Deep Dives

How Proptee use NFTs

Saad Ahmed, Benedek Toth

• 2 min read
How Proptee use NFTs

This article is about how Proptee uses NFTs and blockchain technology to make real estate investing truly global and effortless. We're building a future, in which everybody has the ability to create wealth from real estate and achieve financial freedom.

This article covers:

  • Definition of Non-Fungible Tokens
  • Real estate NFTs and their rights on Proptee
  • Why is it a good solution?

Real estate NFTs and their rights on Proptee

Traditional cryptocurrencies like Bitcoin are fungible, meaning that every one unit of BTC is exactly the same as another unit of BTC and they can be exchanged for one another with no further considerations.

On the other hand, tokens can be non-fungible too. NFTs most commonly represent a digital proof-of-ownership of an underlying asset. In layman's terms, each NFT is unique, they can be one of a kind or limited copy of many. Up to this point, NFTs typically represent ownership of digital assets, such as artwork, GIFs, videos and audio. However, NFTs can be used for real-world assets too, such as real estate.

Buy and sell NFTs the same way you buy any other cryptocurrency.

Bored Ape Yacht Club NFT collection

Real estate NFTs and their rights on Proptee

Today, transferring real estate ownership is expensive and labour intensive. Proptee is using NFTs to represent digital ownership of real estate assets. By issuing or minting 10,000 tokens (NFTs) for each property, we can sell fractions of properties to a large number of investors. Once these tokens are purchased, owners can sell them to anyone at any time. Creating a fully functional secondary market.

Anyone can buy tokens without requiring a large sum of money or a middleman, at the click of a button, from anywhere in the world.

Each NFT  also has a built-in right, to receive monthly rental rewards from the property that each one represents.

Proptee app

Why is this good?

Here are some of the amazing reasons why we're using NFTs at Proptee:

  • Proof of ownership- NFTs are on a blockchain network, so they can link ownership to a single account proving that you own that asset.
  • Authenticity- The immutability of the blockchain ensures the legitimacy of the non-fungible tokens since each NFT is linked to unique data.
  • Ease of access - Anyone can get access to the property market at any time. You will be able to access your portfolio from anywhere in the world.
  • Smart contracts- NFTs are built on smart contracts this makes the transfer of ownership simple. This also means that rent rewards will automatically be distributed to the token owner, even if the token is not held with Proptee.

If you found this interesting have a look at Nothing Fancy issue #4 to see how the metaverse uses NFTs for digital property.