NFTs are the 'keys' and Metaverse is the 'door' to the world of Web 3.0, an improved and latest version of the Internet. And here, we see the world swiftly transitioning towards that realm, leveraged by the latest technological advancements, as the French city of Cannes sells its landmarks as NFTs to find integration in the metaverse.
NFTs are non-fungible tokens issued on the blockchain to represent something that's unique. NFTs have been quite a rage since the beginning of 2021. It was, although, by the end of the year, that the world came to realise the real-life use cases of NFTs. Crowdfunding, Patents and Intellectual Property, real estate, and finally, building metaverses. The recent sale of Cannes landmarks for €330,000 is the latest buzz in the town.
But first things first, what does an NFT mean?
Well, an NFT certifies the ownership of a product with a unique signature that cannot be forged. In other words, an NFT (representing a digital asset) can neither be replicated nor modified. The ownership and origin of an NFT can always be traced with the help of its underlying technology, blockchain- a technology that is inherently transparent and immutable.
Let's find out how the city of Cannes benefits from NFTs for its iconic landmarks.
Cannes, a majestic city famous across the world for its prestigious film festival, is the home to some of the most exquisite architecture in France. Ten of its emblematic locations, including the Croisette and the Palais des Festivals, went on sale led by Artcurial.
Arnaud Oliveux, auctioneer for Artcurial, said:- "Until now NFTs have been limited to graphic creations. For the first time, we have put on sale NFTs linked to real estate locations."
What really intriguing is the fact that the 3D models and NFTs offered to the bidders can eventually integrate into the metaverse, facilitating them to host virtual cultural events.
NFTs landscape: Finding a new dimension in real estate
As NFTs rise in popularity, they are eventually branching out, finding new dimensions. They are now representing the ownership of tangible items in the real (physical) world, like real estate property.
In particular, NFTs in real estate are gaining traction, given their advantages over the traditional market. Of its many challenges, the conventional real estate markets face a hassled transfer of ownership, fraudulent deal, illiquidity, and barriers to entry (financial and geographical). NFTs ensure to overcome each one of them, head-on.
NFTs streamline the transaction process, by removing any middleman in the process. The buyers and the sellers are in direct contact with each other. Further, fractionating the digital property lowers the entry barriers for a global demographic. Additionally, NFTs could be used for increasing liquidity by involving in financial protocols like DeFi (Decentralised Finance) and TradFi (Traditional Finance). Due diligence comes complementary to the blockchain network, owing to its transparent nature.
“The critical element, NFTs, makes it a one-of-a-kind solution when it comes to creating content- digital properties or any other collectibles. The NFT unique technology can get authenticated using the fabrics of blockchain technology. It can be purchased using digital wallets including cryptocurrencies, and also debit or credit cards, and assetised using fintech protocols available in the network.”, Dinis Guarda, author, academician, influencer, serial entrepreneur and leader in 4IR, AI, Fintech, digital transformation, and blockchain.
Real Estate NFTs bring out a fresh facet of this technology- the metaverse. From bringing up digital storefronts by major brands to virtual gaming in the Play to Earn (P2E) model, and virtual ‘metaversive’ events, it's human imagination only that limits the application of technology in the real world.
The future: Opening the long-closed doors
Conventionally, real estate has been quite opaque in its operations, shutting any interference from external participants. With NFT integration, however, the doors that were previously never explored are opening by themselves; presenting opportunities that were never even thought of. Direct participation has also accelerated the processes, enhancing the global transformation that Web 3.0 promises inherently.
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