The world of NFTs is booming, not just because of the beauty of the artworks behind NFTs but also, because of the innovations that are continuously implemented to revolutionize the utility of NFTs.

In the past, NFTs were primarily confined to tokenizing artworks, devoid of tangible real-world applications. However, the contemporary landscape portrays NFTs branching into domains such as ticketing, content security, safeguarding wallets, e-commerce for identifying loyal customers, and a plethora of other functions.

Africa on its own is one of the few continents that joined the NFT world early. There are lots of NFT projects that have sprung up in Africa, each with its unique use cases.

In this blog, we will discuss vIRL NFTs and how their application holds the potential to elevate the process of property acquisition in the African context.

But, what are vIRL NFTs?

vIRL in shorts, can be said to mean, Virtual yet Real. Consider desiring to own an electric car that is already in existence in one of the developed countries, but you are afraid that you can’t utilize its full usage due to poor electricity in your country. Now, with the vIRL NFTs application, you can buy this electric car, and instead of having it delivered to you, you will be issued an NFT representing the electric car. This way, you are an owner of an electric car which you can redeem for the physical car anytime or for the current monetary worth. You can also list the NFT for cash whenever you want.

vIRL NFTs act as a bridge between the physical and the digital/virtual world, granting ownership of tangible goods without necessitating their physical presence. The beauty of vIRL NFTs is the fact that you can trade them right from the comfort of your home, and the unified payment method offered by cryptocurrency makes payment swift.

A crucial aspect to note from the earlier example is that the feasibility of purchasing an NFT equivalent of a physical electric car hinges on the adoption of vIRL NFTs by the car manufacturing entity or relevant blockchain initiatives. So, the idea behind vIRL NFTs needs adoption from real-world companies or blockchain projects for it to be actualized.

How does the incorporation of vIRL NFTs hold the potential to enhance property ownership in Africa?

Most African countries are still underdeveloped and the economic condition doesn’t make property acquisition easy for the average African, especially the youth.

A young man who is still living with his parents but with plans of getting his apartment in due time can leverage vIRL NFT to acquire properties little by little. He can buy cushions, and kitchen utensils, as vIRL NFTs, and as vIRL NFTs, they are not physical with him. This solves the problem most youths have when preparing to move away from their parent’s house. Some youths usually have money to buy some properties but the fact that they have no place to keep them, they won’t be able to proceed with it until they can pay for their own house. Most times, they end up squandering the money. vIRL NFT will allow them to buy such properties as NFTs, and resell/redeem the NFTs for their physical form later.

Furthermore, the efficacy of vIRL NFTs in property ownership becomes evident in terms of cost-effectiveness. The persistent inflation rates witnessed in Africa catalyze fluctuations in the prices of goods and services. For instance, an item retailing for $200 in January could experience an exorbitant 100% surge by May.

Now, consider buying a property in January when you have the means, even though you don’t have a use for it then and you have the property as an NFT. If the property rises in value, the value of your NFT will also rise. So, if you decide to have the NFT redeemed for physical goods, you will be able to sell it at a higher price which will be enough ( if not more than enough ) to buy the physical one at the current price.

A third avenue through which vIRL NFTs can catalyze property acquisition pertains to facilitating cross-border ownership among African nations. A marketplace for vIRL NFTs could help individuals explore property options beyond their immediate geographical location.

In conclusion, vIRL NFTs will see a huge adoption in the coming years because their use case is solving an existing problem; bridging the gap between the virtual world and the real world. Africa as a developing country will benefit very well from its use cases and it will improve property acquisition for Africans. Already, some companies have listed their products as vIRL NFTs and you can see them on some popular NFT marketplaces like the WAX blockchain’s Atomichub. The future is bright for vIRL NFTs and Africa has a lot to gain from it.

Joseph Ugochukwu is a Content Fellow