Faiz is reporting, If you're looking for Information regarding fractional ownership of NFT, then you have landed in the absolutely correct place. This is the Time of Digitalization. And in this digital asset world, non-fungible token Is a trending topic. You may have heard Many inspirational and shocking stories of NFTs. Recently, I read the story in which a nine-year-old Kid earned millions from the NFT. If you want to own a unique digital item on Blockchain this then NFT is a Great way for you. It can be in any form, for example, music, art, and real estate asset that is virtual and there will be more. The question is what happens when NFT price goes too high for the average buyer. So, there is a concept which is called fractional ownership that we need to understand. In this healthy discussion, we are going to talk about it.
Fractional ownership means owning a small portion or small piece of any NFT Sometimes, we are not able to buy the whole NFT So, in this case, fractional ownership comes in. Let's say there's a $1,000,000 worth NFT in the market. So, it is Difficult for the average buyer to buy this much heavily priced NFT So, that means it can be divided into too many shares. And this way, Many buyers can participate in it. You get a percentage of that NFT, and it depends on the amount of your investment. This way, expensive NFTs are accessible for Average buyers who want to invest a small amount. So this is a great concept which allows everyone to participate and gives an opportunity for Retail investors. Means small Investors.
This process depends on the tokenization. As you know, a non-fungible token, or in other words, any digital asset locked to a smart contract, and it split into Smaller multiple tokens. These smaller tokens are available on the market on many platforms, similarly to how you do with Normal NFT.
Now let's talk about the benefits of this model. So, as I said, it is open. Many doors for the small investors. Another benefit of fractional ownership is that Expensive assets can be bought by Small investors. Also, if someone is the owner of a highly expensive NFT, then he doesn't need to wait anymore for it. Because he can attract Many small buyers, and those pieces sell out easily. Now let's talk about the fractional ownership risks.
So fractional NFT can be slow and at the same time, complex. The reason behind it is decentralisation. Because there is a governance vote in this. Also, there is regularity uncertainty. So that's a challenge.
No new technology comes without Challenges. So it is obvious that this new technology faces challenges. However, it is most important to do your deep research on this topic and think more about it. The concept is decent. And in the future, we can see that Fractional ownership will spread its legs. Now it is time to wind up this post, and I'm expecting you to share this post and also share your important opinion because I appreciate good comments. Thanks for being here. Faiz is signing off.
