> could be handled this way more cheaply than it is now
I don't see how that's possible. Right now, at its core a real-estate title is a row in a database managed by the local government (whether a row in sql, a row in excel, or a row in a physical document).
That system, with a centralized way to ensure it is unique etc, is strictly cheaper than any blockchain / NFT can be for storing that same row of data.
The reason real estate titles are expensive now is that there are significant legal burdens and human overhead on top of this database row.
NFTs can't be used like a real estate title unless we also add the same legal frameworks and human processes on top of them. The only bit the NFT actually replaces is that database row, not the expensive other stuff.
Now, you might claim "ah, but with NFTs you may be able to cut out some middle-men. If the token is legally binding, then you can transact directly and skip a lot of mess". But, of course, we could build that _already_ with the existing system by letting the owner of a row in the existing sql/excel/paper database digitally sign a statement saying "I transfer this ownership to X, this is legally binding". If we can get the law to recognize NFTs, then getting them to recognize this cheaper, far simpler, cryptographic operation would be both cheaper and easier.
... Or that's my take I guess. I'm curious to hear yours though!
Do you think an NFT-based real estate ownership system will be cheaper because we'll rebuild the system from scratch, and rebuilding the existing system without NFTs would be similarly cheap?
Or is there a fundamental reason NFTs are cheaper here than building the same thing on top of a centrally managed government-owned database?
I don't see how that's possible. Right now, at its core a real-estate title is a row in a database managed by the local government (whether a row in sql, a row in excel, or a row in a physical document).
That system, with a centralized way to ensure it is unique etc, is strictly cheaper than any blockchain / NFT can be for storing that same row of data.
The reason real estate titles are expensive now is that there are significant legal burdens and human overhead on top of this database row.
NFTs can't be used like a real estate title unless we also add the same legal frameworks and human processes on top of them. The only bit the NFT actually replaces is that database row, not the expensive other stuff.
Now, you might claim "ah, but with NFTs you may be able to cut out some middle-men. If the token is legally binding, then you can transact directly and skip a lot of mess". But, of course, we could build that _already_ with the existing system by letting the owner of a row in the existing sql/excel/paper database digitally sign a statement saying "I transfer this ownership to X, this is legally binding". If we can get the law to recognize NFTs, then getting them to recognize this cheaper, far simpler, cryptographic operation would be both cheaper and easier.
... Or that's my take I guess. I'm curious to hear yours though!
Do you think an NFT-based real estate ownership system will be cheaper because we'll rebuild the system from scratch, and rebuilding the existing system without NFTs would be similarly cheap?
Or is there a fundamental reason NFTs are cheaper here than building the same thing on top of a centrally managed government-owned database?