Second real-world property sold as an NFT in Alabama
Roofstock announced another sale of a real-world house in Alabama at $180,000 as an NFT, paid in USDC via the Ethereum network. The sale happened a few months after the company made an iconic sale in South Carolina.
Roofstock creates new dimensions through NFT
In an event seen as a way of incorporating NFT brokerage in the real-world arena, Roofstocks has advanced on its plan to break the ceiling in the NFT market. Roofstock, which boasts of controlling digital real estate through selling single-family rental (SFR) houses, announced the sale of a house in Alabama through its NFT marketplace, Roofstock onChain (ROC). The rental house was sold through an NFT for $180,000 in the form of USDC, as indicated by CoinDesk through a tweet.
ROC utilizes NFTs as a mechanism for marketing and settling its transactions. Developers used Origin Protocol, one of the initiators of Web3, to generate a marketplace for NFT adaptable in the Ethereum Blockchain to facilitate easy trades.
Incorporating the Teller Protocol enables the ecosystem to have a robust capability of integrating an asset-based Decentralized Finance (DeFi) that facilitates credit via USDC Homes.
Stretching NFT capabilities
The two sales have happened at an interval of a few months, raising hope for incorporating the model across many sectors of the real estate market. According to ROC’s Geoff Thompson, the company was “happy to create innovations through blockchain technology to improve the real estate industry.”
Sanjay Raghavan, ROC’s Web3 initiative head officer, added, “the flexibility of the asset-based DeFi system gives the purchasers and vendors an upper hand in achieving safe and transparent settlements on rental properties.” Blockchain technology allows the real estate transaction method to become better than traditional dealings.
How the trade is made in ROC
Roofstock on-chain packages houses in the form of non-fungible tokens (NFTs) by converting every house into a limited liability company. Using the Ethereum network, each limited liability company is shrouded in an NFT known as “unique Home onChain.” The process starting from payment, title ownership, and all other engagements, happen in a peer-to-peer way through the Ethereum network. The transfer occurs without a glitch through NFT on the Ethereum chain.
Buyers are also eligible to get a loan of up to 80% through USDC Homes, a leading DeFi platform driven by Teller Protocol. Data utilized by USDC Homes comes from its partnership with data providers to calculate the affluence of the lenders.
Once a user gets a loan approval through Teller, the user can purchase property through USDC
Homes. The USDC Homes protocol automatically uses the funds borrowed to buy the limited liability company NFT. The purchased house is then put in the escrow crypt, which stays pending until the user dispels the amount, including interest.
The bottom line on real estate NFT
The brilliant growth of NFTs in the crypto industry gives several sectors the appetite to incorporate them. Traditional industries have started to embrace devolved solutions through web3. Using NFTs in real estate will lead to inexpensive, fair, and straightforward dealings, as acknowledged by Origin’s co-founder, Matthew Liu.