How Ekta blockchain’s fractional real estate NFT aims to tokenise real world properties

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Investments in real estate can often offer substantial returns in just a matter of years. However, purchasing any property in today’s day and age requires a significant amount of capital upfront. This limits property investments to a select few.

This is something that blockchain network Ekta is looking to change through the launch of its fractional real estate NFTs.Ekta is a blockchain that brings physical assets and communities on-chain. The company is planning a public listing, and by mid-January had raised seed funding and private sales of over $5 million.What are fractional NFTs?Non-fungible tokens (NFTs) are blockchain-backed digital tokens that represent the ownership of an asset. Their decentralised nature means they are secure, one-of-a-kind, and cannot be tampered with or modified.

They guarantee ownership as all essential details of the asset are coded into them and updated as the ownership of the asset changes hands.Also Read | Ukraine junks crypto airdrop, to issue NFTs instead to support armed forcesHowever, an NFT can only be owned by one person and there is currently no scope for shared ownership of digital assets. This led developers to create the concept of fractional ownership. This allows crypto investors to own and exchange a fraction of the NFT.

This can be thought of as owning equity shares of an organisation, where no matter how many shares you own, they entitle you to a proportional stake in the company. Here’s how it is done.How do Fractional NFTs (F-NFTs) work?A fractional NFT is one NFT divided into multiple stakes. It is achieved using a smart contract that splits one NFT into a fixed number of tokens, each of which is linked with the parent NFT.