Are Fractionalized NFTs the NEXT CRAZE? All you Need to Know

When Non-Fungible Tokens first came to life, people couldn’t understand what they stand for and couldn’t care less. The concept was hard to grasp, and daily practices couldn’t be seen and understood. When their prices boomed, on the other hand, everyone rushed in and tried to buy any piece of hyped NFT. Today, there’s a new concept that is set to revolutionize NFTs and bring them to the masses: Fractionalized NFTs. What are they and how will they help NFTs have real-world use cases?

Recap: What are NFTs?

In order to first understand what Fractionalized NFTs are, it is important to really know what NFTs are. In short, Non-Fungible Tokens (NFTs) are basically digital ownerships tokens, that run on blockchains that support smart-contracts, such as Ethereum. Their non-fungibility is similar to real-world contracts, where you can’t trade one contract to another, because the “actual content” differs from each other.

As an example, imagine you have a building. You can’t tear it down into two pieces and split it with your wife, as it will lose its value. This building is “one building”. That’s why we call them non-fungible, as you can’t interchange them because their underlying “contract” changes with each one, hence their non-fungible nature.

What are Fractionalized NFTs?

Now let’s take that very same example of a building. Fractionalized NFTs allow you to split “ownership” of the building with your wife, without destroying that building into two. The building stays the same, but now contracts arise giving a specific ownership percentage to you, and another percentage to your wife…perfect, for your wife!

Fractionalized NFTs allow contracts that split ownership of anything digital. This is a game-changer, as traditionally we reverted back to centralized entities to preserve our rights. With FNFTs, no need to go to your ol’ public notary guy as everything resides on the blockchain, 24/7. This also allows for automation and opens up a whole new different field. From investing to real estate, to gaming and art…NFT applications are coming big time!

What are some Real-World applications?

While current crypto trends are a bit hard to predict, fractionalized NFTs are definitely an interesting area to explore. They bring real-world use cases and solve daily problems that occur across all countries. Those applications range from a variety of different facets:

  • Traceable and provable ownership
  • Copyrights and trademarks
  • Easy rights management
  • Liquid market that enables uncomplicated processes
  • Cross-border transactions
  • Automated decision-making (the future is here!)
  • Enabling an open and shared economy

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Rudy Fares

Fractionalized NFT
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