⚙️2) Need for NFT Technology

The need for NFTs (Non-Fungible Tokens) in the real estate market arises from their potential to address inefficiencies in the traditional real estate sector, such as digital assetization, increased liquidity, enhanced transparency, simplified transactions, and decentralized investment. Though NFTs are mainly known as a technology for representing digital assets, they can also be applied to physical real estate assets, bringing innovation to the real estate market.

1] Digitalization and Ownership Management of Real Estate Assets

- Digital Certification of Ownership

• Transparency of Ownership Records:NFT technology allows ownership records to be transparent and accessible to relevant parties.

• Ease of Ownership Tracking:Blockchain enables the secure tracking of ownership history.

- Counterfeit Prevention

• revention of Forged Documents:Using NFTs for ownership records mitigates the risk of tampered or falsified property documents.

2] Increased Liquidity and Provision of Fractional Ownership

- Increased Liquidity of Real Estate Assets

• Solving Liquidity Problems: NFTs provide a way to easily trade and access real estate assets, enhancing liquidity.

- Provision of Fractional Ownership

• Tokenization of Real Estate Assets:Through tokenization, real estate assets can be divided into fractions, making them accessible to smaller investors.

- Global Investor Accessibility

• Cross-Border Real Estate Transactions:NFTs enable real estate transactions across borders, expanding investment opportunities for global investors.

3] Cost Reduction and Transaction Simplification

- Reduction of Intermediary and Documentation Costs

• Reduced Brokerage Fees:Smart contracts streamline transactions, reducing the need for intermediaries.

• Smart Contracts:Automated, self-executing contracts reduce both cost and time.

- Shortened Transaction Time

• Faster Transactions:Smart contracts accelerate transactions, completing in hours rather than weeks.

4] Enhanced Transparency and Reliability

- Transparent Transaction Records

• Blockchain-Based Transaction Records:All transaction histories are stored securely on the blockchain, accessible to relevant parties.

- Prevention of Real Estate Speculation

• Transparent Price Formation:Transparent records help prevent price manipulation and speculative inflation.

5] Automation through Smart Contracts

- Automated Rental Management

• Automation of Lease Contracts:Smart contracts automate lease agreements and renewals.

• Smart Contract-Based Rental Management:Smart contracts handle payments, renewals, and terminations.

- Guaranteed Contract Fulfillment

• Automatic Execution When Conditions are Met:Transactions automatically complete when the specified conditions are met.

6] Expanded and Diversified Investment Opportunities

- Creation of New Investment Opportunities

• Creation of Real Estate Derivatives:NFTs enable new types of real estate-backed derivatives and investment products.

- Possibility of Diversified Investment

• Risk Diversification:Fractionalized ownership allows investors to diversify risk across multiple assets.

The reason NFTs are needed in the real estate market is that they can greatly improve liquidity, simplify transactions, reduce costs, and enhance transparency in ownership management and transactions through digital assetization. Additionally, fractional ownership enables a broader investor base to access the market, while global investment and automation through smart contracts maximize transaction efficiency. NFTs hold great potential to resolve existing issues in the real estate market and provide a new paradigm for real estate transactions as a powerful tool for transformation.