Talk to an Expert

Tag: Real Estate Tokenization Platform

Top 10 Countries to Launch a Real Estate Tokenization Platform in 2026

Posted on by Shipra

Regulations, taxation, investor trust, and even blockchain infrastructure vary from one country to another. Choose the wrong one, and you might face endless compliance, high taxes, or limited investor participation.

The real estate tokenization is expected to exceed $16.51 billion by 2033, growing at a CAGR of 19.50%. That’s why choosing the right country matters more than ever. 

In this blog, we’ll explore the top 10 countries to launch a real estate tokenization platform, highlighting their benefits, regulations, and tips so you can make an informed decision and set your platform up for long-term success.

How the Right Country Boosts Your Tokenized Real Estate Project?

Choosing the right country for tokenization platform development and launch is crucial it impacts regulations, investor confidence, and long-term project success. Let’s explore the key factors to consider before making your decision:

1. Jurisdiction: Ensure the country has clear crypto and tokenization laws. A supportive regulatory framework protects investors and minimizes compliance risks.

2. Taxation: Look for countries offering favorable tax rates on digital assets. This helps in maximizing returns and maintaining operational efficiency.

3. Market Accessibility: Choose a country with global market access and financial infrastructure. It enables transactions and broader investor participation.

4. Blockchain Ecosystem: A strong local blockchain ecosystem supports innovation. Collaboration with top blockchain companies and developers enhances project scalability.

5. Political and Economic Stability: Stable governments ensure consistent policies, reducing risks of sudden legal or economic disruptions. Stability fosters investor trust and project longevity.

6. Data Protection Laws: Opt for nations with robust data privacy regulations. Secure data handling ensures compliance and builds user confidence in tokenized assets.

Top 10 Countries for Real Estate Tokenization Platform Development in 2026

Here are the top 10 countries to consider in 2026 that provide the perfect ecosystem for launching your real estate tokenization platform:

A Quick Overview of Best Countries for Real Estate Tokenization 

Top Countries to Launch a Real Estate Tokenization Platforms

Now, lets have a detailed analysis of every country that why its an ideal choice to invest in real estate tokenization projects before 2025 ends:

  • UAE

The UAE, particularly Dubai and Abu Dhabi, has become a pioneer in embracing blockchain and tokenized assets. With initiatives like the Virtual Assets Regulatory Authority (VARA) and ADGM’s DLT frameworks, the country provides a transparent regulatory environment for digital asset issuance.

  • Regulatory Advantage: VARA licensing for virtual assets ensures legal clarity for tokenization projects.
  • Investment Ecosystem: Strong investor demand for digital real estate and crypto-integrated property sales.
  • Infrastructure: Dubai’s Smart City vision supports blockchain-based property transactions.

Why UAE? It’s one of the few countries where you can legally tokenize properties and attract both local and international investors through compliant structures

  • United States

The U.S. remains the market leader for blockchain startups and real estate investments. With the SEC refining its stance on digital securities, tokenization projects can operate under regulated frameworks such as Reg D and Reg A+.

  • Regulatory Frameworks: Clear security token guidelines under SEC oversight.
  • Market Depth: Trillions in real estate value and a strong appetite for fractional ownership.
  • Tech Ecosystem: Home to top blockchain and fintech innovators.

Why the U.S.? It offers access to one of the world’s largest investor pools and a mature infrastructure for digital securities.

  • Australia

Australia is rapidly becoming a blockchain-friendly destination with government-backed digital initiatives and a strong fintech ecosystem.

  • Regulatory Support: The Australian Securities and Investments Commission (ASIC) provides structured guidance for tokenized assets.
  • Market Adoption: Early adoption of blockchain property registries in states like New South Wales.
  • Stable Economy: High investor trust and real estate transparency.

Why Australia? A strong legal system and digital-first policies make it a safe and progressive environment for real estate tokenization startups.

  • Singapore

Singapore continues to dominate Asia’s landscape with its forward-thinking regulations under the Monetary Authority of Singapore (MAS).

  • Regulatory Clarity: MAS licensing ensures compliance for security and utility tokens.
  • Investor Access: Strong institutional participation in asset-backed tokens.
  • Global Connectivity: Strategic position as a financial and blockchain hub.

Why Singapore? Businesses launching a real estate tokenization platform benefit from transparent regulation, a global investor base, and tech-savvy infrastructure.

  • India

India is gradually embracing Web3 innovation, and real estate tokenization is expected to gain strong traction by 2026.

  • Market Size: $250 billion+ real estate market ready for digital disruption.
  • Regulatory Shift: Gradual progress toward defining tokenized assets and digital property rights.
  • Startup Ecosystem: Rapidly growing blockchain and fintech startup base.

Why India? With a rising middle class and increasing investor appetite for fractional ownership of property, India is set to be a key player in tokenized real estate markets.

Get In Touch

  • Germany

Germany is one of the first EU countries to legally recognize blockchain-based securities. The Electronic Securities Act (eWpG) and BaFin regulations allow full compliance for tokenized assets.

  • Regulatory Advantage: Legal framework for tokenized real estate shares and bonds.
  • Institutional Backing: German banks are exploring blockchain-based asset custody.
  • Stable Market: High investor trust and real estate stability.

Why Germany? It combines legal certainty, strong financial institutions, and a receptive investor community for digital assets.

  • Switzerland

Switzerland remains a top choice for blockchain-based real estate projects thanks to its progressive laws and crypto-friendly banks.

  • Legal Framework: The Swiss Financial Market Supervisory Authority (FINMA) provides clear guidance for token issuance.
  • Innovation Hub: Zug’s “Crypto Valley” is home to leading blockchain companies.
  • Tax Benefits: Attractive tax policies for digital asset businesses.

Why Switzerland? Ideal for global investors seeking a regulated, low-risk jurisdiction with a strong blockchain ecosystem.

  • United Kingdom

The UK continues to evolve its digital asset regulations post-Brexit, positioning itself as a safe, innovative hub for tokenized property investments.

  • Regulatory Direction: The FCA is developing new frameworks for digital securities.
  • Financial Infrastructure: London’s investment networks and fintech community are robust.
  • Global Appeal: Attracts institutional investors seeking compliant blockchain solutions.

Why the UK? Strong legal systems, access to capital, and global credibility make it a prime location for tokenized property ventures. 

  • Canada

Canada has emerged as a forward-thinking market for blockchain asset innovation, supported by clear crypto regulations and strong investor protections.

  • Legal Oversight: Provincial regulators provide clarity on tokenized securities.
  • Blockchain Adoption: Toronto and Vancouver lead in blockchain real estate pilots.
  • Investor Confidence: Transparent taxation and reliable financial institutions.

Why Canada? A stable economic and legal environment makes it one of the most reliable destinations for launching tokenized property projects.

  • Hong Kong

Hong Kong is rapidly positioning itself as a regulated center for digital assets in Asia, following new crypto licensing policies in 2024.

  • Government Support: Proactive Web3 promotion under the Hong Kong Monetary Authority (HKMA).
  • Global Gateway: Strong connection to mainland China and global investors.
  • Regulatory Clarity: New token issuance laws allow for compliant real estate tokenization.

Why Hong Kong? It offers a balance of innovation, regulation, and access to Asian capital markets, which are perfect for tokenized real estate startups.

Factors to Consider for Choosing the Best Country for Tokenization

Before selecting a country for your Real Estate Tokenization Platform, it’s crucial to understand the legal, financial, and technological factors that can impact your project’s success.

1. Regulatory Framework: Choose a country with clear crypto and securities regulations to ensure your tokenized real estate investment platforms operate legally and transparently.

2. Tax Policies: Analyze taxation on digital assets and foreign investments to maximize profitability and minimize unexpected liabilities for your tokenized real estate platform.

3. Investor Protection Laws: Select jurisdictions that offer strong investor safeguards to build trust and attract global participants in your tokenization venture.

4. Market Maturity: Opt for countries with advanced blockchain ecosystems and financial infrastructure to support efficient token issuance and trading.

5. Banking and Payment Systems: Ensure local banks support crypto-related transactions for fund transfers and liquidity in your platform operations.

6. Technology Infrastructure: Reliable internet connectivity and data security frameworks are vital for managing token issuance, trading, and compliance efficiently.

Real Estate Tokenization Development Company

Conclusion

Whether it’s the UAE’s progressive crypto regulations, the US’s institutional adoption, or Singapore’s fintech-driven innovation, as 2025 ends, you have the opportunity to launch real estate tokenization platforms in these top countries.

SoluLab, a leading real estate tokenization development company, helps businesses and investors build secure, compliant, and scalable tokenization platforms that render the true value of digital real estate assets. From smart contract development to regulatory integration and investor dashboards, we deliver end-to-end blockchain solutions tailored to your goals. 

Get in touch today to transform your real estate assets into high-value digital tokens and lead the future of property investment!

FAQs

1. What are platforms for tokenized real estate-backed securities?

These are digital platforms that facilitate buying, selling, and managing real estate assets as blockchain-backed tokens for investors.

2. What are tokenized real estate investment platforms?

These platforms allow investors to invest in fractional property ownership through blockchain tokens, providing liquidity and global access.

3. What is XRP Dubai real estate tokenization?

XRP Dubai real estate tokenization involves leveraging XRP blockchain technology to create secure, fast, and scalable tokenized property assets in Dubai.

4. How do real estate tokenization development services help?

These services assist in creating blockchain solutions, legal compliance, smart contracts, and secure platforms for tokenized real estate investment.

5. How do you tokenize real estate?

You can tokenize real estate by creating blockchain-based digital tokens representing ownership shares, supported by legal and smart contract frameworks.

