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?
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.
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 legal costs for such a contract and the insurance to cover the damages of each possible novel use case would make it impossible.
Social recovery: https://vitalik.ca/general/2021/01/11/recovery.html
> 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.