Real estate tokenization is a new concept of cooperation blockchain technology and real estate investment.Tokenization enables asset or fund owners to generate funds more efficiently and provides investors with unprecedented access to private real estate assets, transparency and fluidity.
Businesses often use encryption to protect data at rest. However, while encryption is an acceptable form of data protection, there are other ways, such as tokenization.
In this article, we will introduce the concept of real estate tokenization, some of the top real estate Projects in the crypto space, and the benefits of real estate tokenization.
Learn about tokenization
Tokenization is a new term for crypto fundraising, allowing investors to exchange cryptocurrency or fiat cash for “tokens.” To be precise, tokenization is one of the ways to protect tangible assets.
Therefore, splitting assets into shares and trading them with investors facilitates asset securitization. Likewise, “tokenizing” an asset means dividing it into shares, or “tokens,” representing a preset share of the underlying value. Therefore, they are often referred to as “security token. “
The stability of blockchain technology shields these tradable tokens cryptocurrency exchange or other transaction systems (ATS).
real estate tokenization
Real estate tokenization is a modern extension of traditional fractional real estate ownership. It is similar to the crowdfunding method in that it allocates the value of a real estate investment into manageable portions to overcome most investment barriers.
Every part of the asset becomes a token. Each of these tokens is then encrypted with all the relevant details, providing investor ownership based on their percentage share of the property.
For example, imagine dividing $100 million in real estate into 100 tokens worth $1 million. Tokens can then be purchased at a determined value and traded on secondary exchanges.
Real estate is one of the major asset classes globally in terms of investment volume. However, the number of real estate investors does not equate to a staggering $280 billion in assets. This is because small-scale investors cannot get the capital they need. Second, real estate requires wasteful paperwork. There are growing concerns about the lack of transparency in the handling of assets.
REITs (Real Estate Investment Trusts) were established in the early 1960s to attract investors and change the illiquid asset status of real estate. A single property is divided into tranches, each held by different investors pooling funds, which can be considered a precursor to future tokenization.
Some of the ongoing real estate projects in the crypto space
In the following sections, we’ll take a look at some of the top real estate projects happening in the crypto world:
ATLANT is one of the latest blockchain-powered tokenized real estate marketplaces. Additionally, they created Uvas.com, a secure and regulated digital stock exchange forum. This may help projects understand hazards and investment barriers better than most.
With the launch of the Redot digital asset trading platform, ATLANT is laying the groundwork for the future that the market expects.
Deploy Ethereum Blockchain platform, Imbrex aims to provide owners with complete control over proprietary details and the resulting leads. The program promises to be one of the pioneers in the transformation of the real estate ecosystem.
The decentralization of the market makes the removal of intermediaries feasible blockchain development. Transactions, data and ownership are now more secure than ever thanks to the Interplanetary File System (IPFS) based information transfer.
Imbrex claims to be a great solution for investors looking to save money as the platform does not charge consumers for its services. The only additional fee is the transaction fee charged by Ethereum. Imbrex has more than 2,200 listings locally and is gradually covering properties worldwide.
SYB Coin (SYBC) is a new digital ecosystem project. The platform works to repurpose unused land for commercial and residential structures. SYBC tokens can be used to invest in tokenized businesses or gain full control.
On the SYB Forum, investors can communicate bitcoin, USDT and Ethereum for native tokens. A complete portfolio of available projects is uploaded on the internet, where potential investors can rent, lease or buy assets.Eliminate intermediaries to increase transparency and efficiency and implement smart contract.
Etherland allows owners to upload photos, documents and key facts about their property and publish unique NFT. These NFTS contain real world real estate data. This enables the digitization of property, which is subsequently tokenized and available for purchase by platform users. As a result, the liquidity of the asset is increased by disintermediation, and investors’ trust in their decisions increases.
Its native token ELAND is in Uniswap, Pancakeswap and Bilaxy. A dedicated mobile app is used to create property profiles and unique land IDs.
Various data related to issued NFTs is one of Etherland’s specialties. Users can easily select photos as asset information, saving time.
Various data related to issued NFTs is one of Etherland’s specialties. Users only need to select photos as asset information, and transactions are safe and free from unnecessary restrictions. Additionally, IPFS (Interplanetary File System) is associated with NFTs issued using the ELAND currency.
Investors can use Etherland tokens to access a unique real estate wiki called Etherland Estatepedia. This database contains all the necessary information about the asset identified by its LAND ID.