9 Blockchain Real Estate Companies to Watch in 2026

Posted on by Bhavya Dave

One should always keep an eye out when buying and selling real estate. Real estate transactions can become a nightmare rather than a pleasurable experience due to risks associated with buying and selling real estate, including fraud, human errors in paperwork, sluggish processing times, bureaucracy, and opaque transactions.

Blockchain in real estate startup owners are considering using blockchain technology to address real estate problems. We chose nine blockchain real estate companies building platforms in the real estate industry. We ranked them based on the following factors: availability of a live product/beta/MVP, money raised, stage of the roadmap, and scalability. This will allow us to demonstrate the most prevalent use cases of blockchain in the real estate industry.

Best Blockchain Real Estate Companies

Blockchain companies in real estate are the leading technology since it has a built-in trust system. Global real estate firms use blockchain’s ledger and smart contract features to transparently and effectively make renting, purchasing, investing, and even financing possible.

A unified database of leases and acquisitions is more important than ever because of the enormous daily rate of real estate crypto tokens. Blockchain in real estate companies can do that. Brokers and agents would be able to access the whole transaction history of a property if the traditional Multiple Listing Service database was upgraded to a blockchain-based one.

Evaluation Criteria

Several criteria should be considered when evaluating blockchain real estate companies that are using blockchain to make an informed decision. Here are some evaluation criteria to help you choose the right blockchain real estate company:

  • Experience and Track Record: Evaluate the company’s experience in the real estate industry and its track record in implementing blockchain solutions. Look for successful case studies or partnerships with reputable real estate organizations.
  • Technology and Infrastructure: Assess the company’s blockchain technology infrastructure, including its platform’s scalability, security, and efficiency. Consider the compatibility of their blockchain solutions with existing real estate systems and networks.
  • Smart Contract Capabilities: Evaluate the company’s smart contract functionality and features. Look for advanced capabilities such as automated property transfers, rental agreements, and escrow services.
  • Data Privacy and Security: Examine the company’s approach to data privacy and security. Ensure they have robust measures to protect sensitive real estate data and comply with relevant regulations.
  • Interoperability and Integration: Assess the company’s ability to integrate with other systems and platforms within the real estate ecosystem. Look for compatibility with industry standards and protocols to facilitate seamless data exchange.
  • Regulatory Compliance: Verify that the company adheres to legal and regulatory requirements in the jurisdictions they operate. Consider their understanding of real estate regulations and how they ensure compliance with their blockchain solutions.
  • User Experience and Adoption: Evaluate the user experience of their blockchain platform and the ease of adoption for both real estate professionals and end-users. Consider the availability of user-friendly interfaces, documentation, and support services.
  • Industry Reputation and Partnerships: Research the company’s reputation within the blockchain and real estate communities. Look for partnerships with established real estate organizations, industry alliances, or collaborations with other reputable companies.
  • Cost and Value Proposition: Assess the company’s pricing structure and evaluate its value in terms of cost savings, efficiency gains, or improved transparency. Consider the return on investment and the long-term benefits of implementing their blockchain solutions.
  • Customer Reviews and References: Seek feedback from existing clients or users of the company’s blockchain solutions. Look for customer reviews, testimonials, or references to gain insights into their level of satisfaction and the company’s performance.

The expanding property-sharing business embraces blockchain and assists the traditional real estate industry. The 15 blockchain real estate tokenization companies that are using blockchain listed below leverage the booming technology to expand their clientele.

Blockchain Real Estate Companies

Here are the Top 9 Blockchain Real Estate Companies to Watch in 2026.

The expanding property-sharing business embraces blockchain and assists the traditional real estate industry. The 9 blockchain real estate tokenization companies listed below leverage the booming technology to expand their clientele.

1. SoluLab

Visit
Website

SoluLab offers a white-label real estate tokenization platform, seamlessly integrating with any real estate website. With a user-friendly Web application, buyers and agents can submit offers instantly from online listings. The platform, utilizing multiple blockchain technologies and smart contracts, ensures transparent transactions with real-time notifications and chat features.

Trusted by industry leaders like Waterton, The Corcoran Group, Freeman Webb, Global Switch, and recognized as a top Blockchain development company by Goodfirms, Clutch, and Gartner, SoluLab stands at the forefront of real estate blockchain companies. Founded by industry experts, including a former VP of Goldman Sachs, SoluLab’s excellence is underscored by its 33rd rank on Deloitte’s 2020 Technology Fast 500™ list, marking it as a leading player in real estate blockchain projects.


$25-$49


50-249


2014


Los Angeles, CA, USA


Acreage

2. Propy

Visit Website

Propy, a pioneer in the real estate crypto projects sphere, boasts a decentralized title registry and operates as a global real estate marketplace. Having successfully raised $15 million in its PRO Token Sale in September 2017, Propy embarked on a mission to revolutionize the global real estate industry through blockchain technology. Collaborating with the Ukrainian government and a Chinese real estate services provider, Propy facilitated foreign investors’ access to blockchain real estate, marking a significant leap in the industry.

Currently active in prominent cities like San Francisco, Dubai, Beijing, New York, Moscow, Los Angeles, Miami, and London, Propy enables users to search for properties in their local language. With detailed property information and owner contact options available, Propy facilitates seamless transactions, allowing customers to use bitcoins for real estate purchases on the blockchain.


$25-$49


101-250


2016


California, United States


N/A

3. Harbor

This blockchain real estate venture is dedicated to transforming traditionally illiquid assets like real estate and private equity into tokenized securities compliant with Securities and Exchange Commission (SEC) regulations. Harbor prioritizes compliance checks such as AML (Anti-Money Laundering) and KYC (Know Your Customer) to ensure adherence to regulatory standards when engaging with investors. Leveraging Regulated Tokens (R-Tokens), the network digitizes tangible real estate assets, with a strategic restriction that prevents non-accredited investors from purchasing R-Tokens from their accredited counterparts.

Harbor’s innovative strategy extends to its use of Ethereum’s ERC20 technical framework for R-Tokens, making them theoretically tradeable on any cryptocurrency market that accepts such tokens. The startup aims to collaborate with a client this summer to develop its inaugural securities token, demonstrating its commitment to advancing the capabilities of blockchain technology in the real estate sector.


$55-$90


1-10


2017


California, United States


N/A

4. Mogul

Visit Website

Alex and Joey, the Mogul founders, spent years understanding the intricate real estate investment industry. It became shockingly evident that the system was filled with antiquated procedures after searching the sector, capital stack, and product types. Several prohibitive entrance hurdles were obvious, due to which chaos birthed Mogul.

Mogul is the blockchain oracle for real estate and will continue to disrupt a sector ripe for revolution by liberalizing real estate investing. The mogul’s objective is to provide all investors direct access to real estate for $1 and property owners with cost-cutting, equity-unlocking blockchain-based solutions. Polygon, a “layer two” scalability solution for Ethereum, helps them achieve that. Polygon offers the same security and functionality as Ethereum, but transactions are faster and cheaper.


$25-$50


1-10


2022


Washington, United States


N/A

5. BitRent

Visit Website

BitRent is the first blockchain-based real estate platform that brings together investors worldwide and property developers to raise capital during the early phases of development. Small investments can be made and protected by being registered in the decentralized registry. Along with having its coin, the RNTB token, BitRent, also permits real estate transactions through smart contracts.


$55-$90


11-50


2001


England, United Kingdom


Blizzard, J2 Global

6. Blocksquare

Visit Website

Real estate firms can utilize Blocksquare’s platform to design and offer tokenized investment packages directly on their websites, enabling the sale of real estate assets to a maximum of 100 customers. Blocksquare’s blockchain-based protocol, integrated with data from land registry systems, links crucial real estate items to PropToken smart contracts. These smart contracts not only specify the rules and regulations of each asset but also securely manage ownership. Customers of Blocksquare can conveniently exchange ETH for PropTokens and utilize the decentralized exchange to buy or sell their tokens at any time.


$55-$90


11-50


2017


Ljubljana, Slovenia


N/A

7. Averspace

Visit Website

Averspace is the first C2C (consumer-to-consumer) one of Singapore’s leading blockchain in real estate companies. It is a platform that directly connects landlords and property owners with purchasers or tenants for transactions involving purchasing, selling, or renting real estate without brokers.

The platform also offers a user-friendly smartphone app. The creators of Averspace also work on Real Estate Doc, a cloud-based enterprise project that provides real estate firms with document management, digital signing, payments, and analytics capabilities.


$55-$99


11-50


2016


Singapore


N/A

8. ATLANT

Visit Website

ATLANT, an international blockchain network for real estate, offers tokenization of properties, where the owner provides property information, verifies its condition and debt-free status, and then ATLANT tokenizes the real estate asset, establishing a direct link between the number of tokens and the asset’s value. These tokens are listed on ATLANT’s trading platform, allowing investors worldwide to purchase them and acquire partial ownership of the asset until it is fully funded, with the owner receiving the payment in the chosen cryptocurrency.


$25-$50


11-50


2017


England, United Kingdom


N/A

9. BrikBit

Visit Website

BrikBit, a blockchain-based ecosystem, enables and oversees various activities in the real estate sector, offering benefits to all stakeholders. It utilizes unique blockchains for each real estate object based on the applicable laws and features in a given nation, covering use cases such as providing investment opportunities for construction workers, facilitating home purchases through mortgages with incremental payments, and enabling crowdfunding for property renovation expenses. Although currently in the real estate ICO stage, BrikBit aims to deliver these functionalities.


$25-$50


11-59


2018


Ticino, Switzerland


N/A

How Is Blockchain Technology Changing Real Estate?

More blockchain use in commercial real estate could have a favorable impact on the sector. Real estate companies use blockchain because it is a relatively young technology. But it can gain popularity when people become aware of its potential advantages. The following are possible blockchain uses in commercial real estate.

