Articles Posted in Crypto-talk

By:  Alejandro E. Jordan, Esq.

Real estate, as opposed to movable personal property, does not need a physical transfer because it is immovable and therefore impossible to steal. Future real estate transactions will increasingly be conducted digitally with the use of new technology. Due to the coronavirus, there have been many shifts in the way we live our lives. One of these shifts has been the process of doing everything virtually. Real estate is being influenced by this shift which is making it possible to own an asset digitally instead of just physically.

The world of digital assets is growing, and we’re seeing more and more of our daily lives turned into computer-readable formats. NFTs are being used to generate art and new digital commodities in the metaverse. Most of the world’s currency is already digital, just 8% of it is physical. The stock market is also now digital and easier than ever to trade in. With the help of e-commerce marketplaces like Amazon, eBay, and Alibaba, real physical things of generally low value, like books and clothes, are sold online. In contrast, high-value assets such as real estate, vehicles, pricey collectibles, yachts, and startup investments are increasingly functioning digitally as a result of their digital ownership representations.

By:  Alejandro E. Jordan, Esq.

With regard to capital appreciation, real estate has traditionally been considered to be one of the more popular investment options. Remember, it is a limited resource whose value is intrinsically related to its status as a scarce resource. What happens, though, when real estate begins to lose its sense of reality?

Please allow me to introduce you to the world of virtual real estate. A booming real-world housing market can be found in this area of the country. The entire spectrum of options is available, from real estate agents and leasing agreements to land owners. Except for the fact that it’s all taking place in virtual space, which was a far-fetched notion just a few decades ago but is now becoming a reality.

By:  Alejandro E. Jordan, Esq.

This article provides a sample framework for the trade of real-estate ownership rights via the “encapsulation” of those rights in a Non-Fungible Token (NFT), as well as NFT participation in the DeFi sector and the potential of providing crypto title insurance, for added confidence and security.  Moreover, this Crypto-talk article will address some of the methods for transacting real estate using blockchain-enabled technologies, including NFTs, as well as the long-term strategy of “blockchainizing” or “NFT-ing” real estate in the United States.

The idea is to keep an electronic version of NFT ownership proprietary papers “on-chain,” where the NFT smart contract can modify the legal entity owner’s identity when the NFT is transferred from a seller to a bidder on an NFT Marketplace, for example. The key is to provide the legal framework that allows the NFT smart contract to make changes to legal documents, as well as the legal framework in the Terms of Use agreements that regulate the creation and listing of the NFT.

After digital collectible NFTs, why are real estate NFTs the next logical step?

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By:  Alejandro E. Jordan, Esq.

The advent of blockchain technology is projected to have a big impact on real estate, the largest asset class by value, which is predicted to expand from $2687.35 billion in 2020 to $3717.03 billion in 2025. Blockchain is the core technology that enables the whole cryptocurrency ecosystem’s value proposition. It’s the technology behind Bitcoin’s security and the reason Ethereum smart contracts have a value. Smart contract developers can use on-chain logic to manage different real estate transactions, goods, and markets utilizing external data inputs and traditional settlement outputs, allowing real estate assets to become computerized as tokens on blockchain ledgers.

Holders can use their tokenized real estate assets on blockchains in interesting ways, such as trading them against reliable benchmarks or providing them as security for a loan, thanks to hybrid smart contracts, which combine the protection of blockchain networks with the richness of real-world data inputs. Furthermore, utilizing an external data source, exotic derivatives products may be produced and paid for on-chain, allowing stakeholders to protect against diverse real estate sector patterns.