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The Future of Real Estate is in Cryptocurrency
Much of the world is unaware of some of the possibilities that blockchain and cryptocurrency make possible. The feature that is to be discussed in this article is tokenization as it relates to real estate. Cryptocurrency makes it possible to divide any wholly owned real world asset into many parts, or shares that represent ownership. This is already done in big business. Many large office buildings aren’t owned by a single entity, but instead by a corporation that is divided into shares. However, getting an invite to this exclusive ownership group is not available for much of the public. Oftentimes, the security and stability of a real estate investment is out of reach for lower to middle class citizens. But what if it wasn’t? What if you could own as little as $100 worth of your neighbours house?
Reitium: Cryptocurrency Integrated Real Estate
Reitium is a platform focused on the tokenization of real estate. This prop-tech company accelerates real estate transactions, allowing more people to invest in real estate without as much friction. However, real estate is one of the slowest moving industries due to the sheer volume of paperwork and legal proceedings that need to take place to close any deal. Problems such as clearing and settling, fraud, and high fees are issues that Reitium has set out to solve. Most of the real estate industry is slow to adopt technology. The emerging field of proptech is set to deal with the collection of issues the industry is facing.
Propy: One Stop Shop
What if you could purchase real estate anywhere in the world? Propy connects agents, brokers, and home buyers on a single integrated platform. This app is a one stop shop for all parties involved in real estate transactions. Propy leverages the universality of blockchain technology to provide a registry of homes bought and sold on the Propy platform. This acts as a single source of truth, as to reduce fraud within the process.
BlockSquare: Tokenized Real Estate
One of the most intriguing projects is a real estate and cryptocurrency crossover. BlockSquare allows you to invest, and share in the profits of real world assets. Their pilot project demonstrated that a parking space can be tokenized, allowing individuals to purchase shares in the parking space. Whatever profits are generated from renting the parking space are proportionately distributed to the shareholders of the parking space.
Massive Opportunity: Cryptocurrency in Real Estate
The global investable real estate market is estimated to be 50 trillion dollars. What each of these companies have set out to do, is digitize the marketplace. Real estate is notoriously illiquid, sometimes taking months or even years to buy or sell a home. Each company we covered today has their own strategy for tackling the problems that real estate is facing. In reality, each company is adding something unique to the space. Whether that is speeding up transactions, or creating a registry for real estate deeds, and transactions. The future of real estate is in cryptocurrency.