  • Faster, More Secure Transactions: Numerous characteristics of blockchain can result in speedier, more secure transactions. You don’t need to wait for financial institutions to file paperwork because every activity is recorded on a public ledger. Additionally, using blockchain in commercial real estate would make it impossible for records to be altered. Consumers currently depend on financial organizations to safeguard their private information. Unfortunately, the extra security measures that banks & other financial organizations take don’t guarantee safety. Financial institutions are the target of some of the largest data breaches, probably because fraudsters know they may obtain information there that would aid them in their crimes.
  • Smart Contracts: By minimizing paperwork and the stages required to purchase property, using blockchains in commercial real estate to expedite processes instantly creates chances to cut expenses. Smart contracts built on the blockchain are utilized to help automate it. If/then statements that advance real estate blockchain projects at the appropriate point can be used in blocks of a ledger. For instance, the smart contract might stipulate that the buyer won’t get a formal price offer until the property has been thoroughly inspected and assessed by an expert. Once the buyer has chosen a request, it is sent to the seller and their real estate agent for approval. Blockchain-based smart contracts ensure that all parties keep their promises before the transaction is closed when correctly implemented.
  • Lower Costs: By minimizing paperwork and the stages required to purchase property, using blockchains in commercial real estate to expedite processes instantly creates chances to cut expenses. You can buy property tokens on some websites for real estate. You can buy a house or a portion of a property using cryptocurrencies rather than going through a brokerage that levies fees. Using blockchain to buy the property directly rather than going via go-betweens, you can eliminate all the costs and percentages experts demand when selling or buying property.
  • Asset Tokenization: Blockchain technology has the potential to revolutionize how real estate investments are crowdfunded. Currently, ownership of properties funded by crowdfunding is distributed among investors. A real estate company, for instance, might offer 100 shares. Once fully funded, they use the investor’s funds to buy or construct an asset that will produce income.
  • Tracking Asset Ownership: Asset tokenization would slightly change the structure to provide investors & developers more flexibility. You could buy a token recorded in a public ledger rather than a portion of the real estate. You now have a fully transparent record of when and how much you spent on the token. You have evidence that you invested, and the tokens are yours in case your ownership is questioned.
  • Selling Your Real Estate Investment Tokens: Asset tokenization will also make it simpler for you to sell your investment to a third party. Investment agreements allow other owners to restrict you from selling your stake without their consent. Even if you can sell your share without permission, you must complete the paperwork to transfer your ownership to another investor.

Blockchain Real Estate Companies

Final Thoughts

Here is our final opinion on the decision to use digital research to study the housing market in 2023. If you’ve been considering engaging in this digital real estate transaction, you must first comprehend what blockchains are and how they operate. All the data relating to real estate transactions are intended to be stored in these databases. This industry is booming, and the number of blockchain in real estate companies using the blockchain to transact in real estate is also growing. The list will continue to grow, but we’ve included the top nine that offer specific services to issuers and real estate investors. It is important to keep in mind that blockchain real estate is safe. There is no chance that someone will delete or alter your information because it is saved permanently.

If you are interested in purchasing an investment property and, at the same time, using blockchain networks, you should consider using Solulab’s white-label real estate tokenization platform. SoluLab is a trusted blockchain development company that offers white-label real estate tokenization services. Their platform enables businesses to tokenize real estate assets, providing fractional ownership and investment opportunities. With SoluLab’s expertise in blockchain technology, they create secure and efficient solutions for the real estate industry, enhancing transparency and liquidity in the market. Their services extend beyond real estate tokenization, offering comprehensive blockchain development solutions tailored to business needs.

FAQs

1. How does real estate tokenization benefit investors?

Real estate tokenization offers several benefits to investors, including increased liquidity, fractional ownership, and access to a wider range of investment opportunities. By tokenizing real estate assets, investors can easily buy and sell tokens, eliminating the need for traditional lengthy processes associated with property transactions.

2. Is real estate tokenization secure?

Yes, real estate tokenization leverages blockchain technology, providing a high-security level. Blockchain ensures that all transactions and ownership records are stored in an immutable and decentralized ledger, making it difficult for fraudulent activities to occur. Additionally, smart contracts govern the tokenized assets, ensuring transparency and eliminating the need for intermediaries.

3. Can I invest in real estate with a small budget?

Yes, real estate tokenization allows for fractional ownership, meaning you can invest in a fraction of a property rather than purchasing an entire property. This opens up investment opportunities to individuals with smaller budgets, providing access to the real estate market that was previously limited to high-net-worth individuals.

4. How does tokenization impact property liquidity?

Tokenization enhances the liquidity of real estate assets by enabling fractional ownership and facilitating the trading of tokens on blockchain-based platforms. Investors can easily buy or sell their tokens, allowing for greater flexibility and quicker access to funds than traditional real estate investments.

5. Are there any regulatory considerations for real estate tokenization?

Yes, regulatory compliance is a crucial aspect of real estate tokenization. Each jurisdiction may have different regulations governing securities and digital assets. Working with experienced professionals who understand the legal requirements and can ensure compliance with applicable laws and regulations is important.

6. What is the role of smart contracts in real estate tokenization?

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. In real estate tokenization, smart contracts automate various processes, such as token issuance, ownership transfers, and distribution of returns. They provide transparency, efficiency, and enforceability of the contractual obligations between parties involved in tokenized real estate transactions.

7. Can I tokenize any type of real estate asset?

Any type of real estate asset can be tokenized. Whether residential properties, commercial buildings, or even land, tokenization can be applied to create digital representations of these assets. However, practical considerations such as legal and regulatory requirements, market demand, and asset characteristics must be evaluated before deciding to tokenize a specific property.

A Beginner’s Guide to Real Estate Tokenization

Posted on by Shipra

A Beginner's Guide to Real Estate Tokenization (1)

The adoption of blockchain technology in real estate has led to a radical transformation of the industry. It has made it easier for people to own digital real estate, allowing people who were previously excluded due to a lack of resources to participate and hiding problems such as a lack of transparency and trust.

Real estate has historically been a very illiquid asset, requiring substantial financial investments and drawn-out transaction procedures. However, tokenization has changed the situation. Additionally, the blockchain technology that underpins it has enabled previously unheard-of transparency. Having stated that buyers can now complete transactions utilizing tokenized real estate in an immutable manner.

This article debunks real estate tokenization development & answers concerns about the question of what is the tokenization of real estate, the practical operation of real estate tokens, tokenized ownership, and the amount of real estate that has been tokenized. Let’s first examine how real estate has changed as a result of its fractionalization and subsequent tokenization as we go through this guide to real estate tokenization.

Tokenization of real estate

Real estate is referred to as being tokenized when a piece of property is broken up into digital tokens that represent the underlying value of the asset with all of its rights and liabilities. Contractual details are defined via smart contracts. If a predetermined contract condition is met, the algorithm stored in the digital contract initiates the actions described in the code.

For example, a smart contract can operate without the involvement of a human to effectuate a transfer within a land register. It verifies the operations and automatically creates a new block, adding it to the blockchain.

ERC-721 tokens are applied to fractionalize NFTs. On the Ethereum (ETH) blockchain, ERC-721 denotes a predetermined standard and is linked to a smart contract that records the transactions where these tokens are involved. The traceability, as well as security of the transaction, are to be improved by the ERC-721 standard.

How does real estate tokenization work?

Real estate is fractionalized into tokens and maintained on a decentralized database through the process of real estate tokenization development. The term “blockchain” refers to this decentralized database, which functions as a kind of electronic ledger for information storage. NFTs and real estate tokens are comparable. A real estate token might stand for any of the following:

  • ownership of a portion of real estate
  • ownership of the whole piece of real estate
  • an ownership stake in a company that manages real estate
  • a stake in a loan with real estate as security
  • a claim to a portion of the earnings derived from real estate

Real estate tokens differ from Real estate investment trusts (REITs) in that tokens allow a specific investment to link a specific real property, as opposed to REITs which typically support investment into pools of varied real estate assets. In a security token offering, the digital tokens are produced and distributed on a blockchain (STO). To award ownership, each ownership portion is transformed into a token and then encrypted.

Read also: How to Buy Real Estate Using Cryptocurrency?

The sale of Aspen Coins, one of the first profitable commercial real estate STOs raised almost US$18 million in 2018. These digital tokens represented fractional ownership of the opulent St. Regis Aspen Resort in Colorado, USA.

There are numerous such instances, like a project in the United States that aims to fund $100 million by issuing 100 million tokens at $1 each for a 24-story, 374-unit multifamily residential building in downtown San Jose that is being constructed by Alterra Worldwide.

Benefits of real estate tokenization

  • Lower barrier to entry

Real estate tokenization facilitates small-scale investor engagement and decreases entry barriers for retail investors by permitting investing in fractional pieces of real estate.

  • Ability to create liquidity

Blockchain technology makes it simple and safe to transfer real estate tokens, enabling investors to diversify their portfolios, lower risk, and increase liquidity in the real estate market.

  • Lower transactional costs

Blockchain technology offers the ability to simplify investment transactions and reduce transaction costs through automated procedures and a permanent, unchangeable digital record.

  • More transparent and efficient transactions 

Blockchain transactions are transparent and irreversible because of the decentralized nature of blockchains, which makes them perfect for the real estate industry with its many parties and intricate processes. Smart contracts that are automatically generated do not include any humans in the transaction process, which makes unfair trades impossible. There is no paperwork or waiting period for transaction completion in a blockchain-based system. Quick decisions and transactions are the outcomes of this. When using blockchain for real estate transactions, there are no set office hours like there are in traditional banking. Instead, the system operates transparently and continuously.

