The Blockchain technology is reshaping how we not only view real world assets, but also how we interact and invest in it, By tokenizing these assets on the blockchain, democratising them and making them available for investors.
Traditional Real estate investment typically involves one or a small circle of people coming together to invest in a property within an environment. Blockchain Technology provides a space for fractional ownership, a system that splits ownership among many investors and stores their tokenised shares on the Blockchain.
Tokens on the Blockchain stand for the Investor’s shares in the property, with each token matching the worth of their assets. This process allows a property to be split to as many fractions as possible and to several investors despite the size of their portfolio.
But first, what are Real World Assets let alone democratising it?
As explained by coinbase, they are tangible assets that exist outside the digital realm. These can range from bonds to real estate properties, commodities, and machinery. The concept of RWAs in the blockchain context is about digital tokens that represent these physical and traditional financial assets. This includes currencies, commodities, equities, and bonds.
These properties offchain or Onchain are not accessible to anyone and everyone, but with certain technologies, democratising them become not just possible but accessible.
Democratisation of real estate investment entails making the industry accessible to the majority of people, and not an opportunity restricted to the elites in our society. Demonopool is creating a real estate environment where even $1 is being given a chance to grow through real estate.
How Web3 technology is Democratising Real Estate Investment
By leveraging the Blockchain technology, these platforms ensures that anyone, no matter their financial status can participate in real estate investment and activities. Providing a decentralised platform where you can invite in tokenized assets and properties with as little as $100, skipping the barriers of traditional real estate like huge capital, geographical limitations and complex legal processes amongst others.
This mission extends beyond accessibility — it entails transparency, security and liquidity in real estate investment which are easily adaptable on chain.
Real world assets are known as Illiquid assets. one that requires long processes, documentation and time to sell, buy or transfer ownership. All of these we can now do onchain. With fractional ownership, investors can buy, sell it and trade assets in a liquid, secure and transparent marketplace.
These platforms eliminate the need for middlemen, overall reducing the cost ensuring even and fair distribution of profits among investors. Using smart contracts to govern transactions and guarantee important information on the property and ownership rights are not only automated, but tamper- proof.
Platforms like these on Avalanche and Ethereum mostly ensures real estate Onchain is no longer an opportunity reserved for a few. Instead, we are having a borderless, inclusive and efficient system which redefines it.
An opportunity open to both the clueless newbie and professional investors.
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Democratizing Real Estate Investment Through Blockchain Technology. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.