The Evolution Of Digital Ownership - Tokenization, NFTs & WEB3

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15 Mar 2024

Unparalleled Acceleration
The 2000s have seen technology advance at an alarming rate. However, in recent years, acceleration has taken on a whole new dimension with the introduction of blockchain and AI. Although many are still unable to comprehend it, we are standing at the precipice of a monumental shift that will forever change how we store and prove ownership. Blockchain has introduced the world to an entirely new concept.
Tokenization enables owners of both digital and physical assets to prove ownership via a Crypto token. The tokenization of real estate is something that began to garner some attention and traction back in 2019. Today, we are seeing more and more investors moving toward the idea of fractional ownership of real estate via tokenization. It’s important to note that the concept of tokenization is what makes this possible.
Due to the fact that a single property is likely to be fractionalized into thousands of tokens, it enables smaller investors to own a fraction of real estate. For many, this is the only way that they are ever going to own real estate. Another expression of this idea is the tokenization of gold, which is also not entirely new. However, it enables the ownership of a physical commodity via digital proof of ownership.
I, personally, can envision a world where everything is “moving” and being proven across both private and public blockchains. The introduction of NFTs hit the art and creative market in a big way in 2020. However, many were unable to understand the authoritative aspect behind NFTs. For example, an established and well-known artist who minted NFTs would have a credible and reputable reason to associate value with the collectible.
However, what we saw were random individuals minting jpegs and then selling them for exorbitant amounts. Now, to be fair, there is no inherent value behind the production and minting of such collectibles. It’s not the NFT that holds value but the authority behind it. This is a rather simple concept, and yet it is still to be understood by the majority of NFT investors. For example, a set of ETH NFTs could be produced by anyone.
However, if Vitalik minted a collection of ETH NFTs they would hold significant value. Who owns the private keys that minted a particular NFT? This is the question that when answered, provides a clearer indication as to the inherent and associated value. A lot of NFT investors are holding collectibles that will never regain their value, largely due to the fact that they have no true inherent value.
Channels Of Movement
WEB3 is what brings all of this together and enables the “flow” and “communication” of value. The rails upon which all of these advancements are able to move are free of barriers to entry, and other third-party interferences. It’s almost too perfect, isn’t it? This explains why there is such an attack on privacy, non-custodial wallets, and on-ramps. In yesterday’s post, I touched on the aspects of WEB3 that make it so powerful.
When you wrap all of this up into a presentation of what becomes possible, it’s pretty amazing! A real estate investor could spend months trying to offload a property he no longer wishes to own. On top of that, there are a number of other hurdles and hoops to jump through. A real estate investor who has opted for the tokenization model can literally offload a property on the same day he decides to sell it.
In a similar way that Crypto exchanges operate, real estate marketplaces enable investors to buy and sell as they choose. Current models are “clunky” and outdated. Eventually, there will be a flood of assets hurtling toward blockchains, in an attempt to simplify and empower.
Final Thoughts
At the end of the day, all assets can be digitally owned and verifiable. Without WEB3 these ideas are handicapped. They function and operate at their best moving along WEB3 rails. Despite the opposition, there are a lot of upsides and benefits to interacting in a WEB3 world. The breakthrough is too significant to ignore or bury. We saw a similar dynamic with Bitcoin. Eventually, the powers that be could no longer choose to ignore the tremendous breakthroughs Bitcoin and blockchain made possible. This is the future, it’s coming! See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.