The potential applications for blockchain make it one of the most exciting technologies in our modern environment. In fact, blockchain’s continuous capacity to overhaul and improve traditional processes has pushed it from being considered an emerging niche technology to an established part of how we conduct day-to-day business. One of the industries that blockchain is already revolutionizing is real estate. Blockchain’s decentralized ledger technology is ideal for transactions involving digital assets; so, how can you sell your home as a digital asset? Let’s find out.
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What is a Digital Asset?
Generally speaking, a digital asset is anything that is created and stored digitally, is identifiable and discoverable, and has or provides value. In the traditional sense, data, images, video, written content, and more have been considered digital assets with ownership rights.
The world of digital assets is growing, though, and we’re starting to see aspects of our daily lives becoming increasingly digitized. For evidence of this, look no further than money—in fact, as of 2021, 97% of the money in circulation is from checking deposits, meaning we’ve almost universally moved on from paper money. The emergence of blockchain has let us imagine what else can be classified as a digital asset, real estate has proven to be one such possibility.
How Do You Sell a Home as a Digital Asset?
Digital assets are no longer just the files kept on a computer. The emergence and prevalence of ecommerce has underscored this fact. Think of it this way: when you buy a book in a store, you’ve bought the book itself at checkout. If you buy the book online, though, what you really pay for at checkout is a digital representation of that book: you don’t have the tangible book in your hands, but you still own a copy because you have bought and paid for it.
As opposed to a brick-and-mortar store where you leave with your property in your hands, when you make an online purchase, you can’t physically show your friend your new purchase. Yet we still say we’ve bought a new book.
When the shipped book arrives and you open the package, you subconsciously trade your digital representation of the book for the physical book.
Making your home into a digital asset makes the homebuying process faster.
This is largely how transactions including digital assets have been conducted in the past: with small, low-value items. What’s emerging now is a market in which we can trade high-value assets like cars, boats, and, yes, houses. How?
This leads us to digital real estate. While there are several working definitions of what “digital real estate” is—some attribute it to metaverse purchases; others use it to refer to buying physical real estate through a digital asset. In this context, we’re using the latter. Through a tool like Millennial Blockchain’s Millennial NFT Order Form, you can tokenize your home’s ownership as a digital asset, and have it recorded on the blockchain (which we briefly explain in this blog). This allows you the freedom to transfer ownership of the home much more easily.
What are the Benefits?
There was once a time when we wondered what the benefits of ecommerce really were, and many thought it little more than a fad and a product of its time. In 2023, ecommerce is expected to constitute nearly one-quarter of global retail sales.
The comparison between ecommerce and digital real estate is warranted because not only are attitudes toward digital real estate in the early 2020s not too different from the aforementioned attitudes towards ecommerce in its early days, but the process of digital real estate is little more than the next natural evolution of ecommerce. With this being the case, it shouldn’t be surprising that tokenizing real estate as a digital asset brings with it similar benefits as ecommerce. Additionally, tokenizing your real estate allows you to securitize assets, both traded and non-traded. Other benefits include increased liquidity, faster settlement, lower cost, and reduced risk.
If you want to learn more about digital real estate and how you can get started with making your house a digital asset, contact Millennial Blockchain; when you combine our expertise in traditional real estate with the revolution that blockchain is bringing to real estate, you are the beneficiary!
