As innovative applications with integrated smart contract functionality emerge from blockchain technology platforms, there is an expanding list of digital currencies, tokens and peer-to-peer financial products and services. Abbreviations abound. There are non-fungible tokens (NFTs), which, unlike fungible cryptocurrencies, are “one-of-a-kind’ digital assets stored on a blockchain platform, and can include images, videos, recordings, collectibles and tangible items in the physical world. There is decentralized finance (DeFi), the peer-to-peer transaction infrastructure for tokens and other software applications and contracts designed to replace traditional banking products and services and streamline transactions. Decentralized applications (dApps) are a relatively new technology similar to traditional web applications from a user perspective, but which run on distributed blockchain platforms, such as Ethereum, rather than on a single computer—dApps are typically open source, allowing software developers to improve features and functions quickly, and free from control by any single authority. Smart contract protocols permit dApps to access the blockchain platform and integrate with cryptocurrencies, NFTs and DeFi projects.
By using online cryptocurrency technologies like tokens and blockchains, people could participate in real estate transactions that are too unwieldy in the analog world. Soon, these technologies may let anyone with a few thousand dollars play tycoon and buy a part of a condo or iconic building.
NFTs, or non-fungible tokens—digital certificates that convey exclusive rights to something—is a new concept being applied to real estate, supporters say they will become standard in the industry.
Blockchain technology is a digitized, distributed ledger that immutably records and shares information using software protocols and advanced cryptology. The development of blockchain-based smart contracts—self-executing software algorithms integrated into a blockchain with trigger actions based on pre-defined parameters—has made it possible for parties to automate the process of executing commercial transactions between counterparties in a more direct, trustworthy and efficient manner.