We feel NFTY offers a more secure and efficient way to record property ownership than traditional land registry methods.
When NFTY mints an NFT on Cardano, it’s done so using a specific policy ID, as opposed to a smart contract. This binds the NFT to the rules and details set in that unique policy. The policy ID also serves as a unique identifier for that particular type of token, allowing anyone to verify the authenticity and ownership of the NFT.
As each property on the NFTY platform is represented by an NFT collection with a unique policy and policy ID, when the fractionalisation of the property is complete (for example 100 “pieces” of a property with an initial sale price of £1000 each are created, for a £100,000 house), the policy is irreversibly locked to protect the value of the asset.
This prevents additional NFTs from being created, diluting the value, or changing the details of the property, such as the land registry number, address, and physical details such as floor area.
The policy ID of each unique property is shown in the listing on the marketplace and can be independently verified online prior to purchase, adding even greater security for the buyer.
The use of NFTs for property transactions provides an immediate, transparent and immutable record of ownership and history. The information is permanently recorded on the blockchain and cannot be altered, helping prevent issues such as fraud.