  • Opportunity for small-scale investors 

Real estate is typically regarded as an exclusive class of investment. However, tokenization has made real estate investment possible for smaller investors as well. If investors don’t have vast funds, the excessive cost of real estate assets sometimes discourages them from participating. But things have changed since real estate is now available to small-scale and individual investors thanks to the tokenization of the industry. Tokenization breaks up enormous assets into smaller fractions, making them more inexpensive and available to individuals who are interested.

  • A free-flowing market 

Overly regulated and frequently prejudiced centralized banking systems are harmful to market freedom. The real estate industry now has access to a decentralized, bias-free financial system thanks to blockchain-based tokenization. Each stakeholder has some degree of control over the outcome, and they decide as a group. A market that is streamlined and offers all players an equal chance to flourish results from the removal of unjustified barriers.

  • Decrease in counterparty risk 

It is difficult to track longer transaction chains. The pre-tokenized real estate age presented a dilemma since third parties complicated and distorted the situation. Things are improved from a regulatory standpoint by smart contracts, a crucial component of blockchain-based transactions. The chain of transactions is kept short and free of hazards brought on by weak links with minimal human involvement. Because of this, there is a greatly diminished, if not entirely gone, danger of counterparty participation.

Limitations of Real Estate Tokenization

  • Smart contract security loopholes

The blockchain network is well secure. But in smart contracts, you can find loopholes that need to be fixed. Hackers are always trying to sneak into the code and steal money from smart contracts. If the smart contract has been diligently audited, the money isn’t secure. A simple hack or a system glitch could rob the assets of real estate investors. In the worst case, once these assets are lost, their recovery is impossible.

  • Complex licensing requirements 

The tokenization of real estate assets needs licensed platforms for the operations and management of STOs (security token offerings) to be regulated. The process of achieving a license is a bit complex. Even before the licensing stage, you need to go through multiple phases of trial and error and recurrent tests so they can be successful.

  • Regulatory issues

Many people who are working in regulatory authorities and real estate employees have no idea how blockchain technology works and eliminates the issues the sector is facing. These things lead to a poor regulatory environment and generate hurdles for all stakeholders. Regulatory uncertainty dampens the investors’ trust, resulting in poor growth.

  • Tax complexities

Many Tax regimes haven’t clear cryptocurrency tax legislation, which is an issue for stakeholders. Despite the fact that the benefits of tokenization are acknowledged on a worldwide scale, a sound taxation system has not been implemented. Everyone concerned has doubts because there isn’t a single tax system in place.

Some points to be considered!

  • Securities law implications

Generally, the tokenization of real estate will be considered security but an analysis of each specific token should be considered at the outset. If the token is a security, the issuance of such a token will be subject to the applicable prospectus requirements or reliance on an exemption, such as the “accredited investor” exemption. In addition to the prospectus requirements, the issuer must consider the applicable registration requirements.

  • Reconciliation with the land registries

Real estate tokenization requires reconciling the applicable transaction with the current systems of land registration. Each jurisdiction of Canada has its land registration system, and an issuer of a real estate token will be required to reconcile the transaction with the land registration systems of the jurisdictions where the underlying real estate is located.

Top 5 Real Estate Tokenization Companies

Blockchain App Factory

One of the first businesses to tokenize real estate as more than just a qualified Web3 service was Blockchain App Factory. The company is among the top tokenization platforms in real estate across both the physical world and virtual worlds. The business is present throughout the world, it should be noted. Since the company’s professionals are familiar with the real estate tokenization factors, they make sure that all necessary procedures are followed before distributing client project tokens. The business is a wonderful fit for any startup hoping to succeed in the Web3 real estate sector because it has expertise in consultation, legal matters, programming, testing, and promotions.

Appwrk

A Web3 company called Appwrk is engaged in the tokenization of real estate among other real estate token platforms. The company has established a professional strategy for its real estate asset digitization projects that guarantee the project turns out as planned for clients. The business offers its skills in transaction structure, digitization, technology, distribution, and marketing, as well as post-launch assistance to tokenize real estate. If desired, one might even acquire a platform like a token marketplace in addition to tokens. The company’s blockchain developers have completed a number of noteworthy projects on Web3 real estate, and as a result, they have established a solid name in the rapidly increasing Web3 community.

SolidBlock

SolidBlock is a unique company that mostly operates in Israel and provides real estate tokenization development services. It describes itself as a company that offers tokenization as a service. The company helps entrepreneurs turn their real estate into blockchain-based tokens and makes it possible for them to raise money using those tokens. SolidBlock has quickly expanded in a specialized industry thanks to the ideal group of luminaries in development, analysis, legal issues, marketing, and leadership. These services are offered in an admirable manner. For asset fractionalization & security token offering campaigns, the company excels in producing real estate tokens.

Somish

For startup enthusiasts looking to tokenize real estate assets, Somish has been another option. Young people with extensive experience working with Web3 apps make up the organization. Commercial, residential, & trophy real estate tokenizations are the company’s areas of expertise. Additionally, it provides partner networking services, compliance insurance, Web3 real estate advice, and security token offering (STO) services. Additionally, Somish has received other honors, such as hackathon victories, ongoing open-source programming partnerships, as well as technological contributions to the Web3 community.

Blockchain Firm

Blockchain Firm, a seasoned player in the Web3 market, provides excellent real estate tokenization development services. The business offers a wide range of services on the domain, such as the creation of platforms for real estate listings, hybrid tokenization, fractional tokenization, crowdfunding, leasing and rental assistance, and loan & mortgage facilitation. For Web3 real estate, teams at the Blockchain Firm also work on planning, smart contracts, NFT development, website development, platform development, & marketing services. The company has offices across a few nations, a substantial global presence, and extensive expertise working on certain well-known Web3 projects.

Tokenization’s role in the future

Tokenization offers a practical and affordable way to invest in real estate assets, but because it is a relatively new venture, regulators have not yet established a clear set of regulations. Which regulatory frameworks will be used depends on the type of asset being tokenized.

Real estate tokenization has the potential to revolutionize real estate investment by increasing liquidity in a predominately illiquid asset class, lowering entry barriers for retail investors, and lowering transaction costs. However, market participants currently face challenges related to clear market regulation, reconciliation with land title registries, and the requirement for centralized reporting of transactions.

Read also: What is the Future of Crypto Real Estate?

Real estate professionals, including those in the legal, financial, and real estate fields, should be consulted if investors or owners of real property are interested in profiting from the trend of real estate tokenization.

Conclusion

As the guide to real estate tokenization is coming to an end, A decentralized, bias-free financial system has been brought to the real estate sector thanks to the blockchain as the guide to real estate tokenization is coming to an end-based tokenization. Liquidity increases during tokenization as real estate is fractionalized. People sell tokens rather than the entire property at once, which causes a fast shift of ownership. Tokenization is bringing about some truly amazing changes to the real estate sector. A wider variety of participants and developers are drawn to the process of participating in or investing in real estate.

Top Real Estate Tokenization Development Companies in 2025

Posted on by Shipra

Real Estate Tokenization Development Companies

Due to several technological developments made in this field, the blockchain industry is growing very quickly. These quick-fire developments caught everyone off guard. Among these developments, the Real Estate Tokenization Development is one that is gaining popularity with investors.

The real estate sector has also been affected by the expanded reach of this industry. Due to entry obstacles and the complicated concerns that arise when purchasing any property, there were formerly many restrictions on the real estate market. But since the idea of tokenization was introduced to the real estate sector, everything has changed because even tiny investors with limited resources can now invest and acquire assets.

We are here to help you through this blog if you need clarification on real estate tokenization. Let’s continue the In-depth discussions on real estate tokenization and also real estate tokenization companies for 2025 will be covered in this blog.

How does real estate tokenization work?

Real estate is fractionalized into tokens and maintained on a decentralized database through the process of real estate tokenization. The term “blockchain” refers to this decentralized database, which functions as a kind of electronic ledger for information storage. NFTs and real estate tokens are comparable. A real estate token might stand for any of the following:

  • ownership of a portion of real estate
  • ownership of the whole piece of real estate
  • an ownership stake in a company that manages real estate
  • a stake in a loan with real estate as security
  • a claim to a portion of the earnings derived from real estate

Real estate tokens differ from Real estate investment trusts (REITs) in that tokens allow a specific investment to link a specific real property, as opposed to REITs which typically support investment into pools of varied real estate assets. In a security token offering, the digital tokens are produced and distributed on a blockchain (STO). To award ownership, each ownership portion is transformed into a token and then encrypted.

The sale of Aspen Coins, one of the first profitable commercial real estate STOs raised almost US$18 million in 2018. These digital tokens represented fractional ownership of the opulent St. Regis Aspen Resort in Colorado, USA.

There are numerous such instances, like a project in the United States that aims to fund $100 million by issuing 100 million tokens at $1 each for a 24-story, 374-unit multifamily residential building in downtown San Jose that is being constructed by Alterra Worldwide.

Benefits of real estate tokenization platform

  • Lower barrier to entry

Real estate tokenization facilitates small-scale investor engagement and decreases entry barriers for retail investors by permitting investing in fractional pieces of real estate.

  • Ability to create liquidity

Blockchain technology makes it simple and safe to transfer real estate tokens, enabling investors to diversify their portfolios, lower risk, and increase liquidity in the real estate market.

  • Lower transactional costs

Blockchain technology offers the ability to simplify investment transactions and reduce transaction costs through automated procedures and a permanent, unchangeable digital record.

  • More transparent and efficient transactions 

Blockchain transactions are transparent and irreversible because of the decentralized nature of blockchains, which makes them perfect for the real estate industry with its many parties and intricate processes. Smart contracts that are automatically generated do not include any humans in the transaction process, which makes unfair trades impossible. There is no paperwork or waiting period for transaction completion in a blockchain-based system. Quick decisions and transactions are the outcomes of this. When using blockchain for real estate transactions, there are no set office hours like there are in traditional banking. Instead, the system operates transparently and continuously.

