There are many industries which are discovering the power of blockchain and the positive ways it will help manage how their business work on both a daily basis and overall.
Real estate is one of the largest asset classes in the world. Let us discover two ways in which Blockchain has the capacity to assist the real estate market and the many people that are buying and selling properties.
Tokenization
The main idea behind asset tokenization is quite simple, as it allows users to convert the rights to assets such as homes and other real estates, which hold an economic value into a digital token. These token are then able to be stored and managed on a Blockchain network.
One of the most interesting outcomes of tokenization is fractional ownership. Fractional ownership is a method in which several unrelated parties can share the ownership of high-value assets, such as real estate, yachts, and jets. Explained simply, blockchain technology will allow multiple people to buy property tokens to enable easy access to co-owning such items.
Take a look below at some of the other important advantages that Blockchain tokenization offers to help streamline the real estate industry.
Now we have seen how Tokenization is set to improve how a real estate may be purchased in the future, let us take a look below at how smart contracts deployed on Blockchains will be more transparent.
Smart Contracts
What is a smart contract? Simply they are a way of automating contracts with a set of specific instructions written into its code, with the execution of the contract being made when certain criteria are met.
The major advantage of smart contracts is because they are created on a blockchain, the contracts retain transparency and unless privacy features are used, they are immutable and transparent (unless privacy features are used).
Let us look below at some of the advantages of combining Blockchain with smart contracts.
Future of real estate sector is blockchain and it is a revolution supposed to happen.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.
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