Tokenization and Real Estate

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Currently, we all know the world revolves around cryptocurrencies, and the forefront of evolving involves Bitcoin, Ethereum, and NFTs, etc. The future of the real estate business can be evolved to another height through NFTs (Non-fungible Tokens) and it’s quite possible.

For better understanding; tokenization simply means when sensitive data/numbers are turned into a string of characters that can have no meaning when accessed by external factors. The string of characters can be referred to as a token.

And this can be done in the Art world, Music Industries, and Real Estate business, simply by tokenizing their contract of ownership and this can only be done through smart contracts. Smart contracts run on blockchains and are stored on a public database that can be changed and it’s said to be in a form of computer code of an agreement between two people. Because it’s run on a blockchain it can be sent automatically to a third party.

Relationship between Tokenization and Real Estate

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Real Estate is said to an improved permanent land or properties either natural or man-made and it’s sold at a certain price.

The real estate business has been a major hit for real estate developers, putting the cost of land or house up to $30-$50 million. And as time goes, the value increases making it more difficult for the average man and making the owner richer.

Tokenizing real estate can only be possible if ownership can be divided into different portions, making it easier for anyone to purchase or acquire part of the business or a desired property. Then making everyone earn in percentage and get rich too, not just one-sided. The gains and losses can only be determined by the volatility of the price of the assets.

Tokenizing the real estate business will make it easier for people to acquire wealth and also invest in it because it’s also the fastest way of getting rich.

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