Vesta Equity Reveals Real Estate-backed NFT Platform Built On Algorand (ALGO)

By Kevin • February 15, 2022 8:45 pm • Comments

Vesta Equity is known as a real estate investment company, but has recently made an interesting move that separates it from all the other real estate investment firms.

Just recently, the company announced the launch of a new platform that acts as a marketplace for NFT assets that are specifically backed by real estate.

In order to manage the transactions of these NFTs, the firm confirmed that the solution would be built on top of the Algorand (ALGO) blockchain due to the speed of the ALGO network where NFT transactions can usually clear within four seconds along with having very low fees.

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This move into the NFT space also coincides during a time where these is a boom in the housing market where the average sale has gone up almost 17% in a single year.

TheBlockCrypto reports:

Similar arguments have been made before by crowdfunding players in real estate, however the use of NFTs has been brought into play here due to the speed of execution on Vesta’s blockchain of choice, Algorand.

Carpentier says the choice came down to the fact that Algorand is immune to forks, gives instant finality on sales, which usually clear within four seconds, as well as having low fees.

The platform is looking into future models where an NFT could be used to buy an owner out of their mortgage or constructions for first-time buyers looking for options other than debt financing.

“The model will evolve and adapt to scale-up to other use case applications,” Carpentier said.

Vesta expects to have spread across the US within 12 months, after an initial launch in California. Properties in a number of other states will also be available on the platform on launch.

“There will be an education process with homeowners where we will have to explain to them the proposition,” said Carpentier.

NFTs are typically used within the digital asset space so for a company to look to use NFTs for real world applications such as this  will truly show the true potential of the technology.

Algorand’s design also seems to perfectly fit this use case as the blockchain was originally created in order to enable a seamless transition from traditional finance to a decentralized future.

It’s reputation as a stable platform in the space also makes it one of the main preferred networks by companies looking to transform the home equity market.

As the transformation in this market continues to grow, Algorand seems to be in a likely position to be able to take advantage of that growth.

PRNewsWire reports:

To date, NFTs  have been focused largely on digital assets. Vesta Equity directly couples a real-world, tangible asset and established values with the advantages of digital distributed technology.

Vesta Equity developed its NFT platform and marketplace on Algorand because it is purpose built as a fully decentralized, scalable, and secure blockchain that surpasses all other platforms thanks to its novel pure proof-of-stake foundation and its focus on enabling the transition from traditional finance models to the distributed future.

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