  • Opportunity for small-scale investors 

Real estate is typically regarded as an exclusive class of investment. However, tokenization has made real estate investment possible for smaller investors as well. If investors don’t have vast funds, the excessive cost of real estate assets sometimes discourages them from participating. But things have changed since real estate is now available to small-scale and individual investors thanks to the tokenization of the industry. Tokenization breaks up enormous assets into smaller fractions, making them more inexpensive and available to individuals who are interested.

  • A free-flowing market 

Overly regulated and frequently prejudiced centralized banking systems are harmful to market freedom. The real estate industry now has access to a decentralized, bias-free financial system thanks to blockchain-based tokenization. Each stakeholder has some degree of control over the outcome, and they decide as a group. A market that is streamlined and offers all players an equal chance to flourish results from the removal of unjustified barriers.

  • Decrease in counterparty risk 

It is difficult to track longer transaction chains. The pre-tokenized real estate age presented a dilemma since third parties complicated and distorted the situation. Things are improved from a regulatory standpoint by smart contracts, a crucial component of blockchain-based transactions. The chain of transactions is kept short and free of hazards brought on by weak links with minimal human involvement. Because of this, there is a greatly diminished, if not entirely gone, the danger of counterparty participation.

Read more: 15 Blockchain Companies Shaping the Real Estate Industry

Limitations of real estate tokenization platform

  • Smart contract security loopholes

The blockchain network is well secure. But in smart contracts, you can find loopholes that need to be fixed. Hackers are always trying to sneak into the code and steal money from smart contracts. If the smart contract has been diligently audited, the money isn’t secure. A simple hack or a system glitch could rob the assets of real estate investors. In the worst case, once these assets are lost, their recovery is impossible.

  • Complex licensing requirements 

The tokenization of real estate assets needs licensed platforms for the operations and management of STOs (security token offerings) to be regulated. The process of achieving a license is a bit complex. Even before the licensing stage, you need to go through multiple phases of trial and error and recurrent tests so they can be successful.

  • Regulatory issues

Many people who are working in regulatory authorities and real estate employees have no idea how blockchain technology works and eliminates the issues the sector is facing. These things lead to a poor regulatory environment and generate hurdles for all stakeholders. Regulatory uncertainty dampens the investors’ trust, resulting in poor growth.

  • Tax complexities

Many Tax regimes haven’t clear cryptocurrency tax legislation, which is an issue for stakeholders. Despite the fact that the benefits of tokenization are acknowledged on a worldwide scale, a sound taxation system has not been implemented. Everyone concerned has doubts because there isn’t a single tax system in place.

Some points to be considered!

  • Securities law implications

Generally, the tokenization of real estate will be considered security but an analysis of each specific token should be considered at the outset. If the token is a security, the issuance of such a token will be subject to the applicable prospectus requirements or reliance on an exemption, such as the “accredited investor” exemption.

In addition to the prospectus requirements, the issuer must consider the applicable registration requirements.

  • Reconciliation with the land registries

Real estate tokenization companies requires reconciling the applicable transaction with the current systems of land registration. Each jurisdiction of Canada has its land registration system, and an issuer of a real estate token will be required to reconcile the transaction with the land registration systems of the jurisdictions where the underlying real estate is located.

Top 5 real estate tokenization companies

Blockchain App Factory

Blockchain App Factory

One of the first businesses to tokenize real estate as more than just a qualified Web3 service was Blockchain App Factory. The company is among the top tokenization platforms in real estate across both the physical world and virtual worlds. The business is present throughout the world, it should be noted. Since the company’s professionals are familiar with the real estate tokenization factors, they make sure that all necessary procedures are followed before distributing client project tokens. The business is a wonderful fit for any startup hoping to succeed in the Web3 real estate sector because it has expertise in consultation, legal matters, programming, testing, and promotions.

Appwrk

Appwrk

A Web3 company called Appwrk is engaged in tokenization of real estate among other real estate token platform. The company has established a professional strategy to its real estate asset digitization projects that guarantees the project turns out as planned for clients. The business offers its skills in transaction structure, digitization, technology, distribution, marketing, as well as post-launch assistance to tokenize real estate. If desired, one might even acquire a platform like a token marketplace in addition to tokens. The company’s blockchain developers have completed a number of noteworthy projects on Web3 real estate, and as a result, they have established a solid name in the rapidly increasing Web3 community.

SolidBlock

SolidBlock real estate tokenization

SolidBlock is a unique company that mostly operates in Israel and provides real estate tokenization services. It describes itself as a company that offers tokenization as a service. The company helps entrepreneurs turn their real estate in to the blockchain-based tokens and makes it possible for them to raise money using those tokens. SolidBlock has quickly expanded in a specialised industry thanks to the ideal group of luminaries in development, analysis, legal issues, marketing, and leadership. These services are offered in an admirable manner. For asset fractionalization & security token offering campaigns, the company excels in producing real estate tokens.

Somish

Somish real estate tokenization

For startup enthusiasts looking to tokenize real estate assets, Somish has been another option. Young people with extensive experience working with Web3 apps make up the organisation. Commercial, residential, & trophy real estate tokenizations are the company’s areas of expertise. Additionally, it provides partner networking services, compliance insurance, Web3 real estate advice, and security token offering (STO) services. Additionally, Somish has received other honours, such as hackathon victories, ongoing open-source programming partnerships, as well as technological contributions to the Web3 community.

Blockchain Firm

Blockchain Firm real estate tokenization

Blockchain Firm, a seasoned player in the Web3 market, provides excellent real estate tokenization services. The business offers a wide range of services on the domain, such as the creation of platforms for real estate listings, hybrid tokenization, fractional tokenization, crowdfunding, leasing and rental assistance, and loan & mortgage facilitation. For Web3 real estate, teams at the Blockchain Firm also work on planning, smart contracts, NFT development, website development, platform development, & marketing services. The company has offices across a few nations, a substantial global presence, and extensive expertise working on certain well-known Web3 projects.

Conclusion

The top 5 real estate tokenization companies in 2025 have been explained, along with real estate tokenization itself. Currently, there has been a rapid rise in public awareness of digital real estate, which has made it easier for these enterprises to connect with communities and generate long-term reputation and financial success. Web3 startup enthusiasts can contact one of the aforementioned top tokenization platformsto actualize their ideas in order to launch a business based on the domain in the real world via metaverses. Additionally, blockchain technology may make it simpler for people to access real estate in the following ten years, and firms who launch early may benefit from establishing a reputation.

 

Top 9 Real Estate NFT Marketplace Platforms

Posted on by Shipra

Top 9 Real Estate NFT Marketplace Platforms

Explore non-fungible token (NFT) real estate firms if you’re seeking a novel approach to investing in real estate. These platforms let investors buy and trade property tokens using blockchain technology. Since each token is distinct, it offers a safer investment than conventional real estate.

The top nft real estate marketplace will be covered in this post, along with some tips that might help you better comprehend this new investment possibility.

What are Non-Fungible Tokens or NFTs?

NFTs, or non-fungible tokens, are digital assets having distinct provenance that can only be established through known history here on the Ethereum blockchain. They are frequently employed for tracking & authenticating tangible assets, such as works of art or gaming components.

NFTs are becoming more and more well-liked because they provide a safer option to invest in digital assets inside the metaverse. NFT artwork, music, or other works cannot be reproduced, making them more valuable and far safer investments than conventional assets like equities and bonds, which are simple to counterfeit.

Investment in real estate NFTs has a number of benefits. Some of them are as follows: On the Ethereum blockchain, real estate NFTs are operated. Investments in real estate and transactions as NFTs are distinctive and less likely to be similar to other NFTs.

Advantages of Real Estate NFT Marketplace 

Flexibility 

You have the choice of placing your eggs inside your selected baskets using either an F-NFT or a conventional complete NFT. Additionally, you are free to trade, sell, or purchase property whenever you like. This also enables everyone, regardless of wealth or geography, to invest in real estate.

Do it yourself

There is no requirement that you use a real estate broker. With other investors, you can immediately purchase, sell, & trade any real estate NFTs.

Faster sales transactions. 

The procedure of purchasing NFT properties is quicker and involves less waiting. This is so because real estate NFTs use smart contracts, which automate numerous processes, making it a very effective way to acquire & sell a property.

Anyone can invest 

The benefit of NFTs in real estate is that anyone in the globe can buy an NFT property. The traditional real estate industry, which can be extremely exclusive for those who can afford a particular house, is in opposition to this.

Disadvantages of Real Estate NFT Marketplace 

Although investing in real estate as NFTs, whether it be actual or virtual, can be quite profitable, there are a few drawbacks to consider before making a significant investment. Some of them are as follows:

Volatile

You may not able to recoup the whole cost of purchasing your property when you sell it. You might not get the same profit from your investment as you had hoped for in the event that the value of the property drops.

Directly own the real NFT property

Regrettably, NFTs are not recognised as property titles under existing law. Since actual physical real estate cannot be immediately tokenized, the investor must hold the property through a legal corporation as a workaround.

Current laws 

As NFTs in real estate are still relatively new, many nations still lack the necessary education regarding real estate tokenization. Legal ownership following your digital acquisition of a property like an NFT may still be ambiguous, and institutions must yet find a way to keep up with this new technology to alter how deeds are recorded.

Buying real estate NFTs 

In contrast to real-world NFTs, online real estate NFTs might not be at risk in this regard. You could have to deal with unreported mortgages & unpaid real estate taxes after purchasing the property. When purchasing real estate, if you skip the usual due research, you can encounter more issues than you anticipated.

Read more: What is the Future of Crypto Real Estate?

