I have already spent some words about tokens, specifically Security tokens, and I will make a distinction in this article. You can find more here and here.
In this last period, NFTs have been brought into the spotlight; unique, non-replaceable tokens.
The big buzz is mainly due to the speculative possibility inherent in this type of token.
Criptokitties has been the most striking example: digital kittens that can be purchased for a huge amount of money. And for God sake, at what purpose?
And, in the end, what is so special about these kittens?
Nothing. At least on a practical level. On a tech/digital level this was a real conquest.
Through an NFT we can represent anything real in a unique way, as they are irreplaceable.
As we know, going beyond NFTs we find Utility tokens and Security tokens. Security tokens can represent financial products, such as bonds and/or company shares.
Through the tokens (Security, obviously), we can bring liquidity to a company in order to make "sellable" any asset without compromising the integrity of the company.
This possibility, which is offered to us by security tokens, gives rise to a new dimension of crowdfunding: the STO (Security Token Offering).
As opposed to the ICO (Initial Coin Offering) the value of the Security Token is defined in advance as it represents a real asset; while in the ICO, the value of the token is defined foreward according to the solidity of the project and the usual supply and demand balance.
Having reiterated the various functions of the tokens, let's try to transpose their use in real everyday life and, above all, in an environment that can be exploited in their true nature.
Not to represent cats or doodles on a sheet of paper as taught by various tutorials found on the net.
In addition to art, where I talked about in this article, we can use them for assets that we touch every day.
Let's take the real estate sphere: an extremely thriving sector full of opportunities.
These opportunities, however, are not available to everyone.
I remember a few years ago that Timeshares were really trending: a number of investors bought the property and they could rent it on the market or take advantage of the property to spend vacations there or other moments during the year.
At the end of the Solar Cycle, the earnings were divided proportionally to the number of owned shares.
Clearly (I speak of the European regulations) these shares of property were transferable and then selling them was possible to liquidate the position.
Between taxes, property maintenance Timeshares have fallen into disuse due to a rather low profitability, compared to the amount allocated.
Therefore, the only possibility left is to purchase the property on a joint basis and then proceed to place it on the rental market.
In this situation, taxes increase exponentially, and the catchment area that has these financial resources is reduced dramatically.
Let's try to make a digital transposition of this scenario, using with awareness the tokens at our disposal.
- Through Security tokens we can represent a portion of a property;
- Through an NFT we can represent a portion of a property.
In this way, defined the minimum unit of ownership, we offer market liquidity with Security tokens.
In practice, if we assume as minimum unit of ownership the surface, we associate to each square meter a Security token.
While the apartment is uniquely identified by a unique NFT.
Let’s make an example to clarify the situation
A building of 4 apartments is represented by 4 different NFTs, one per each apartment.
Each apartment is 80 square meters , therefore 80 Security tokens are created and each refers to 1 of the four NFTs created.
Clearly each Security token identifies the smallest unit of that apartment, not another.
At this point it is clear to everyone that the market becomes more liquid and accessible for almost everyone.
Whoever has a wallet with the amount of money needed to purchase a single security token, can block the amount and, at the end of the year, receive their share.
Isn't a similar situation extraordinary?
No intermediary, no signature, no need to present yourself in front of Notaries, Lawyers, nobody.
Your own PC, a wallet with some savings in it and you become the owner of one square meter of a penthouse in a skyscraper in Dubai or in a rising neighborhood in Mumbai!
You will not need to travel thousands of kilometers to cross the world. The only journey you have to face is from the kitchen chair to the laptop chair, if one cannot accomplish it through the smartphone!
This possibility that I have just illustrated is the heart of the project of this company
A company just born, but with a precise and achievable goal; moreover, it will use an atypical crowdfunding, but extremely interesting.
Happy NT & Security token to all!!!