> The other day someone suggested making real estate NFTs.
Looking at the current implementations, it is a terrible idea. But it doesn't mean that the problem can not be solved.
> What happens if the "owner" of some real estate loses their key?
Just spitballing here: take the idea of social recovery further to include the current legal institutions as a backup instead of the main authority. For example, a contract that manages such high-value NFTs could require a set of government-sanctioned notaries who would have permission to transfer the NFT to any new address. So if you are the owner and you lose the key (or you get hacked), you could be made whole by presenting some type of "real world" legal evidence to the notary.
For underlying security, of course. The point is that the ability to also tokenize a real physical asset opens a world of possibilities.
Can you take a collaterized loan on a share of your home from anyone in the world, if you have only the government database?
Can we have a "decentralized AirBnB" where you have can the NFT represents who have access to the house with "just a government database"?
Can you pool the resources from thousands of strangers to form a "REIT DAO", who then go on to invest on a scale that is only accessible for the Vanguards and Blackrocks around?
This would be simply too risky to be even considered by people if we constrain ourselves only to digital assets, but if we can have a system where the institutions work as a safeguard, why not leverage it?
What is the jurisdiction of "Tokenized Blockchain Corp"? What happens if you live on a country that is under economic sanctions? What happens if there is any type of rug pull? What happens if the Corp gets "too big to fail" and its managers corrupt it? I surely don't want to end up with another Tether in our hands.
We don't need to completely disrupt the current institutions, when they are functional and work in the interests of the people. Quite the opposite, when they are functional they are more efficient (time- and resource-wise) than any decentralized system.
Skipping the middleman doesn't solve any of these issues, except for the possibility that Tokenized Blockchain Corp is corrupt. So write an iron-clad contract with Tokenized Blockchain Corp regarding how your house is to be managed, and the courts will enforce it for you.
It can't be Tether because you can see that only one NFT is minted for your house.
The jurisdiction is, of course, where the house is.
The other day someone suggested making real estate NFTs. What happens if the "owner" of some real estate loses their key?