NFT
From artwork and music to videos and traditional assets , NFTs are a growing space that is capturing the attention of Gen Z investors .
What are NFTs ? In a nutshell , NFT stands for non-fungible token . These digital tokens are created using the same programming process that generates cryptocurrency . An NFT could be any number of things , like a car , a piece of real estate , or digital artwork .
Real estate tokenisation converts the value of real estate into a token . The token is then stored on a blockchain , enabling digital ownership and transfer . These divisible tokens each represent a fractional share of the ownership stake in that real estate .
In practical terms , the owner could open an account with a blockchain trading platform , and could then create their NFT by verifying their ownership of the asset .
These details would be stored on the blockchain , until such a time as someone decided they would like to make an offer on the NFT - or , ownership of the NFT .
While buying and selling real estate as NFTs on the public blockchain is highly embryonic , the potential for such a service is huge . The cumbersome , international property market which is ripe for reinvention would benefit massively from the opportunities that the NFT market will provide .
NFTs and the crypto winter However , the current global economic downturn has had a sharp impact on the NFT market . Sales are down , along with the price . So what do the experts forecast for this dynamic , transactional space ?
Wes Levitt is Head of Strategy of Theta Labs , a leading blockchain infrastructure
76 February 2023