The conversion of real estate into NFTs and F-NFTs is a new trend of the digital age. This process provides various advantages to property owners. First, the digitization of real estate facilitates the transfer of ownership. Blockchain technology offers secure and transparent transactions. While NFTs represent individual properties, F-NFTs divide the property into pieces. This allows investors to invest in real estate with small amounts. It also provides liquidity to the real estate market. The process creates new opportunities for property owners and investors. This innovation has the potential to transform the real estate sector.
What are NFTs and F-NFTs?
NFTs are tokens that represent unique digital assets. They exist on the blockchain and cannot be copied. They digitize assets such as works of art, collectibles and real estate. F-NFTs are a fragmented version of an NFT. In this way, investors can get small shares of large valuable assets. NFTs and F-NFTs bring property rights to the digital world. In the real estate market, these tokens offer new investment opportunities. NFTs and F-NFTs increase liquidity and make the market more accessible. These digital assets transform the understanding of ownership and investment.
The Process of Converting Real Estate to NFT
The process of converting real estate to NFT consists of several steps. Tokenization of real estate assets means converting the value of property or tangible assets into digital tokens on the blockchain. The conversion of assets such as real estate, art or basic needs into digital format through tokenization provides significant benefits for users interested in long-term investments with greater profits. Therefore, this process also increases usability and liquidity by allowing fast trading of these assets and ownership of fractional shares.
First, the first property is purchased by Egemoney. This means that it is ready to be sold as NFT in the system.
The valuation price and the released price (total) are determined. Then, all these prices are divided into fractions. It is possible to find the F-NFT price by dividing the price by the number of fractions.
Each fraction is burned into tokens. NFTs and EGEMs are not minted at the same time. NFTs are minted and if an owner of an NFT or FNFT wants to do so, they can burn their FNFT and mint EGEM Tokens at the same time. However, EGEMs are only produced by minting NFTs or FNFTs. So it is not possible to produce from scratch.
EGEM Tokens can be burned into NFTs or FNFTs.
What Does Minting and Burning Mean?
The term Mint is used in the cryptocurrency world. It refers to the process of creating a new digital asset. Also, it refers to adding it to a blockchain. This process involves converting a digital asset into a unique. And immutable token that can be bought, sold and traded.
Burning a cryptocurrency refers to the process of transferring the private key of a cryptocurrency or token to an inaccessible wallet. The cryptocurrencies sent to the inaccessible wallet for the cryptocurrency burning process cannot be accessed again after the transfer process is completed. The cryptocurrencies transferred for the burning process are deleted from circulation after the transfer process. Thus, cryptocurrencies that are permanently deleted from circulation lead to a decrease in the total supply.
