A look at the Token universe

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

One of the fundamental objectives of real estate proptech is to apply the technological innovations that prevail in the digital environment to add value to the sector. Here are some new investment models based on blockchain technology.

The token universe: a paradigm shift in real estate investment

With the pace of accelerated technological change and the demand for real estate at its highest point, the scenario is set for a massive transformation of the industry.

But what is blockchain? It is a distributed and immutable accounting technology in which the data of a certain transaction is recorded.

Its benefits include:

• transparency,
• traceability,
• accessibility,
• security,
• cost reduction in processes and
• irrevocable documentation of processes.

Therefore, this solution applied in the real estate market can eliminate the need for intermediaries (such as lawyers and agents) by providing a means of verification of ownership and payment to buyers. It is what is known as tokenization.

Tokenization is the process of representing fractional property interest in an asset (utility asset or security asset) with a blockchain-based token.

In this sense, you can pay for a property using cryptocurrencies. Since the token digitally represents the assets of the real world. From the most basic products, to real estate or shares of a company.

What are the benefits of paying in cryptocurrencies?

If you make a real estate transaction using token or bitcoin you can:

• Avoid banking commissions.
• Reduce the fees associated with the deposit by using smart contracts, which can be customized depending on the particularities of the buyer.
• Simplify transfers of ownership documents.
• Promote transparency in investment.

The real estate potential in token

Would not it be great to buy a house by clicking and selling it in the same way?

In a globalized world in which everything is exchanged at the speed of light, the utility of value chains lies mainly in the fact that we can use the network to transfer value tokens in a safe way. Also, without intermediaries.

In this way, a real estate market will be created in which each property will be represented by a limited supply of unique tokens, which will grant certain rights to the owner; For example, the use of property.

This cryptocurrency will be linked exclusively to the real estate asset in question and can be transferred safely to other users in exchange for a payment at any time and from anywhere (simply through your mobile device).

When the rights to a house, an apartment or an office are represented by tokens created in an immutable, permanent, verifiable and auditable blockchain infrastructure, the underlying asset becomes intrinsically divisible. Thus, this new feature transforms a property of real estate into a transportable digital asset.

Predictions estimate that, by 2021, most collective real estate financing platforms will take advantage of tokenization. We are fully convinced that proptech real estate will follow this trend.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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