Physical Item NFTs & Fractional ownership.

Why is fractional ownership becoming more and more popular?

Fractional ownership of collectibles is an advantage because it allows people to purchase a portion of an item that may otherwise be too costly for them to purchase in its entirety. This can be beneficial for both buyers and sellers. For buyers, fractional ownership eliminates the need to pay a large sum of money upfront, and it also allows them to diversify their portfolio by owning a piece of multiple collectibles. For sellers, fractional ownership allows them to increase their potential customer base and liquidate their assets more efficiently. Additionally, fractional ownership can also provide a means for collectors to receive a return on their investments by potentially increasing the value of their collectible over time.

Why Use Blockchain to represent fractional ownership?

Blockchain provides a secure, transparent, and immutable way to manage fractional ownership of collectibles. By providing an immutable ledger, blockchain ensures that fractional ownership can be tracked and verified, eliminating the risk of fraud or counterfeit goods. Furthermore, the use of smart contracts provides a secure and automated way to manage the transfer of ownership rights, eliminating the need for manual paperwork. As a result, blockchain can help reduce the time and cost associated with fractional ownership, making it more accessible for buyers and sellers.

Why should we us NFTs to represent Fractional ownership?

NFTs are an efficient and secure way to represent fractional ownership of digital assets. When compared to traditional methods of record-keeping, NFTs are more reliable and cost-effective. NFTs also provide a secure and immutable record of ownership, allowing for a full audit trail of ownership over time. This provides buyers and sellers with added confidence and security when trading fractionalized assets. Additionally, NFTs allow for the efficient transfer of fractional ownership between multiple parties, making them an attractive solution for fractionalizing ownership of tangible assets.

What are the benefits of using NFTs to represent Fractional ownership?

1 Immutability: NFTs are permanently stored on a blockchain, making them immutable and incorruptible. This gives buyers and sellers assurance that the ownership records are secure and can’t be tampered with.

2. Cost-efficiency: NFTs help to reduce costs associated with record-keeping and trading fractionalized assets. They also provide an efficient and secure way to transfer fractional ownership between multiple parties.

3. Transparency: NFTs provide an auditable record of ownership over time, enabling buyers and sellers to trace the history of their asset. This ensures that all parties involved in the transaction have full transparency over the ownership of the asset.

4. Liquidity: By allowing the fractional ownership of digital assets, NFTs provide greater liquidity to the asset. This makes it easier for buyers and sellers to trade fractionalized assets, creating a more efficient marketplace.

What are the advantages of using the Polygon blockchain?

The Polygon blockchain is a scaling solution that helps Ethereum to overcome the limitations of its base layer. It provides several advantages over the base layer such as lower transaction fees, faster transaction times, and better scalability. It also offers security and privacy features. Additionally, the Polygon blockchain provides developers with access to a wide range of development tools and frameworks for building decentralised applications.

Is there a limit to what can be fractionalised?

Not really, it is possible to fractionalise ownership of anything. This is done by dividing the asset into smaller units and allowing multiple owners to purchase a portion of the asset. This is commonly seen with real estate, stocks, and other investments, but can be applied to virtually any asset, including rare collectibles.

How does redistribution of wealth work with fractional ownership?

Fractional ownership is a type of ownership where multiple people can share in the ownership of an asset, such as real estate, art, a collectible item or a business. In this type of ownership, each individual owns a percentage of the asset, and all owners are entitled to a proportional share of the asset’s profits and losses. Through fractional ownership, the wealth of a single asset is redistributed among the owners, allowing them to benefit from the asset without having to bear the full cost of ownership. This type of ownership can also allow for a more diverse range of people to gain access to assets that would otherwise be out of reach, allowing them to participate in the redistribution of wealth.

The power to change the world.

Could fractionalized ownership benefit developing nations?

Yes, fractionalized ownership could benefit developing nations by allowing citizens to invest in assets that would otherwise be too expensive to purchase outright. By pooling resources, people can gain access to capital investments that can generate income and create economic opportunities. Fractionalized ownership can also reduce the risk associated with investing in high-value assets by allowing people to purchase smaller shares of the asset. This could help to create a more stable and secure investment environment.

Is there a future to shared ownership of collectibles?

Yes, shared ownership of collectibles is a growing trend, with many companies offering services that enable individuals to purchase and share ownership of rare and valuable items. This can be beneficial for those who cannot afford to purchase a piece outright, and it also helps to protect the items from damage or loss. There are also online marketplaces that allow individuals to trade, buy and sell collectibles, which can help to increase their value over time.

Is the rare collectibles market growing?

Yes, the rare collectibles market is growing. The global rare collectibles market size was estimated at $20.2 billion in 2020 and is expected to grow at a CAGR of 5.5% from 2021 to 2028. Factors driving the growth of this market include the increasing demand for collectible items among high-net-worth individuals, rising disposable income, and increasing investments in rare items. Additionally, the growing popularity of e-commerce platforms and the emergence of blockchain technology have further bolstered the market growth.

At Collector Labs we are specialising at fractional Ownership of Tangible physical assets represented by NFTs on the Polygon blockchain.