Ommniverse Fractional NFT marketplace enables users to divide an NFT into multiple fractions, reducing the barrier to entry for investing in real-world assets.
While nonfungible tokens (NFTs) are currently suffering in the bowels of a bear market, some are using this time to build and develop new concepts with the technology.
One such new concept is fractional NFTs — an iteration of NFTs that enable multiple investors to own a piece of a single token.
These NFTs differ from regular NFTs in that they employ smart contracts to fractionalize the token into a number of parts predetermined by the owner or issuing organization, who then set the minimum price.
When applied to real-world assets, these NFTs provide an interesting use case for investors who plan on owning valuable real-world goods.
Ommniverse creates an advanced ERC1155 blockchain-based Fractional NFT marketplace to spread the cost of asset ownership over a wide range of users, making it possible for a group of investors to own a piece of a larger asset.
In the other words, Ommniverse is a metaverse-focused blockchain platform that can enable more people to reap the benefits of asset ownership while reducing the amount of upfront capital required per user, creating more inclusivity for users who would otherwise have been priced out.
Ommniverse also added the tokenized ownership concept within the Ommniverse ecosystem. So, NFTs tokenization is a way for users to fractionalize real-world assets. However, Ommniverse fractional NFTs provide a new way for investors to divide the cost and transfer ownership of particular assets.
MORE ACCESSIBLE ASSETS
Accessibility is one of the major benefits of NFT fractionalization since it’s more affordable for investors, thus reducing the barrier to entry for owning certain assets.
The collective ownership that comes with Ommniverse fractional NFTs allows a group of investors to own assets with traditionally high barriers to entry. For example, owning real estate or art pieces requires investors to meet particular requirements, whether a certain level of net worth or certain legal requirements.
By using Ommniverse fractional NFTs, these hurdles could potentially be bypassed by the average person.
No matter whether you are a builder, a collector, or a consumer, with fractional NFTs, you can co-own any fragment of an art piece or an NFT project you work on. Or it could be something entirely different, where ownership is verified by an NFT (e.g., real estate). Think of it as an exchange-traded fund, only without intermediaries and management fees. I think it’s a beautiful concept, fully worthy of being called the new era of the internet. The era of co-creating and co-owning.”
This accessibility could also bring additional investors into the blockchain space, Asif Kamal, founder of the Web3 fine art investing platform.
Ommniverse Fractional ownership platform is the way forward to enhance the size of the market massively and helps adoption and accessibility to a much wider audience to invest in the asset class more simply and in a much easier way.
WHAT ARE THE USE CASES OF OMMNIVERSE?
The gaming industry & real estate is a popular use case for Ommniverse fractional NFTs, and the underlying blockchain technology provides an additional layer of transparency. For example, users can view previous buyers and investment activity via the blockchain explorer.
The usual case that everyone’s quite keen on right now regarding Fractional NFTs is the potential for an individual to transfer ownership of game assets and real estate (an IRL asset) — storing the information on the blockchain and it is transferring seamlessly and immutably.
Owning a fraction of an NFT that represents a real-world asset, investors can cash out of their crypto holdings without ever leaving the decentralized finance ecosystem entirely. Now, the hype focuses on real estate, but these fractionalized high-involvement goods could be very interesting in the manner of watches, paintings, boats, planes, and more.
Play-to-earn gaming is another use case for Ommniverse fractional NFTs, enabling multiple players to purchase expensive in-game assets collectively. In-game NFTs can become very expensive due to demand and enabling players to split the cost can make it easier for them to use those same assets. For example, the P2E NFT games and more Ommniverse are currently testing the idea of fractionalized NFTs by selling fractions of the rarest Ommniverse NFTs.
BARRIERS TO ADOPTION
While Ommniverse fractional NFTs may make it easier for people to invest in certain assets, market conditions could potentially interfere with their adoption.
Given the market right now, though, we’re either going to see more creators and marketplaces utilizing these fractional NFTs and gain popularity through those mediums, but if things don’t change, I doubt fractional NFTs will evolve much further, for now at least. Who knows what the market will look like in the next three months, let alone three years?
Regulators and lawmakers could also slow down adoption. Since fractional NFTs let people own a fraction of an asset, they could be classed as stocks by the United States Securities and Exchange Commission (SEC).
The success of Ommniverse fractional NFTs in allowing investors to reap benefits from real-world assets also depends on whether regulations operate in tandem. For example, dissonance will occur if fractional NFTs and traditional title deeds pose competing legal claims to real-world assets.
Due to the uncertainty behind the taxation and the legal status behind fractional NFTs, temporary ownership could be a safer bet for the short term.
If you look at it closely, Ommniverse fractional NFTs represent the very essence of the Web3 concept. We call Web3 the next era of the internet for a reason: decentralization, security, ownership, and creation without intermediaries are among its fundamentals. Everyone who shares the vision, skills, and expertise can co-create and co-own the new reality and be a part of many projects.
For more details, you can Connect with Ommniverse Social media platform and developer community and ask more questions before entering into Ommniverse.ai