. On the one hand, the tokenisation of real estate and smart contracts opens up new business models and opportunities for trading with digital certificates. On the other hand, various process steps in property management or leasing can be handled more efficiently if no third parties have to be involved for the verification of information.
In this white paper, we have examined various use cases and considered future areas of application for NFTs in the construction and real estate industry. In addition to the opportunities, we also highlight the challenges and risks. Download the NFT white paper to learn more.
The connected world of tomorrow presents many opportunities for the construction and real estate industry, accelerates change and leads to new challenges. Our Future Lab supports you in recognising and assessing relevant developments in due time, expanding your value creation with ecosystems, anchoring innovation in your DNA and aligning your products and services with the future.