WHAT IS AN NFT?
Non-fungible token. means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind house, however, is non-fungible. If you traded it for a different house, you’d have something completely different.
NFTs are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. An individual NFT has unique characteristics that dictate its peculiarity; hence the name “non-fungibles”. They are much similar to rare and precious stones, works of art, and luxury things in general. What you need to know:
NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
NFTs can be used to represent real-world items like artwork and real-estate.
“Tokenizing” these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.
NFTs can also be used to represent individuals’ identities, property rights, and more.
Why Are NFTs Important?
Modern finance systems consist of sophisticated trading and loan systems for different asset types, ranging from real estate to lending contracts to artwork. By enabling digital representations of physical assets, NFTs are a step forward in the reinvention of this infrastructure.
To be sure, the idea of digital representations of physical assets is not novel nor is the use of unique identification. However, when these concepts are combined with the benefits of a tamper-resistant blockchain of smart contracts, then they become a potent force for change.
NFTs can also democratize investing by fractionalizing physical assets like real estate. It is much easier to divide a digital real estate asset among multiple owners than a physical one. That tokenization ethic need not be constrained to real estate; it can be extended to other assets, such as artwork. Thus, a painting need not always have a single owner. Its digital equivalent can have multiple owners, each responsible for a fraction of the painting. Such arrangements could increase its worth and revenues.
The most exciting possibility for NFTs lies in the creation of new markets and forms of investment. Consider a piece of real estate parceled out into multiple divisions, each of which contains different characteristics and property types. One of the divisions might be next to a beach while another is an entertainment complex and, yet another, is a residential district. Depending on its characteristics, each piece of land is unique, priced differently, and represented with an NFT.
NFTs in Metain case
Metain applies Blockchain technologies and NFT characteristics by:
Fractionalizing Real Estates asset to create a new market and investment form followed Real Estate Investment Trust (REIT) regulations.
You can start investing in Real Estate with a small amount of money, starting as low as $10 USD. Each NFT represents a bond backed by the real estate’s income streams.
What is REIT and why Vietnam real estate market? Please read more here.
About Metain
Metain is the first co-investment platform that is highly profitable, transparent, safe, and powered by blockchain technology, where crypto investors can find shelter for their hibernated assets during the winter.
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