Top 9 NFT Real Estate Companies

Although NFT real estate firms have only recently entered the market, they are already having a significant impact. The top 12 NFT real estate marketplaces to avoid are listed below:

1. Decentraland

A virtual environment called Decentraland was established in 2015. The primary goal of the game is to construct and amass property in the NFT virtual area known as “land,” which can be broken up into pieces. Mana, the cryptocurrency token with this new digital world order, is used to purchase these land plots.

You will have permanent ownership of the land as soon as you register, create your digital wallet, & buy your chunk. You are free to do what you want with your digital environment since you have total control over it. This involves constructing things, making games, or producing art. You can lease or sell your land to the other players if you don’t want to utilize it yourself.

2. Polka City

A ground-breaking technology called Polka City enables users to own virtual properties and make money. Due to the contract-based nature of these NFT assets, it is simple for you to create income that is paid out in the native POLC coin.

Starting Polka City is a rather simple process. You can select the investment type that best suits your preferences when you register for our real estate marketplace. Furthermore, no new blockchain wallet is required. Using your current Ethereum wallet, you can start making money at Polka City.

3. SuperWorld

SuperWorld is a marketplace for digital assets where you can make your world and generate money off of it. You can trade, buy, and sell various NFT pieces of land, which in the actual world have an area of about 100m by 100m, using its real estate platform. In your planet, a stadium that size would be appropriate for concertgoers to attend live performances.

You can get going with ease in SuperWorld. All you’ll need is a concept for your planet; no coding expertise or familiarity with blockchain technology is required. Here, you’ll have the chance to make money off of your property through, to mention a few, analytics, gaming, digital commerce, & e-commerce.

4. Cryptovoxels

It feels like entering a completely different reality when one enters the Cryptovoxels virtual world & metaverse. The NFT platform, which was established in 2018, is a virtual space where you may purchase land and create your own tiny planet anyway you choose. This implies that you can modify your so-called voxel pieces of land to develop a game, produce art, or even launch your own company. You can even sell your land to other competitors on the market if you become weary of it.

The intriguing thing regarding Cryptovoxels is you are able to explore the marketplace without an Ethereum wallet. You can customize your avatar and have a real customer experience with day & night cycles, weather, as well as other factors. You can purchase land on the NFT Platform, OpenSea, once you’re ready to do so.

5. Upland

In order to map the real estate market, Upland, a virtual land marketplace, employs real-world locations. As a result, users can exchange their gained lands for genuine US dollars. Through its in-game companies, Upland also enables players to interact with other gamers in order to make money and make new friends.

Inside this new virtual economy, you can make money in real estate by renting out your houses, charging admission fees to guests, or selling your property at a profit. You can also make money at Upland by starting your own business.

6. Somnium Space

Somnium Space is a groundbreaking new platform that was founded in 2017 and released in 2018. It will revolutionize gaming & virtual reality (VR). The business developed an open-source software platform based on the Ethereum Blockchain that enables the purchase and customization of virtual assets like vacant land, parks, and structures.

Users of Somnium Space can now own virtual reality (VR) assets, including avatars and digital commodities. Integrating programmatic advertising plugins that track engagement rates and conversion rates into the VR games, develops a new economy where makers can immediately monetize their work.

7. The Sandbox

is a cutting-edge virtual environment fueled by Ethereum blockchain technology where users may create custom video games from the ground up using commercially available or pre-built building pieces. You must utilize $SAND, the platform’s utility token, and money, to purchase real estate and other assets via their marketplace.

Being able to construct virtual experiences like dioramas & games and place items like buildings, cars, or furniture gives purchasing land on Sandbox a lot of options. You have the ability to create Estates on this site if you own land.

8. Omni-PSI

A cutting-edge, ground-breaking new platform called Omni-PSI was developed in collaboration with OMNI Real Estate Group & Passive Income and released last year. It is said to be the first fractional real estate NFT marketplace platform in the world, allowing sellers and buyers of tokenized property to buy fractionalized assets—assets that are parts of properties rather than complete ones. Through their NFT marketplace, Omni-PSI collects money through their sales procedure. They buy the lot & rent it out after they hit a hard cap price particular to the property. Based on the number of shares each fractional NFT owner has, they each receive a portion of the rent that these renters pay.

9. Fraction

Fraction is a brand-new real estate company operating on the Ethereum blockchain that has obtained the necessary Thai SEC authorization. Including its $150 minimum purchase requirements to buy even a portion of an upscale real estate project, the company seeks to increase accessibility for everyone to invest in real estate. You can invest in a range of assets using Fraction’s plug-and-play platform, from tiny sums to private funds. This offers the benefit of demonstrating that the platform was created with your wants and objectives in mind.

Bonus: Propy

Propy is yet another shop for all of your real estate needs and is powered by Web3 Technology. They have everything covered, from discovering homes on their thorough list to owning them or even negotiating deals with sellers.

Propy debuted its NFT platform in the US last January 2022, enabling the purchase and sale of real estate as an NFT. The buyer can quickly access the legal paperwork proving ownership of the property by logging real estate transactions on the blockchain. It is important to understand that real-world property ownership is not fractional. They will acquire not only a Florida property but also a US-based company that holds title to the same land.

Conclusion

The methods by which we are able to use NFTs to invest in actual or virtual real estate will change while Ethereum blockchain technology develops. Even if its application in this sector is still very new and experimental, businesses and investors that share the vision already are starting to see NFTs’ potential as the real estate investments of the future. Institutions and people that are interested in participating in this developing field should monitor its progress and be ready to get involved when the right time comes.

This is a potential worldwide phenomenon waiting to happen with more time, knowledge, and understanding of what NFTs are, how they really operate, and the risks and laws surrounding both physical and virtual characteristics.

 

Real Estate Tokenization: The Future of Real Estate Business

Posted on by Shipra

 

Real Estate Tokenization: The Future of Real Estate Business

The real estate industry is one of the largest business sectors in the global market. It is growing at the rate of 5%, with China holding the largest share in the market’s capitalization.

The market slowed down during the 2019 pandemic, but it has since begun to regain traction due to the interest and participation of global investors.

The business sector is vast, with the involvement of international affiliates. But, it lacks in the processing or transferring of ownership from one member to another. The transaction process takes a lot of time, and it is complex.

The introduction of blockchain technology has been revolutionizing many business sectors across the globe, and real estate is one of them. It has simplified the transaction process and has eliminated the need for intermediaries through real estate tokenization.

Let’s get to know about tokenization before getting into real estate tokenization.

Tokenization — Brief Introduction Of Assets To NFTs

Tokenization is the latest technique of converting real-world assets into digital forms, i.e., NFTs using blockchain technology. Tokenizing an asset increases its global visibility and makes it easier for purchasers to buy them.

Tokenization helps sellers list their assets on a digital marketplace, where interested buyers and investors can buy them directly using cryptocurrencies or other monetary forms.

It eliminates the need for a centralized party to oversee the transactions and reduces the fees associated with the transaction. It provides complete control over the assets to the buyers.

Real Estate Tokenization: NFTs and Real Estate Properties

The advent of NFTs has impacted the real estate business sector. NFTs have simplified and reliably improved how the real estate sector operates. By attracting investors and traders to the market, the combination of NFT with real estate has created new opportunities.

Transaction of property ownership is one of the biggest problems with real estate investment. Buying a real estate property through the traditional method requires a tonne of paperwork; real estate tokenization, on the other hand, is more streamlined and effective.

Due to the inclusion of NFTs in the real estate market, buyers can rapidly trace asset ownership. The benefits of using non-fungible tokens with credible, transparent, and immutable ownership proof are the key factors for the increase in the popularity of real estate tokenization.

Real estate purchasing has become digital and liquid due to blockchain technology. Real estate tokenization has allowed the selling of real-world assets into smaller pieces. A few years ago, the idea of owning portions of assets and frequently transferring them without incurring major transaction expenses seemed unfathomable. Real estate tokenization has been made possible by the adoption of blockchain technology in the real estate business sector.

Functioning of Real Estate Tokenization

Any real estate asset, including retail, residential, and exhibition properties, can be tokenized using blockchains. Real estate tokenization uses a smart contract, i.e., automated software integrated into a blockchain ecosystem to manage all the real estate tokens in the digital platform.

Anyone who purchases or possesses a real estate token has a claim in the underlying real estate property. Real estate token owners are in control of the underlying asset and any associated profits. Real estate owners can easily digitize their assets and raise money for projects on a global scale by tokenizing their real estate properties such as houses, plots, complexes, etc. It makes commerce easier and allows valuable commercial real estate, such as malls, and shopping centers, to be divided into smaller units for easier sales.

Real Estate Tokenization Categories

Real Estate Tokenization for Commercial properties

Commercial tokenization is the process of applying legal protocols to tokenize commercial real estate for enterprises. Commercial property owners, such as office buildings, retail stores, etc., can sell their assets worldwide utilizing blockchain technology.

Real Estate Tokenization of Household properties

For investors and asset buyers, household tokenization divides residential real estate holdings into fractional ownerships. Digitizing these assets in the blockchain space enables small-time sellers to profit from the global market with a large number of buyers and investors.

Benefits of Real Estate Tokenization

Blockchain transactions are best suited for the real estate sector since they are transparent, safe, and irrevocable. They have also eliminated third parties and complex procedures during transactions. Smart contracts automate the complete process, thus reducing the fees and time duration for ownership transfer.

By presenting the asset to a global audience through a digital platform, tokenization has made it possible to raise the value of assets and eliminate their lack of liquidity. When real estate is fractionalized and sold using tokens, its liquidity increases. By selling their tokens, owners of tokenized goods can instantaneously transfer divided ownership without selling the full asset.

