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A Ready Reckoner To Real Estate Tokenization

Real estate is one of the most valuable and profitable assets there is. According to a report, there is a significant growth in the professionally managed real estate sector. It was estimated that this market surpassed the $8.5 trillion mark in 2017. However, the property business still suffers from factors such as illiquidity, high costs, immobility, archaic documenting processes, and more. Luckily, the introduction of blockchain technology changes all this. Through the process of tokenization, the entire industry is reimagined and reshaped to suit the fast-paced trends of 2019.  In a blockchain sense, tokenization simply means the conversion of real-world ownership rights into digital tokens. This process helps users overcome conventional problems while also promoting decentralization and greater mobility. Let us see how the tokenization of real estate assets benefits the industry: Sellers can liquidate large and expensive properties with ease Property documentation is st

Understanding The Different Types Of Tokenization

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In 2019, almost anything can be tokenized using blockchain technology. Tokenization refers to the process of converting the ownership of real-world assets into digital tokens. It helps to optimize the process of liquidating large and expensive assets by fragmenting ownership. Moreover, by breaking down an asset into smaller units digitally, it helps improve trading and can be marketed to investors all around the globe. Finally, it simplifies the process of record-keeping and documentation thereby allowing buyers and sellers to track transactions efficiently. Today, there exist five major types of tokenization practices. They have been listed and briefly explained below: ICO Token Initial Coin Offering or ICO is a blockchain-based medium that enables entrepreneurs to easily raise funds for their projects. ICOs use blockchains to launch and distribute proprietary cryptocurrencies to investors. Security Token This is an alternate fundraising mechanism where entreprene

Real Estate & The Token Of Growth

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Real Estate – The Evergreen ‘Estate’ Since time immemorial, real estate has been considered to be one of the most dependable sources of investment and this trust has never failed the interest of the investors. The size of professionally managed real estate investments grew up from $7.4 trillion in 2016 to $8.5 trillion in 2017. The only other thing that we can expect to grow in the order of trillion dollars is the defense budget of the United States of America. For most people, 66% of their family wealth is their family home. About 8.25% of all the American households – that amount to more than 10 million – count as accredited investors. It is this 8.25 % of the households that hold a little over 70% of all the private wealth in the country. The value of the private wealth in the tune of about $45.5 trillion. These numbers are enough to establish the supremacy of real estate when it comes to investments. The Minor Setback Real estate is, evidently, a dependable investment

End-to-end tokenization platform

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Before jumping into the details of developing an end-to-end tokenization platform, one needs to understand the nuances of tokenization. Tokenization is nothing but the process of converting the value of tangible or intangible assets into tokens that can be traded or stored on the blockchain system. From assets to equities, goods, and services, anything can be tokenized. There are numerous benefits of tokenization. Some of these are: The automated process of carrying out service functions through blockchain and smart contracts Costs are reduced by a large extent due to the elimination of intermediaries Immutability of data written to the blockchain leading to lesser number of malpractices The building of a global investor network owing to the lower fees due to use of blockchain architecture Ownership transfer via digital mode in seconds with peer-to-peer trading Aids in bringing liquidity into the market with the ability to divide tangible assets through tokenizat

What, Why and How to Tokenize? Compliant Tokenization Platform Development

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Right from the days of studying algebra in school, until now, we have used x as a placeholder. We have progressed today where the language permits x be used as a substitute for anything. The phenomenon of tokenization is not an exception to this concept of x. While a phrase like ‘tokenizer for x’ can be looked at as a mere expression, It speaks a lot by clearly indicating that x can be substituted with anything. It includes real-world assets like real estate, collectibles, art, technology, and even secure information which re-establishes itself as a Whitelabel Tokenization Platform . Security tokens have opened avenues that have facilitated the tokenization of everything. It might not be an exaggeration to say that Security Token Offerings or STOs have spearheaded the movement of Tokenization Platform. While STOs have theoretically succeeded in positioning themselves as one of the most dependable and secure solutions for problems like liquidity and security camera, the proces

How To Tokenize Your Real Estate Assets In 7 Steps?

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The global real estate market is valued at a whopping $8.5 trillion in 2017. Experts estimate that this trend will continue to remain bullish as housing is one of the important components of human survival. However, the arrival of technology such as blockchain and cryptocurrency is opening up new avenues in the archaic real estate market. Today, it is possible to market physical assets to a diverse and global audience using tokenization. Moreover, real estate tokenization makes it easier to sell large buildings, office spaces and homes by fragmenting ownership. This means that it is possible to sell one building to multiple investors without any hassle. Alternatively, this also makes it possible for individuals to invest in multiple projects and create vibrant portfolios. Finally, the documentation and record-keeping processes are secured using blockchain technology while smart-contracts help makes the transfers and transactions effortless. In the real estate market a common

How Tokenization Is Transforming This $217 Trillion Dollar Real Estate Industry

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The blockchain is revolutionizing the archaic brick and mortar business of real estate. While blockchain is being used widely to manage the legal documentation and sale records of properties, many are finding a new application for this technology. This new application refers to the method of tokenization, where physical assets are converted into digital tokens. These tokens represent a stake and grants the token holder fractional ownership in the tangible asset. Tokenization is already very popular in the art as well as the venture capital sector, but it is rapidly making headways into the real estate industry. One of the most prominent examples of real estate tokenization occurred last year when St. Regis Aspen Resort, a premium luxury hotel in the United States, raised over $18 million in a crowd sale. There have been other success stories of real estate tokenization that have managed to make property developers and sellers believe in the potential this system possesses.