NFTs or non-fungible tokens aren’t limited to the art world, as some recent use cases show that even a house can be sold on the blockchain as an NFT. In Colombia, South Carolina in the US, real estate online platform Roofstock recently complete the sale of a house as an NFT on the Origin blockchain using stable coin USDC. The house was sold to a local real estate investor for $175,000.
While the transaction was completed successfully, it took many preparations and precautions, including an offline, KYC check of the buyer while creating the buyer’s wallet on Origin market place. There were several players involved in the process as well. The house itself had a title under a limited liability company, and ownership associated with the NFT called HomeonChain residing on the Ethereum blockchain. The marketplace platform where the transaction was completed was Origin Protocol. The stable coin USDC came from Circle, and converted into US dollars via Wyre. Financing came from Teller Protocol running a decentralized lending pool.
During the actual transaction, the buyer had to use a multi-sig wallet where two parties signed off on the deal before releasing money. Origin then carries out the swap in seconds. Money was split to send out commissions and fees (going to Origin and Roofstock, of 0.5% and 2.5% respectively).
The multi-stage process and the complexities inherent in the deal are apparent, but this is expected in the current, nascent stage of the technologies involved. With the evolution of blockchain and NFTs, the real estate industry can expect deals to happen much smoother and with buyers not having to grapple with the nuts and bolts of the underlying platform.
An additional advantage of NFT real estate deals, other than being completely online and transparent, is that an NFT can be split into smaller units. A house can thus be sold in smaller units too, and that will facilitate the market with more opportunities, efficiency and flexibility. Another real estate player using blockchain for transactions is the new venture Propy.
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