Blockchain in real estate: you can now buy a fraction of the house

in blockchain •  7 years ago 

The power of the Ethereum Blockchain continues to permeate traditional business and investment models with real estate as the ultimate goal. Through crowdfunding and smart contracts, REAL believes that the inefficiency and lack of liquidity of this traditional institution of potential investment can be opened.

The idea of ​​investing in real estate used to involve huge sums of money to buy the property, in the locality of a person, in the hope that you get a profit on operating costs. However, collective funding and, even more recently Blockchain technology, are breaking this model.

Buy a fraction of a house
There is a lot of commitment that comes with investing in property. Rentals, as well as appreciation of property, are consistent and reliable streams of income and performance, however, entering the real estate market is not a game for everyone.

Recent ideas such as crowdfunding have simplified many aspects of traditional and business investments, but they still have their problems. Crowdfunding involves multi-party gathering, in a trust agreement, to achieve an outcome that usually has to be regulated by a third party.

In the case of real estate crowdfunding, intermediaries have to be employed to sustain a multi-party agreement so that appropriate dividends are received and the benefits are equitably and fairly distributed. Cross-border investments also come with their own problems.

Breaking down the walls with Ether
REAL's belief is that the use of Blockchain, Ethereum smart contracts and digital coins or their own chips can alleviate these problems. REAL tokens will be used to invest in properties on your crowdfunding platform.

While some of the traditional real estate investment issues are being solved through crowdfunding, a new world of cross-border and unreliable investments can be opened with Blockchain technology.

Through the REAL platform, tangible real estate can be invested in fractions and with digital currency. By using the Ethereum network, smart contracts do the job.

In an Ethereum environment, the need for regulators and intermediaries seems to fall, and with them, the fees and problems surrounding potential global investments. By investing in an Ethereum Blockchain, REAL proposes that rent dividends, investor agreements and other intricate aspects of real estate investment - at a collective funding level - will be executed fairly and transparently.

Full of liquid
The disruption of traditional markets also comes with ease of accessibility and, REAL, claims that due to the autonomous Blockchain system and the lack of external parties governing the flow of assets and control of parties in collective investment, there will be high Liquidity in an illiquid Game.

As with any token of criptomonedas, the growth or decrease in the value of the REAL token can be taken advantage of as well as the dividends returned from the true investment. Its platform aims to allow digital and collective investors the opportunity to convert their tokens into Ethereum, or other digital currencies, with ease.

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I liked the idea, nice post.