Real estate is one of those industries that has been slow to adopt new technologies. It relies heavily on human knowledge work and personal relationship building as its primary tool for driving value. When it comes to blockchain, however, the real estate industry has been quick to act.
Why the sudden change? First and foremost, blockchain solves problems for the real estate industry that other digital technologies weren't well-suited for. Tools like smart contracts and blockchain-verified title ownership are clear ways in which blockchain provides real value for the real estate industry.
Because blockchain is a secure distributed ledger technology, built with transaction management in mind, it’s perfect for an industry that relies on large scale transactions based on complex agreements and contracts.
One of the more promising applications for blockchain in the real estate industry is the tokenizing of physical real estate assets. With ICOs pioneering the creation of purely digital securities, there is a clear use case for leveraging a similar model to increase liquidity for real estate investors and open up the possibility for fractional ownership. Since an investor can purchase a percentage of tokens that represent a partial stake in a property, they can invest in properties that would have previously been too expensive. The fact that it’s one of the more compelling use cases is also why so many companies are working to develop tokenized investing platforms.
Everyone in the industry is clambering to apply blockchain to improve existing processes, and whether you’re a mortgage broker, a bank, or a real estate agent, there are probably blockchain applications coming down the pipe that will impact the way you do business. These 5 companies are leading the way with some of the first real world applications for blockchain within the real estate industry. Read on to learn more about how this technology will impact your industry, and where opportunities for future integration are still open for development.
1. BitOfProperty joins the growing number of real estate companies using blockchain technology to help people invest in fractional ownership of property. BitOfProperty allows investors to invest in real estate by purchasing BITS, which represent ownership of the listed rental properties. By tokenizing the ownership of properties, companies like BitofProperty are opening up rental investing to a whole new class of investors.
2. FundPlaces is providing a global real estate investment platform through tokenizing properties and opening them up to fractional investment from investors around the world. Powered by partner FUDA’s blockchain platform, they help users digitize real estate on the blockchain. FundPlaces users gain access to properties that would otherwise be difficult to find or prohibitively expensive. With the benefits of a transparent blockchain infrastructure, users can trust the validity of their investments.
3. Meridio is a ConsenSys project designed to help fractionalize ownership of various real estate assets. Investors gain access to a variety of properties with greater liquidity and lower capital requirements than traditional real estate investing. Asset owners and investors access their investments through a web application that houses property dashboards, due diligence, and peer-to-peer trades.
4. ATLANT is a blockchain real estate platform ICO that is seeking to tokenize a diverse range of real estate assets to help open up fractional investment in properties. Currently in beta, their platform claims to facilitate the tokenization of properties and rental arrangements.
5. Blocksquare aims to bring blockchain services to existing real estate businesses. They are working to create a series of protocols and APIs to help real estate incumbents tokenize existing properties and assets to increase liquidity and bring the industry through a true digital transformation.
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