Real Estate News

Blockchain-transactions-information - nodes - hash - cryptography - NFTs - smart contracts - peer to peer networks - mining crypto

How will NFTs and cryptocurrency impact real estate market?

A NFT(Non Fungable Token) is a digital asset that can be bought and sold like a physical asset. People are now buying NFTs for digital artwork, music, videos and items to use in digital spaces known as the metaverse. The record of the sale is stored in a decentralized digital ledger called a blockchain that proves ownership, akin to having the title for a car.

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.

To create a smart contract, which NFTs transactions are based on, a buyer and seller agree to terms that are written into code and housed on the blockchain. The terms of the contract are self-enforcing without the need for a third-party facilitator.

• NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• NFTs can represent real-world items like artwork and real estate.
• "Tokenizing" these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud.
• NFTs can also function to represent individuals' identities, property rights, and more.

A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.

Blockchain is a record-keeping technology designed to make it impossible to hack the system or forge the data stored on it, thereby making it secure and immutable.  It is a type of distributed ledger technology (DLT), a digital system for recording transactions and related data in multiple places at the same time. Each computer in a blockchain network maintains a copy of the ledger to prevent a single point of failure, and all copies are updated and validated simultaneously.

• A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

Recently, blockchain hacks have drastically increased as hackers have discovered that vulnerabilities do in fact exist. Since 2017, public data shows that hackers have stolen around $2 billion in blockchain cryptocurrency.

Tromtions

Source:  Investopedia