The letter “U” in United is short for utility. The plan is to launch the world’s first cryptocurrency metropolis in the future. UTED tokens may be useful for a variety of purposes, including grocery shopping and investing in tokenized real estate.
United recently launched the U-Cube platform, which promises to remove investment barriers and expand the crypto asset class for UTED clients. Additionally, crowdfunding on U-Cube increases liquidity and makes it more accessible to ordinary investors.
The project has just offered over 300 ready-to-occupancy apartments on www.u-land.com. UTED tokens can be used to easily own and invest in these properties. Currently, the United platform only accepts UTED and BTC tokens for trading. In the future, diversity will be able to harness the full power of immutable systems.
IHT Real Estate Agreement
The IHT Real Estate Protocol evolves into a tokenized real estate investment platform to increase the liquidity of assets. The mission of the program is to expand and diversify financing sources for reliable real estate investments worldwide. Its tokens are available on three different exchanges: HitBTC, Gate.io and CoinW.
IHT is a combination of blockchain and global real estate, pursuing a “digital credit society”. Tokenization has the potential to destroy assets and close the gap between owners and users.
The asset side issuing the real estate division issues the asset tokenized quotation (ATO). Interrupts are recorded in the IHT’s kernel ledger. The IHT requires developers to provide all necessary information about the asset, including its location, ownership and other characteristics. Investors can use the split products presented on the IHT platform to subscribe for ATO shares based on their suitability. Instant liquidity is possible due to secure and fast transactions.
IHT plans to tokenize $50 billion in assets, including tokenized land from China, Europe and Australia. Therefore, as real estate ownership becomes digitized, investors can expect complete transparency and shorter listing cycles.
Propy is an automated real estate platform whose primary goal is to improve convenience while giving customers peace of mind when dealing with tokenized land that best meets their needs.
Smart contracts are the basis for efficient and transparent operation of projects. Clients of the project include retail and institutional investors.
PRO is Propy’s native token, which is Ethereum platform. The organization believes the tokenization of real estate is inevitable and offers crypto real estate broker certifications to teach new investors. Offers specific courses on smart contracts and blockchain. At the end of each certification, an exam is administered to test knowledge.
The LABS group is a well-known name in the real estate tokenization space. The GAINS paradigm is used to create these utility tokens. The goal of LABS Group is to make real estate investing accessible to all types of investors. Possession minimum 100 USDT.
Using LAB tokens, users can buy ownership of a small island in Indonesia. LABS Group’s most recent project is the Kunang Kunang Glamping Resort in the heart of Indonesia. A trial run of the private luxury resort is planned for the end of 2021.
An end-to-end crowdfunding program launched by LABS Group has enabled the group to attract crypto users. Concerns about openness and communication among investors have been addressed through smart contracts. Every part of real estate investment with LABS Group is efficient and backed by expert research thanks to blockchain technology. Investors receive NFTs for every real estate investment made with LABS Group.
Tokenization of Real Estate: The Benefits
Tokenization is a REIT improvement that aims to remove most of the difficulties associated with this model by leveraging blockchain technology. For now, tokenization appears to be the only viable option for most investors. Some of the obvious motivations for real estate tokenization include:
Overcoming liquidity shortages is one way to increase the value of any asset. Tokenization can improve real estate liquidity by eliminating intermediaries and the onerous transactions that are often faced.
The bankability of real estate has improved significantly as blockchain technology monitors financial frontiers, market sentiment, social environment and operations. The multi-dimensional techniques used in the program make future trend predictions more reliable. Virtually eliminates the need for investors to do prior due diligence, which would otherwise be time-consuming and expensive.
The efficiency of the system has increased due to processes such as digitization, increased automation, smart contracts, and the lack of third-party involvement. No documentation is required, and transactions take no more than three days. Also, there is no downtime as the cryptocurrency exchange operates 24 hours a day, 7 days a week.
Tokenization expands investor access, especially for small-scale investors. Larger properties in smaller fractions are cheaper, opening up new ownership avenues for retail investors. Furthermore, the tokenization through the blockchain removes geographic restrictions for investors.
The longer the chain, the weaker it may be. Deploy smart contracts in tokenized real estate investments, reducing middlemen and allowing only peer-to-peer transactions. This greatly reduces counterparty risk and increases the confidence of small investors.
Tokenization adds much-needed liquidity and transparency to a previously opaque industry. Additionally, the ability to trade shares of real assets in real-time could spark more investor interest and open the door to more ambitious and innovative real estate ventures.
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