Tokenization of Real Estate Asset

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 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...

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...

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...