ith the NFT market still in its early days, new applications are being created on a regular basis. NFTs as deeds may be the next big thing in real estate property markets, combining NFT technology with real estate to create a new use case.
Do NFTs have a real-world property use? In a nutshell, the concept is that the NFT serves as a deed for ownership of the property. The ownership of the NFT (and therefore also the property) can then be tracked, verified, and transferred via blockchain in a decentralised manner.
There are still many unanswered questions and potential problems associated with buying real estate through blockchain technology. For example, after you purchase the NFT, you need to make sure that the property is in your name outright through all traditional channels.
You would typically have to secure the property by attaching it to a legal entity, such as an LLC. Through the contract of NFT, you can then transfer the LLC ownership to whoever is the present owner. Doing this would give them both blockchain and county clerk's office (where traditional deed will be held) ownership.
The other problem is how to tax such an occurrence. Is the technology's usefulness high enough to withstand the tax burden incurred when dealing with property?
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.