Tokenization; the Future of Real Estate Investing

Tokenization is the digitalization of an asset through a blockchain system.

Tokenization; the Future of Real Estate Investing
photo/courtesy

Any asset that can be monetized in the real world can be tokenized and have value through the issuance of tokens. These assets act like securities when they are ethereum based modified so as to comply with security laws. So how does it work?

Let's say that you are a property owner, your asset is the property you own, issuing a certain number of tokens to represent that actual property is tokenizing. Slicing the property into several pieces is one of the benefits of tokenization as it allows your asset to have a greater appreciation and be more liquid.

Tokenization comes with a lot of benefits that include;

  • increased capital
  • greater liquidity
  • immutable tracking
  • streamlined transactions
  • better market transparency
  • enable real-time investing process.

Before one settles down to tokenize their real property they need to have a blockchain platform that has legal rights to store assets. One also needs to have a place to sell as it will make no sense if you are not willing to sell these tokens, buy or even convert them into real-world money.

photo courtesy

It is one of the most promising used cases of blockchain technology in that real estate has more valuable assets than bonds and stocks combined. With the current market condition of unpredicting changes, the access to tokens is not limited to the elite investors only, who can move their funds more efficiently allowing any developer to raise capital with more ease and flexibility.

Edited by Skeeter Imisa