What is Tokenized Real Estate?
Before jumping off a cliff, let’s get to know what Tokens are in the crypto world.
What are crypto Tokens?
Tokens refer to a virtual currency built on blockchain. The simple explanation for blockchain is that it is a decentralized platform used to store information in associated square perks. In all honesty, these token currencies are special and explain how cryptocurrencies are sequentially broken down into denominations. Tokens are also known as non-fungible assets, transferable through their blockchains.
In a deeper sense, tokens in the past, have been used for crowdfunding. But that’s not what we are about in this article.
We are here to know more about Tokenized Real Estate, right? But before we head into that, let’s get to see the different (if not most popular and virtually) tokens in use today.
Type of Tokens
- Bitcoin. Here’s a world-class, if not the most popular token out there. Launched in 2008 by Satoshi Nakatomo. Developed to create financial independence and decentralize forex trading, Bitcoin’s developer Satoshi didn’t imagine his gem’s worldwide popularity in this great light.
- Altcoins. At the very start, back in 2008, and until 2011 bitcoin led the crypto world as a dominant token. In the marketplace afterward, and as ventures rose, other cryptocurrencies like Ethereum, Litecoin, Swell, Bitcoin Cash, Monero, and, quite recently, Dogecoin grew out of local blockchains.
Tokenized Real Estate
Tokenized real estate is the creation of virtual tokens for tangible landed properties. Real estate deals with physical, real-life landed properties. Investors can bargain or acquire physical land with tokens.
With tokens, real estate properties can be paid for virtually. In the physical world, landed assets are bought with actual currencies. This is the same thing with the virtual world, but in that blockchain sphere, tokens are its number one exchange medium for buying, acquiring, and selling.
What does this mean?
Sellers include the location, land dimension, ownership history, documentation, and usage history in a blockchain. Buyers or real estate investors can now have access to this blockchain by buying or investing in this source of information using recognized tokens.
Benefits of Real Estate Tokenization
- With blockchain technology, ownership tussles can end. There is no counterfeiting of true ownership. Blockchain technology cannot be tampered with, and it eliminates fake claims.
- Through smart contracts in blockchain technology, violators are easily traced. Owners of leased properties now have access to the who, the what, and the when of any violation on their properties.
- With real estate and tokens, assets can be fractionalized. What this means is that portions of a property can be sold out to interested investors in bits. Investors can choose to trade their portions. And this brings profit.
