House Sold As NFT - The Future Of Real Estate??

Estimated Read Time: 6 min

Hey friends,

Huge welcome back to this latest edition of Morning NFTea! We have some pretty interesting stories in NFT developments from Reddit NFTs to Movie NFTs, so let's just jump into it!

NFT House Sells For $175k

Typically when discussing NFTs and property it tends to be dominated by digital land in Metaverse platforms such as The Sandbox or Otherside, but a three-bedroom South Caroline House is looking to flip that around to utilize NFTs for real-world property too. Roofstock is a real-estate fintech firm that looks to disrupt the real estate market by combining NFTs with physical property, and they recently sold a House for $175,000 USDC on OpenSea. If you're wondering how this actually works, Roofstock LLC takes ownership of the property, and through tokenizing the property you can mint an NFT that represents ownership of the house, therefore holding the NFT gives you ownership of the actual house.

According to Roofstock “chief blockchain officer” Geoffrey Thompson, tokenizing property through NFTs is gaining popularity as it “creates frictionless transactions, simplifies the process, and makes information more readily available.” This is because the blockchain offers a decentralized, incorruptible, and immutable database that gives a fully transparent trace of the property's previous activity. The main benefit of NFT real estate is its potential to connect buyers and sellers while reducing overall fees and costs by cutting out unnecessary intermediaries such as agents. Another benefit of NFT real estate is the ability to have metadata for the traits of the property such as bathrooms, bedrooms, size, build year, and any other data that should be historically tracked and available to potential buyers. This actually isn't the first time we have covered NFT real estate where back in June a seven-story home was listed for 15,000 ETH. But this actual $$ sale further supports how records of ownership kept on a public ledger is a highly valuable prospect for the real estate market, and another perfect case of NFTs being able to disrupt and revolutionize a new industry.

New Solana NFTs Have Enforceable Royalties

It was only in the previous newsletter that we covered Solana's largest NFT marketplace deciding to make creator royalties optional on NFT listings. This raised many questions within the NFT community and from it, Solana has announced a new NFT standard that enforces royalties on the blockchain. Typically, artists and creators set royalty rates through the NFT smart contracts, but some marketplaces choose not to uphold those creator fees in favor of saving the NFT trader money on each sale. Metaplex is the creator of Solana's NFT standard, and through Twitter, they said “We’ve heard you - the community is ready. Metaplex is building a new asset class that will enable creators to enforce royalties at the protocol level by extending the Token Metadata program, which powers 99%+ of all NFTs on Solana”. Metaplex’s tweet thread says they “believe multiple asset classes and behaviors will coexist in the future” suggesting that there could be different NFT standards for different use cases. For now, enforcing creator royalties is a great way to sustain a healthy ecosystem for the progression of NFT projects, and may pressure other blockchains into also considering on-chain enforced royalties.

Reddit NFTs Open 2.5 Million crypto Wallets

It's hard to find a Web2 platform that has not started experimenting with Web3, and for Reddit, their first significant foray was rolling out NFT avatars for your account's profile picture. Reddit's NFT marketplace launched back in July where it required users to set up a Reddit Vault Wallet based on Polygon to purchase and store tokens that could be used to buy NFT avatars of the platform's Snoo character. In doing so, 2.5 Million Vault Wallets were created since launch which is an incredible number considering OpenSea only has 2.3 million active wallets, truly putting into scope the scale of NFT onboarding that Reddit is doing. The social network claims over 50 Million daily active users, so 2.5 Million people creating Reddit NFT wallets shows people's interest in true ownership of their online identity through their unique profile pictures NFTs. What is truly noteworthy about this story that can go unseen, is the significant impact Reddit is making in introducing new users to NFTs at an unprecedented scale, ushering us ever closer to eventual mainstream adoption.

Warner Brothers Releases First Film NFT Initiative

Warner Brothers recently made headlines for its new Web3 Music Label, but now they are doubling down on their Web3 future with a new announcement of the “WB Movieverse”, debuting with The Lord of the Rings Movie Experience NFT. Fans can now purchase the Fellowship of the Ring (Extended Version) 4k UHD film as a multimedia NFT. Through the NFT, fans can watch the film and interact with it in brand-new ways that foster a more intimate and unique connection with the content. General Manager at Warner Brothers Jessica Schell, says “We have a really rich archive of content, and we’re committed to staying on the forefront of new technologies. [Buying the NFT] is designed to be frictionless. When you see the movie, it’s really easy to miss that it’s actually using Web3 or NFTs under the hood. This is for the fans of the franchise. It’s not just for early NFT adopters or crypto fans”.

The 10,999 edition collection ranging from $30-$100 was in partnership with Eluvio, whose network is pitched as a “content” blockchain. CEO of Eluvio Michelle Muson, says “We’ve created a unique blockchain-based protocol and network for content that allows for content to be stored and streamed in a decentralized fashion, where all the ownership is blockchain-controlled”. About the collection, Michelle says the NFT is “something that Warner can build upon, the fans can build upon, [in a way] that really hasn’t existed before. The underlying tech allows the content to evolve. New content can be added, and that can be personalized for the user”. As society transitioned away from physical ownership of media towards online streaming, NFTs are reviving the idea of ownership in a fully digital way that through its dynamic utility can create new unique experiences for the viewer - sounds a lot more exciting than just owning a DVD.

Big thank you for reading this edition of Morning NFTea. We hope you have an awesome couple of days and we will be back soon with some more NFT news, take care!

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DISCLAIMER:

None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.