#blockchain #blockchainelementary #nft
Today, we are going to start a series of articles, describing some aspects connected with NTFs and blockchain technologies. It is aimed at a wide audience, starting with complete beginners for whom it’s going to be the first encounter with the unique NFT world. We also welcome those, already familiar with crypto and NFT worlds, but eager to participate in discussing ins and outs, problems and their solutions.
Having returned from the last regatta, I noticed the NFT project about Belugas which I found quite interesting. NFT’s were drawn by a 14 year old girl, created on Solana blockchain and successfully sold on the Alpha Art marketplace. So, I considered to create a project, which on the one hand would combine the tasks of real business on creating and managing a membership club, and on the other hand would be based on web3 and blockchain technologies.
I started with investigating the NFT market itself not only to get a clear understanding of the situation in general, but also to see in what direction blockchain is developing and what new technologies have recently appeared.
When I discussed this topic with my friends, who are not from cryptoworld, although they are IT specialists, I found out that even they had no idea what NFT is. I decided not only to develop my own project but also to acquaint everybody with this fascinating world of NFTs. So, quite naturally, the first question we will cover will be what NFT is.
Basically, it is a unique record on blockchain technology, which shows ownership of this or that resource, which can be both electronic and real.
Let’s try to understand what NFT is on the example of commonly known activities, one of which is operations with the property ownership records. It is a good example, because property exists, as a rule, for a very long period of time and is passed from one person to another.
These records are stored in RICS (REAL ESTATE REGISTRATION AND CADASTRE) for a long period of time, as after realty has been built, it can exist for decades and even centuries as well as records about its ownership.
It is already so, but the current record about owning realty is stored not in blockchain but in RICS. At the same time, this information can be easily transferred into the blockchain. If it was stored in the blockchain as an NFT token, this token could be sold. And a new person, confirming their owning this token, could legally prove owning this realty.
Taking into account that all transactions with NFTs are recorded in blockchain, one can trace who has owned this realty since token was issued, in other words, who bought and sold it. If such transactions took place, it is easy to monitor which publicly available marketplaces were used, and even the price at which realty was bought and sold each time.
Let’s view the whole procedure on the following example step by step:
As we see, owner 88888888 signs the transaction on transferring property. Thus he/she loses the right to own NFT (and the house).
In terms of realty the advantages are obvious: blockchain records can not be forged, because they are stored on many computers all over the world and all transactions are transparent and can be traced by anybody who wants to buy this realty.
Also, the last but not the least is the simplicity of its purchasing in the form of NFT. You just pass this record to a new owner, having proved it with your digital signature and place the record of this transaction into the blockchain.
Of course, there are a lot of aspects, both technical and legal, but we will discuss them in our next articles.