Small-scale buyers and individual investors can now purchase real estate due to tokenization which has revolutionized the industry. Through tokenization, large assets are divided into tiny parts, making them accessible and affordable to all potential buyers.

Read also: What You Need to Know About Investing in Tokenized Real Estate

The real estate sector establishes a reliable, open, and highly secure financial system using blockchain technology. Every stakeholder is in charge, and every network participant votes on any updates. The real estate market has been streamlined by removing time-consuming limitations, and everyone now has an equal opportunity to grow and earn.

Final Thoughts

The future of the real estate business is brighter with real estate tokenization. The popularity of tokenization has increased due to the global reach of assets with blockchain technology. Property owners can now sell their assets quickly without any hassles. The world is looking towards tokenization for its heap of benefits. The digital market is revolutionizing the world with innovations, and real estate tokenization has been an enormous boon for property owners worldwide.

Blog Credits: Medium

Real Estate Tokenization — Complete Guide for 2022 & 2023

Posted on by Shipra

 

Real Estate Tokenization — Complete Guide for 2022 & 2023

The real estate sector is going through a significant transformation as a result of the adoption of blockchain technology. Blockchain-based real estate tokenization has allowed people with a flair for real estate business who previously needed more funds to do so. Inherent problems with the sector, such as a lack of transparency, trust, and speed, have also been resolved.

What kinds of real estate tokenization exist?

The following categories can be used to categorize the market for real estate asset tokenization:

  • Securitized assets on the blockchain: Securitized blockchain assets lead the market in 2022. The most recent report states that real estate tokens will make up almost 89% of all traded security tokens in 2022.
  • Fully-tokenized assets on the blockchain: They are not actively traded on secondary markets
  • Assets that have been fully tokenized: The secondary market is actively trading these products.

How do real estate asset tokenization services function?

Real estate has traditionally been one of the least liquid asset classes. It’s because real estate transactions demand a great deal of property management, legal skills, and extensive planning.

Read also: What You Need to Know About Investing in Tokenized Real Estate

By following these five stages, digital asset tokenization on blockchain assists in overcoming all these difficulties:

Stage 1- Structuring the Deal for smart contracts

Regulations based on jurisdiction and the shareholder type are important factors for a real estate tokenization asset. The terms of the tokenization are previously set forth for both current and potential investors.

Stage 2- Digitization of assets

Security tokens are issued along with smart contracts that store the traditional information of the real estate transaction on the blockchain.

Four structures are employed to securitize the asset and convert it into an investment vehicle on the blockchain:

2.1 SPV Structure

The term “SPV” stands for Single Asset Special Purpose Vehicle, which enables qualified institutional buyers or accredited investors to take part in the transaction. Tokens serve as a representation of the shares of the real estate property in this structure.

2.2 Real estate fund Structure

The token represents shares of this fund, which functions like a private equity fund. Only qualified institutional buyers are permitted to purchase properties from this equity fund, which is invested in their portfolios.

2.3 Finance Structure

Real estate is tokenized as a digital asset to facilitate fundraising in this structure. The tokens are offered for purchase by accredited institutional buyers or retail investors on the secondary market.

2.4 Real Estate Investment Trust (REIT) Structure

Although this structure is accessible to retail investors, operating it is more expensive than the others. Investors can create digitally-enhanced shares through REITs. Furthermore, REIT real estate token owners are entitled to operate income similarly to conventional investors.

The fundamental guidelines for smart contracts are established based on these structures.

Stage 3- Technology Selection

The choice of technology is essential for real estate tokenization. Following the selection of your asset tokenization services provider, you must decide on three crucial issues:

3.1 Blockchain & token selection

The right blockchain must be chosen for your real estate tokens. Transaction speed, gas costs per transaction, and the security of the blockchain are the main criteria for choosing the blockchain to add transfer limitations to your real estate token.

3.2 KYC/AML verification

Investors or token purchasers must complete the KYC/AML process on the platform where they purchase real estate tokens.

3.3 Primary or Secondary Marketplace

Buyers must have access to a marketplace where primary or secondary token sales of digital assets will be supported through the platform.

Stage 4- Token distribution

Token creation and distribution must be completed after the development and implementation of the smart contracts. Platforms for real asset tokenization may provide buyers with a range of payment options. Token distribution typically takes place in three ways:

4.1 Primary Distribution:

Investors receive these newly created tokens in exchange for their initial financial investment in the projects.

4.2 Secondary Trading:

Tokenization is crucial because it increases liquidity. Tokens are listed for secondary trading on other exchanges so that other investors can trade them with other tokens or users.

Stage 5- Post Tokenization Support

An asset tokenization services provider offers post-tokenization assistance with navigating mortgage difficulties, legal problems, and activity tracking.

Conclusion

Real estate has been growing with recent technological advancements. Before the induction of blockchains, the process was different which was hard for the ones who did that business. But, now, with the tokenization of real estate, you can trade real estate assets easily, which is why the sector has become so incredible now. It is time for you to grab the benefits that the system provides; that way, you can make incredible happenings. Begin real estate tokenization now and make way for the new future.

Blog Credits: Medium

The tokenization of real estate: An introduction to fractional real estate investment

Posted on by Shipra

 

The tokenization of real estate: An introduction to fractional real estate investment

In recent years, real estate tokenization has emerged as an unconventional investment vehicle with advantages for both issuers and investors. The real estate sector now makes up about 40% of the digital securities market, amounting to approximately $200 million, as reported by Canadian-based digital securities company, Atlas One.

Real estate tokenization converts the value of real estate into a token stored on a blockchain, enabling digital ownership and transfer. These divisible tokens each present a fractional share of an ownership stake in that real estate. This article explores the emerging trend of real estate tokenization, as well as its primary benefits and the potential for it to revolutionize the real estate investment market.

How does real estate tokenization work?

Real estate tokenization is the process of fractionalizing real property into tokens stored on a decentralized database. This decentralized database stores information like a digital ledger and is commonly referred to as the blockchain. The distributed ledgers on which real estate tokens are captured are validated by the blockchain network, synchronized, and shared with all network participants almost instantaneously, permanently recording an accurate ledger of transactions generally accessible to the public.

Real estate tokens are similar to non-fungible tokens (NFTs), which are non-interchangeable units of data stored on a blockchain that can be sold and traded, with the exception that real estate tokens are generally tied to the value of a physical asset. A real estate token can represent, among other things:

  • Ownership of part of a real property
  • Ownership of the entire real property
  • An equity interest in an entity that controls real property
  • An interest in a debt secured by real property, or
  • A right to share in the profits generated by real property

Real estate tokens can also be differentiated from real estate investment trusts (REITs) since they allow for a specific investment linked to a particular real property, whereas REITs typically facilitate investment into pools of various real estate assets.

The digital tokens are created and issued on a blockchain during a security token offering (STO), also referred to as a tokenized security offering or a tokenized asset offering. Each fraction of ownership is converted into a token and then encrypted to grant ownership. Ownership can then be transferred directly from investor to investor on digital securities marketplaces using alternative trading systems (ATSs) almost instantly for a relatively low fee.

One of the first successful commercial real estate STOs raised approximately US$18 million in 2018 through the issuance of Aspen Coins, where digital tokens represented fractional ownership of the luxury St. Regis Aspen Resort in Colorado, USA.

Read also: How to Buy Real Estate Using Cryptocurrency?

There are a number of other examples, such as a project in the United States that is aiming to raise US$100 million by offering 100 million tokens at US$1 each for a 24-story, a 374-unit multifamily residential project in downtown San Jose, which is being developed by Alterra Worldwide.

Benefits of real estate tokenization

1. Lower barrier to entry

By facilitating investment in fractional portions of real property, real estate tokenization enables small-scale investor participation and lowers barriers to entry for retail investors. Lower minimums and smaller investment amounts can thus be leveraged to benefit from the potential high returns available to traditional real estate investments – which typically require significantly more upfront capital.

2. Ability to create liquidity

Real estate tokens are easily and securely transferable by way of blockchain technology, allowing investors to diversify their portfolios, minimize risk and create liquidity in the real estate market. Conversely, issuers are provided access to a wider pool of investors.

3. Lower transactional costs

Through automated processes and a permanent unchangeable digital ledger, blockchain technology has the potential to streamline investment transactions and lower transaction costs. As a result, investment transactions are generally completed faster and at a lower cost to the parties involved, facilitating higher returns for the investor. Tokenization also provides a host of other benefits, such as real-time capitalization table tracking, improved accessibility, and greater transparency for potential investors.

Key considerations regarding real estate tokenization

1. Securities law implications

Generally, the tokenization of real estate will be considered a security but an analysis of each specific token should be considered at the outset. If the token is a security, the issuance of such a token will be subject to the applicable prospectus requirements or reliance on an exemption, such as the “accredited investor” exemption.

In addition to the prospectus requirements, the issuer must consider the applicable registration requirements.

2. Reconciliation with the land registries

Real estate tokenization requires reconciling the applicable transaction with the current systems of land registration.

As each jurisdiction in Canada has its own land registration system, an issuer of a real estate token will be required to reconcile the transaction with the land registration systems of the jurisdictions where the underlying real estate is located.

The future of real estate tokenization

Tokenization provides a convenient and economical method of investing in real estate assets, but as a relatively new investment vehicle, regulators have yet to establish a consistent framework of rules that govern real estate tokenization.

The nature of the asset being tokenized impacts which regulatory frameworks will apply. Generally, as securities, tokens are subject to securities laws in Canada. Further, market confusion and knowledge gaps present challenges that must be overcome before real estate tokenization can be widely adopted.

Read also: Blockchain Technology Is Changing The Real Estate Industry

Real estate tokenization has the potential to transform real estate investment by increasing liquidity in a largely illiquid asset class, lowering barriers to entry for retail investors, and reducing transaction costs, but issues such as clear market regulation, reconciliation with land titles registries, and the need for centralized reporting of transactions currently present issues for market participants.

