How Blockchain will change Real Estate in 2020
With a global value of more than $217 trillion, real estate is the largest asset class in the world, accounting for 60% of the world’s mainstream assets. Historically, real estate is where fortunes are made, yet access to this lucrative wealth builder has always had high barriers to entry. Now, with blockchain technology, real estate investing is trickling down to the mainstream investor.
While real estate is a way to build wealth quickly, it’s always been a Catch-22. If you don’t already have a substantial amount of liquid assets you can’t even get in the game. Adding to the headache for investors are high transaction fees, a severe lack of transparency, hard-to-get financing and slow transaction speeds. Blockchain is poised to change all that.
Originally created for cryptocurrency, blockchain technology has evolved to include much more than that. Each block of data is secured and tied to others using cryptographic principles. Blockchain data is decentralized, immutable and transparent. In real estate this means that entities, or people, can make major transactions directly without using a third party like a bank.
Here are three ways blockchain will change real estate in 2020:
Tokenization
Tokenization is the process of turning sensitive data into non-sensitive data that can be used in a database without bringing it into scope. A token is a digital representation of a real-world asset, value, or function. Tokenization increases the liquidity of assets making it possible to trade those assets without a third party. In the blockchain space there are thr……
While real estate is a way to build wealth quickly, it’s always been a Catch-22. If you don’t already have a substantial amount of liquid assets you can’t even get in the game. Adding to the headache for investors are high transaction fees, a severe lack of transparency, hard-to-get financing and slow transaction speeds. Blockchain is poised to change all that.
Originally created for cryptocurrency, blockchain technology has evolved to include much more than that. Each block of data is secured and tied to others using cryptographic principles. Blockchain data is decentralized, immutable and transparent. In real estate this means that entities, or people, can make major transactions directly without using a third party like a bank.
Here are three ways blockchain will change real estate in 2020:
Tokenization
Tokenization is the process of turning sensitive data into non-sensitive data that can be used in a database without bringing it into scope. A token is a digital representation of a real-world asset, value, or function. Tokenization increases the liquidity of assets making it possible to trade those assets without a third party. In the blockchain space there are thr……