NFTs continue to affect many sectors, and this popularization opens up new opportunities and reveals new directions for blockchain technology.

Recently, the real estate industry has shown interest in blockchain technology as it opens up opportunities for fractional ownership, crypto-supported mortgages and other unique ownership, financing and payment models.

Here are some real estate-focused blockchain projects that aim to integrate decentralized finance, cryptocurrency payments and non-fungible tokens (NFTs) into the sector.

Propy is the largest real estate-focused protocol in the cryptocurrency market that focuses on automating home purchases, accelerating and securing the closing process.

As the first company to launch NFT real estate in 2021, Propy made a big splash at a recent US NFT auction by selling a home in Tampa, Florida for 210 Ether (ETH) worth nearly $ 650,000.

In addition to providing a bearer certificate of ownership, real estate NFT generated through Propy can also be used as proof of collateral for crypto-based lending and borrowing.

Milo offers cryptocurrency-based mortgages
When it comes to repaying mortgages, crypto holders currently have to choose the tokens they want to redeem, as well as go through a taxable event where there are several options to pay off a mortgage with cryptocurrency.

Milo is a Miami-based fintech startup that claims to offer the world’s first “crypto loan”, which allows customers to use Bitcoin (BTC) as collateral for a 30-year loan.

Once launched, the service will be open to US and international customers looking to purchase real estate in the United States.

The company has already processed several loans in the current Early Access phase, but interested parties are encouraged to sign up for the waiting list.

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The website is moved to DeFi
Evidence of the growing popularity of real estate-focused projects in the blockchain ecosystem can be found by looking at the many projects that came on the scene in 2022.

Vista Equity is a recently launched venture that aims to be the world’s first peer-to-peer marketplace for real estate-backed NFT assets.

Vesta Equity’s goal is to allow homeowners who own their homes to access the equity in their homes through coding. The company said that token holders would then be able to sell some of it as a fork-shaped NFT.

Property owners usually use their capital through refinancing or selling, and coding solves this problem by giving investors a simplified way to invest in real estate.

QuantumRE is a similar project that has just started. Like Vista Equity, QuantumRE’s goal is to connect homeowners with investors to help homeowners access debt-free financing and access to residential real estate.

To do this, QuantumRE assists in the negotiation process of Equity Agreements (HEAS), a type of financial instrument that allows homeowners to receive a lump sum of equity in their homes without monthly payments, interest or additional debt.

The agreement can be settled by selling the house, refinancing or renewing the agreement. By creating a liquidity and trading platform for HEA, QuantumRE maintains a secondary market for HEA that can be converted to tokens and decomposed into fractions.

QuantumRE has announced that the first segmented HEAs will be introduced on the platform during the first quarter of 2022.

It is interesting to note that both Vista Equity and QuantumRE are launching their products on the Algorand blockchain, citing the network’s higher processing speed and lower gas fee compared to the Ethereum network.

Source: CoinTelegraph