For a moment there, crypto was but a dream of nerds with a vision of a free-er future. The time has come for the rest of the world to acknowledge the existence of the blockchain, and all of the bullish, fiery changes that come with it. It's inevitable: the “real world” is colliding with web3, and we’re just starting to see the first dredgings of the aftermath of the supernova of what’s to come. A month from now, this piece will be redundant and dated - that’s just how fast the space is moving. Buckle up.
Web3 is the basis behind the newest iteration of the World Wide Web, creating a decentralized online space based on the blockchain. The utilization of Web3 shows a movement away from Big Tech to “decentralization”, and towards self-ownership of data and tokens (cryptocurrencies, NFTs, etc.).
As Web3 grows in popularity, so does its use in the real world. On Web3, users can not only exchange cryptocurrencies, but they can also make major purchases – such as buying and selling real estate – all while keeping these transactions tied to the blockchain.
In this article, we will discuss the increasing prevalence of Web3 and what it means for tangible investments in the physical world. Keep reading to learn how to prepare for this shift towards blockchain-based transactions and how to ensure the long-term security of your assets.
Buying Real Estate, Golf Courses, Cars – All on the Blockchain
While many investors still show some hesitation towards blockchain-based assets – like cryptocurrencies and NFTs – there is no denying this technology is gaining serious traction in the real world.
An excellent example of this is the recent sale of a five-bedroom home in Florida, wherein an NFT valued at 210 Ether – a USD value of $653,000 at the time of sale – was used to purchase the home in an online auction. This use of the blockchain to enable a major property sale is incredibly significant, not just for the real estate industry, but for the sale and purchase of all big-ticket items.
According to a 2021 Forbes article:
“As users have access to all the information stored in the blockchain, they save a considerable amount of time in obtaining data relating to a property or land — title deeds, land registry, technical information and surveys, co-ownership information, all of it becomes available 24/7, with real-time data and instant validation.”
Blockchain technology has already been making waves for its application to buy and prove ownership of physical art – with one of the largest NFT sales raking in an impressive $91.8 million (USD).
The Continued Importance of the Immutable Ledger
Blockchain technology is enabled through the use of an immutable ledger – an electronic record that cannot be changed. Unlike other electronic databases, like bank accounts or social platforms, an immutable ledger is not owned by one singular company that controls all the data it holds.
Instead, an immutable ledger gives the owner an account with total access and control over their own data. This immutability also prevents alterations or edits to a blockchain ledger, giving the ledger a full transactional history that details where an asset originated, the various transactions it has been a part of, and who currently holds ownership of it.
This is especially important when using blockchain-based assets to exchange for physical assets, where ownership of the blockchain asset will need to be explicitly proven for the owner, and for future buyers.
How to Prepare for Recording Big Ticket Items on Blockchain
As Web3 and blockchain technology begin to play a larger role in our daily lives, it’s crucial to know how to properly prepare for recording and managing your major assets on-chain. We predict that many platforms and firms will begin to adopt blockchain in the months and years to come (think Christies for art, or even a JLL for real estate).
A major consideration is the ownership of your blockchain account, wallet, and assets. While you are alive and well, you will always have access to your blockchain account (so long as you keep track of your keys). Oftentimes, blockchain investors will opt for third-party providers to help them manage their keys and keep them secure and accessible.
However, it is also essential to consider what will happen to your blockchain assets once you pass away. If you do not assign ownership of your blockchain accounts before your passing, your assets can end up completely inaccessible and lost to the digital realm.
This is where Webacy comes in – using our platform and products, you can ensure access to your accounts with a backup wallet, but also create a blockchain will. In this will, you can outline exactly where and who you want your assets to go to following your death. It’s not just a set of instructions: Webacy’s smart contracts actually carry out your directives in a trustless, access-free way.
Our world is becoming undeniably digital.
With the growing popularity of blockchain technology and Web3, it’s more important than ever to consider how this will affect your assets and investment strategy. It’s crucial to plan ahead for your blockchain accounts using your own protection plans, or use a service like Webacy. Your digital estate is now increasingly representative of your physical estate – and your entire legacy. What will you leave behind?