Investors and real property owners interested in capitalizing on the trend of real estate tokenization should seek advice from experts including, legal, financial, and real estate professionals.

Blog Credits: Dentons

What is the Future of Crypto Real Estate?

Posted on by Shipra

What is the Future of Crypto Real Estate (1)

Are you curious about how cryptocurrency is influencing the future of real estate? Blockchain technology has impacted many industries, with bitcoin boosting financial payments, foreign exchanges, and so on, and ICOs altering stock markets, venture capital, etc. In the not-too-distant future, these markets would essentially enable sellers to tokenizing their real estate assets, in this example, a home. 

Real Estate’s Cryptocurrency Future

In the following ways, blockchain technology is altering the condition of the real estate market:

  • Smart contracts versus Traditional contracts

The typical purchasing or selling real estate method is time-consuming and requires several parties. Banks, brokers, agents, attorneys, and other professionals are typically required to finish the procedure effectively.

Real estate brokers provide consumers with several real estate possibilities based on their tastes and budget. Lawyers and lawyers assist in comprehending various contract stipulations, among other things. These intermediate companies charge fees for their services, raising the housing cost.

Buyers must ensure they have the funds to pay these middlemen and the obligatory down payment.

In the real estate market, blockchain technology is introducing smart contracts. Smart contracts are contracts that execute themselves. There are no middlemen and no lengthy communication channels.

There are no waiting periods for payments to be moved, authorized, or processed. The parties involved are alerted as soon as the buyer pays the sum in digital currency.

  • Fractional ownership in Real estate for future

Crypto Real estate assets may be tokenized using a Blockchain network. It implies that sellers or property owners may divide their assets and sell them as smaller ventures to various investors.

This notion of fractional ownership might make buying real estate considerably more affordable and accessible to everyone.

An individual may not be able to acquire a whole property due to the high cost and increasing interest rates on home loans, but they may purchase smaller shares jointly.

Investors may band together to purchase pricey houses while saving money on upkeep and rent.

  • As a liquid asset property 

Property is often seen as an illiquid asset. Because, unlike bonds and equities, they cannot be turned into cash quickly. Selling a house might take many months, and the seller may be paid in installments.

Real estate becomes a liquid asset thanks to blockchain. Real estate tokenization may assist sellers in swiftly converting their property into fiat cash.

Read more: How to Buy Real Estate Using Cryptocurrency?

Market decentralization

Market Decentralization

We have been utilizing centralized networks for nearly every operation up until now. A single central authority oversees network use in centralized networks. Examples include social networking networks such as Facebook, banking institutions, etc.

Blockchain provides a decentralized network. The data is stored on numerous computer nodes rather than just one.

A hash algorithm is used to encrypt the data. Each data block includes information from the preceding data block. A data chain is established in this manner.

If there is an incursion, the hash value is changed. The chain is broken because there is a discrepancy in the information recorded between the blocks. This notifies the whole network.

As we can see, blockchain networks for real estate tokenization, such as presenting information such as home prices, signing property contracts, making down payments on house prices, and so on, may make things safer and more transparent.

Because no other entity may access or edit blockchain data records, consumers have greater control over their data.

There are various benefits to implementing blockchain technology in real estate. Furthermore, the housing market prognosis indicates that it is not far off. 

If you, as a company leader or CTO, want to enjoy the benefits of blockchain real estate, now is an excellent moment to enter the industry, considering the high demand for housing and the growing popularity of blockchain technology.

You may create a blockchain solution for real estate companies or integrate blockchain technology into current real estate applications.

To do any of this, you will require professional software engineers who are familiar with blockchain technology. Your development team should be familiar with various blockchain platforms, how they function, and the associated development tools and frameworks.

You may simply collaborate with these qualified developers for blockchain real-estate solutions by submitting your first product specs using this form. 

Real Estate cryptocurrency marketplaces

Real Estate Cryptocurrency Marketplaces

If real estate tokenization becomes broad, it will create buying and trading real estate easier and less costly for investors. However, real estate investing has traditionally been a haven for the wealthy. Because the assets are valuable, the entry hurdles are just too high for most individuals. 

The idea of fractional ownership is introduced through tokenization. Instead of purchasing a full property, you might own a portion of many properties. Investors may also combine their funds to purchase costly houses that would otherwise be out of reach. It also relieves investors of the additional expenditures connected with acquiring property, such as upkeep and lease.

Tokenization, in effect, alters the playing field and lowers the obstacle to access for real estate investment. Still, it also furnishes an extremely alluring means to invest, incorporating real estate’s huge returns with the stock market’s liquidity. Furthermore, since genuine properties back real estate tokens, they are significantly less hazardous and volatile than cryptocurrencies.

A Future Powered by Cryptocurrency

It is typically advised that you maintain any contract documents pertaining to your house purchase for the life of the loan, ideally longer. But why wait much longer? The IRS cannot pursue you for failing to submit a tax return in any particular year since there is no statute of limitations. As a result, the IRS advises that you maintain this data permanently.

There are further problems with printed copies of crucial documents. Although it is rare, treaties may be modified or counterfeited, encouraging fraudsters to trade residences that they do not possess. Of course, although the paper is fairly resistant when appropriately conserved, it degrades fast in the incorrect environment. Unknowingly storing your paper papers in a moist garage might render them illegible for months. This may be a huge issue if you’re ever requested to make them. Deeds are also important if you have property boundary issues with your neighbors.

So, if paper documents aren’t ideal, why aren’t we keeping them entirely online today? Because, at the moment, digital solutions are often no more secure than paper, if at all. Any digital records will be housed on centralized servers in the conventional real estate system. Your deed won’t get wet or catch fire, but it may be stolen by fraudsters or lost in an IT catastrophe.

Conclusion 

The dangerous nature of paper and traditional digital storage is hastening the adoption of tokenization in real estate and other sectors. Cryptocurrency for business is fast becoming a reality, with several firms already transitioning to a blockchain-based approach to managing their data assets.

 

Tokenizing Real Estate with Blockchain

Posted on by Shipra

Tokenizing Real Estate with Blockchain

Blockchain technologies seem to have a solution to most problems, even if the problem is that I need to sell my house fast. The merger between blockchain and tokenizing real estate promises to simplify and cheapen the process of buying and selling property. This process traditionally involves a sleuth of entities who each take a cut from the deal made between the buyer and seller. The bank, broker, seller, buyer, and local government all are involved in this process, and currently, any real estate transaction requires heaps of paperwork and hours of coordination between these entities and individuals.

A seller could, if unwilling to pay these fees, list their property for sale by owner (FSBO), but then she doesn’t have access to the MLS (multiple listing service) that real estate agents use to search for the property when they have a new buyer. Notoriously, the MLS is fragmented, walled off, and complex, so navigating it as a seller is a daunting task. However, transferring these property listings to a blockchain would mean opening up access to all the available properties for anyone to review. With each listing, the seller could advertise the price of their property as well as any terms and conditions which need to be met upon purchasing.

Read also: Get ready to start tokenizing your real estate assets-Real estate tokenization on board

How is the property secured financially and contractually? Smart contracts. Smart contracts are becoming popular, but they are far from being the standard method of finalizing contractual agreements. They are the same as paper contracts, however, they are digital. The difference is in how they are implemented and who is involved. Let’s take the platform Kickstarter as an example to demonstrate the difference between paper and smart contracts. Kickstarter is a platform through which product teams can request funding from supporters for their newly-developed products, or products in the making. The platform acts as an intermediary between these supporters and product teams, meaning that both sides have to trust Kickstarter to manage their money safely. If the product teams manage to have their projects successfully funded, they expect Kickstarter to give them their money; on the other hand, supporters want their money to go to the project when it is funded, or get a refund when it hasn’t reached its goals.

Essentially, both sides have to trust Kickstarter if they want to succeed. This opens up each of them to counterparty risk. Smart contracts provide a similar system to facilitate this exchange without third-party risk. Returning to the real estate example above, if a seller wishes to advertise their property, we can program a smart contract to facilitate the transaction online. The smart contract is programmed with the seller’s price and other criteria, and only upon the meeting of those criteria can their property be sold. So why should we trust a smart contract? Because smart contracts are located on a blockchain, they are immutable and distributed. Once a smart contract is created, it can never be changed again; and being distributed means that the output of your contract is validated by everyone on the network. If a bad actor decides to tamper with the contract, everyone else on the network is a witness and can invalidate them.

So, seeing as any real estate transaction requires so much paperwork in the form of deeds, contracts, tax records, and other documents required for making the sale, smart contracts could facilitate these transactions more securely and faster. Furthermore, smart contracts could take care of any ongoing real estate transactions such as rental agreements and home warranties, simplifying the process even more.

Another exciting idea within real estate smart contracts is the ability to fractionally own properties. As the owner of an apartment building, you can program the smart contract that facilitated its sale to invite investors to purchase shares within the building. These new owners now own a share of the property which they can sell at any time, through the same smart contract.

Traditionally, real estate has been concerned with listings, to connect buyers and sellers. However, blockchain and smart contracts are introducing new ways to purchase real estate: real estate can now be tokenized, allowing the sale of properties to be handled like a stock sale on an exchange. Real estate has long been thought of as highly illiquid due to the time it takes for sales to be finalized. However, tokenizing properties opens up the market to more liquidity: properties (or fractions of properties) in the form of tokens can be readily traded on fiat exchanges, increasing their liquidity.

Buying and selling property is time-consuming, risky, complex, and expensive. Solutions on blockchain will save time and money by releasing the resources currently used for registration and settlement. With blockchain and smart contracts, there is hope that these drawbacks will be mitigated.