Real estate tokenization3 min read

Blockchain technology is gaining more and more prominence outside the world of cryptocurrencies, leading to the emergence of new trends in sectors such as real estate. Specifically, we are talking about the tokenization of real estate.

This trend eliminates existing barriers when investing in real estate in the traditional way, in addition to providing a number of advantages that we will present in this article.

 

Tokenization

To begin with, tokenization is the way in which an asset, tangible or intangible, is digitized and divided into parts that take the form of tokens. In this way, the person who owns the token will in turn have the rights attached to the asset, whether they are property or economic rights.

Now, assuming that most assets can be digitized and divided into smaller parts, there are infinite possibilities for tokenization, from real estate to works of art and other types of intellectual property. In addition, there are multiple and diverse agents that can benefit from this trend, such as individuals, institutions or companies.

Such tokenization is possible thanks to the use of blockchain technology that provides advantages of registration, traceability and immediate transmission of tokens.

 

Real estate tokenization

Once its meaning is known, it can be said that real estate tokenization is the digitization and transformation of a real estate asset into tokens. Each token represents a proportional part of that digitized real estate asset, and the economic rights generated by the property are fractioned and represented in those tokens.

In addition, since the possibilities of tokenization are infinite, any type of real estate can be tokenized, eliminating possible limitations or restrictions.

 

Advantages of tokenizing real estate

Here are the benefits of tokenizing real estate:

  • Accessibility: in order to invest in real estate in a traditional way, it is necessary to have a certain amount of capital to which some people cannot have access. However, by dividing the asset, small investors can participate and acquire tokens with which they can obtain a high return with a minimum investment.
  • Secure and easy transactions: blockchain technology allows buyers and sellers to conduct secure transactions online without the involvement of third parties.
  • Reduced costs and time: by eliminating intermediaries, costs and procedures associated with traditional methods are reduced, streamlining the process.
  • International investors: digitizing the investment process makes the offer more attractive and easier for international investors, overcoming geographical limits.
  • Increased financial capabilities: with tokenization, more money can be accessed to build real estate and obtain better financing conditions.

Real estate tokenization is a recent trend that is motivated by the prominence that blockchain technology is acquiring, but that may come to play a key role in the near future.

 

Do you have a business? Would you like to validate the potential of blockchain to make it more profitable and efficient?

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2023-02-22T11:21:50+01:0022 de February de 2023|Blockchain use cases, Real estate, Tokens|
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