- In a real estate tokenized platform, every transaction is regulatory compliant and is legitimate.
- In a blockchain based tokenized platform, investors can directly conduct transactions between themselves, without involving any third parties.
- Tokenization along with blockchain, allows global transactions at reduced costs. Also, it improves the speed, efficiency, accuracy of transactions in a highly-secure manner.
In Real estate, Tokenization refers to the process of converting securities, real estate assets, financial instruments into digital tokens. Tokenization comes along with blockchain technology, that completely transforms the business, the way it functions, and the way investors look at real estate investments.
Blockchain based tokenization platforms offer numerous advantages to the investors that includes fractional ownership, elimination of third parties, globalization, improved liquidity etc. Speaking of transactions, blockchain indeed takes the whole process to a new level with benefits like:
- The reduced costs help investors to decrease the minimal investment value and pave way for opportunities to a wider pool of investors.
- Blockchain offers anonymity to the users, i.e the users can conduct transactions without revealing their personal information and blockchain completely safeguards the user’s interest.
- Blockchain offers immutability, i.e transactions one recorded, cannot be altered or interchanged. This benefits the customers in a huge way to avoid risks/ hack threats.
- Blockchain comes along with smart contracts, which is the major tool that changes the way transactions function in real estate.
- Smart contracts automatically verifies, and performs credible transactions without requirement for any third party, upon the necessary terms and conditions met by the involved buyer and seller.
- In the traditional real estate, the process of performance determination, invoice, checking and approval of payments usually takes up a lot of time and resources. But in real estate tokenized platforms, blockchain technology along with smart contracts, makes the process quicker and easier.
- Blockchain technology with digital tokens as a means of payment, increases potential for construction contracts. The contracts are signed by the investors as a digital signature, before payments and are stored as an electronic version of the contract.
- Every transaction is verified, recorded on the blockchain, and the users can view transaction histories at any time they want to.
- Blockchain is a distributed ledger that runs connected to several networks on the internet. This raises a question of doubt, whether smart contracts are available for legal transactions in specific forms. The answer is the assumption that smart contracts cannot be used for formal transactions are not true. In terms of real estate transactions and surety agreements,smart contracts are an applicable subject, if the involved parties agree to make formal decisions of intent outside the blockchain and then transfer informally into the blockchain for stimulating smart contracts mechanisms.
Related: How to Tokenize Real Estate Assets?
Thus, Blockchain offers several benefits to the real estate transaction systems and makes it more efficient, effective and secure. In the traditional real estate system, the acceleration of transactions takes prolonged time, at least never less than six months, from contact between the involved parties to transfer of ownership in the registration of the property. But, tokenization along with blockchain technology, makes this process quick as a wink.
If you are a real estate investor and you want to conduct real estate transactions at ease, with improved speed, efficiency, accuracy and in a risk-free, hassle-free manner, conduct your research, choose the right real estate tokenization platform and tokenize your assets. By doing so, blockchain transforming your business and your business gaining a competitive advantage is a guarantee.