What’s the first thing that comes to mind when we think of buying a piece of property? The long and tedious paperwork, right?
In addition, there are many cases in which people become victims of property fraud because of false property papers.
The issues in traditional property acquisition systems made it clear that the real estate sector needs a change.
NFT (non-fungible token) is the technology boom that has the potential to solve all these problems related to property acquisition. By taking the interoperability and transparency of NFTs into account, nowadays people are converting their property assets into NFTs.
The adoption of NFTs in real estate fuels the demand for the NFT real estate marketplace where people can buy and sell their NFTs.
If you want to develop an NFT marketplace for real estate but are confused about where to begin, then this blog is meant for you.
So, let’s get started.
What is NFT in Real Estate?
NFT real estate marketplace can be referred to as the online platform where buyers and sellers can collaborate with each other to transfer the ownership of virtual property.
Still, confused about what is NFT in Real Estate? Let’s take the help from the following examples;
Suppose, you own a plot in the real world. You can convert your plot into NFT by binding all the papers of property into a smart contract. You will also need some permissions and legal work to be recognized by the government.
After all of these processes, you can list your plot NFT on the real estate marketplace. The interested buyers will bid on your token and once the deal is confirmed, a smart contract will be signed between you and buyers to prove the authenticity of the deal. The seller will receive the payment in the form of cryptocurrency upon successful completion of the deal and ownership of the plot will be transferred to the buyer.
This is what NFT is in real estate.
Since non-fungible tokens are backed by a tamper-proof technology blockchain and each token is associated with a unique value there is no chance of creating two NFTs for the same plot.
Top Real Estate NFT Marketplaces
Now let’s get acquainted with a few of the top Real Estate NFT marketplaces;
1. Decentraland
Decentraland is a real estate NFT marketplace governed by the Ethereum blockchain where users can buy and sell virtual plots of land to build their own environment.
To be put into simple words, Decentraland is more like a virtual reality-based video game but it is more close to reality since it involves the ownership of assets similar to the real world.
In this virtual world, users can buy a plot of land, and then they can create scenes, and artwork, according to their imagination.
Decentraland is inspired by real-world concepts and makes use of the emerging technology metaverse to live in a virtual world built according to their imagination.
2. OpenSea
OpenSea is one of the world’s biggest NFT marketplace that not only allows trading for real estate assets but also includes games, music, art, and so forth.
There are two different ways through which you can trade real estate assets on OpenSea. Either you can buy real assets for a fixed price or you can take part in auctions where buyers make different offers.
OpenSea real estate NFT marketplace was involved in the first real house sale via NEFT.
3. Polka City
Polka City is a fully autonomous contract-based NFT platform for trading virtual locations.
Polka city marketplace is equipped with a user-friendly interface to make it easy for users to get started with the platform. At the time of signing up, the users have the option to choose the type of investment they prefer. Also, there is no need for a blockchain wallet to be involved in the buying and selling process of NFTs.
Technologies Uses to Create an NFT Real Estate Marketplace
Developing an NFT marketplace for the real estate sector requires the following:
- Blockchain platforms
- Storage platforms
- NFT standards
- Front-end framework
Blockchain Platforms
Blockchain platforms are the foundation for the development of blockchain-based-application. Since non-fungible tokens are also based on the blockchain, it is a must to opt for a blockchain platform.
Here we have walked you through a quick overview of the different platforms that can be used for non-fungible token marketplace development for real estate:
1. Ethereum
Ethereum is a decentralized, open-source blockchain platform that is widely favorable for developing the NFT marketplaces and non-fungible tokens themselves. The platform is powered by its own cryptocurrency system known as Ether (ETH). The biggest advantage of Ethereum is that it never goes down which means your NFT marketplace will always remain working.
2. Flow
Flow is the next-generation fast, open-source, and decentralized blockchain platform that is easy to use but powerful enough to allow the development of a complex NFT marketplace.
The blockchain platform is written using easy-to-use programming languages to facilitate the developers to create DApss with ease.
4. Tezos
Tezos is yet another decentralized and open-source blockchain-based platform that is primarily used for deploying the smart contracts that govern the NFL marketplaces.
Tezos is designed to be compatible with the Web3 revolution to allow users to develop future-ready digital solutions. Tezos blockchain is powered by the proof-of-stack algorithm which is known to be energy-efficient.
5. Cardano
Cardano is an open-source, and decentralized public platform that is governed by proof-of-stack consensus management. The blockchain platform gained worldwide popularity for offering the next level of security and sustainability. In addition to NFT, NFT marketplaces also offer support for the development of other digital assets based on blockchain technology.
Storage Platforms
An NFT storage platform is used to store large off-chain files and to create permanent immutable links in transactions. Here are references to a few of the most popular storage platforms that can be used for blockchain platform development:
1. IPFS
IPFS is the abbreviation of InterPlanetary File System (IPFS) is a peer-to-peer storage system for sharing files in distributed file systems. The best thing about the IPFS is that it is completely free for everyone. Till the time the IPFS storage platform has reached the total capacity of storage, data is 2.5 billion gigabytes.
2. Filecoin
Filecoin is a powerful, and dynamic decentralized storage network that is capable of storing the important information of your NFT marketplace.
3. Pinata
As one of the most popular platforms for uploading and managing IPFS files, Pinata provides secure and verifiable files for NFTs.
NFT Standard
ERC-721
ERC-721 is a free and open-source NFT standard based on the Ethereum blockchain platform that governs the process of NFT marketplace development.
ERC-1155
ERC-1155 non-fungible token development standard is an ideal choice for developing the fungibility-agnostic and gas-efficient token contract.
FA2
FA2 nft standard is built on the Tezos blockchain platform that is used for identifying two token aspects i.e. token type and permission standardization.
dGoods
dGoods is a free and open-source NFT standard that is responsible for the virtual representations of items.
TRC-721
TRC-721 is the NFT standard based on the Tron blockchain platform and is responsible for issuing non-fungible tokens.
Front-end Frameworks
Vue
Vue is a front-end framework built using the combination of multiple programming languages such as HTML, CSS, and JavaScript.
Angular
Angular is yet another free and open-source front-end development platform for creating intuitive user interfaces for NFT marketplaces.
React
React is a free and open-source JavaScript framework used for developing user-friendly UI components.
Final Take: How to Develop Your Own NFT Real Estate Marketplace
By taking into account the continually growing popularity of NFT properties, it is a smart decision to invest in NFT marketplace development as it can reveal better revenue opportunities.
NFT marketplace development is a complex process, so it is best to have the assistance of professionals to yield favorable outcomes. NFT development companies are employed by seasoned NFT developers who possess a deep knowledge of NFTs and how they work. By understanding your needs, the NFT development company will propose the best strategies to develop the NFT marketplace for real estate.
If you are unsure which NFT development service would be the best choice for you, speak to our NFT consultant who will be able to guide you through the process?
Frequently Asked Questions (FAQ)
1. How Can I Choose The Best Real Estate NFT Marketplace Development Company?
The selection of the NFT development company should be made on the basis of the portfolio and client testimonials of the company. It is best to choose a company that has previous experience in NFT development services and whose clients speak highly of them.
2. How Much Does It Cost To Develop An NFT Marketplace For Real Estate?
The cost of NFT marketplace development is defined on the basis of the feature, complexity, and selection of NFT developers. Since all of these factors vary from one project to another, the cost estimation can’t be done without the help of NFT developers.