Insights of Real Estate tokenization — Purpose, benefits and development checklist:!

What is real estate tokenization? What is its purpose?

When it comes to business, every industry will go through a disruption phase. In recent years, the real estate industry is going through one such phase. The main reason for this is, the long process and time it takes for planning, management, and delivery. In addition, the lack of security with increased involvement from third parties like brokers, etc is an issue. This is why the concept of real estate tokenization has gained traction and is widely trending among audiences. It is a digital asset that represents a single share in properties that are securitized and divided into shares for sale. These tokens are secured on the blockchain.

Real Estate tokenization involves several benefits when compared to traditional real estate methods. Let’s take a look at some of the important ones.

Key Benefits of real estate tokenization:

• Increased Liquidity:

Illiquidity is one of the primary reasons causing a downfall in the real estate industry. Real estate tokenization breaks this by providing increased liquidity, enabling easy and quick buying/selling processes, in addition to facilitating the reselling of properties.

• Enhanced Security:

As the tokenization platform is built with blockchain technology, the information of the owner and the property is completely secured, avoiding any risk factors/fraudulence.

• Elimination of third parties:

Tokenization enables peer to peer exchange process, thereby eliminating the involvement of any third parties such as brokers, agents, etc.

• Low Costs:

As there is no involvement of third parties with tokenization, there are no transaction fees involved, and therefore the cost is less when compared to a traditional method.

• Immutability:

Tokenization is encrypted with blockchain technology. Once the information is documented on the blockchain, it cannot be changed and therefore, it offers immutability to the owners. They can also view the history of transactions happening on their platform.

• Globalization:

Tokenizing of real estate properties provide global exchange access to the customers and offers fractional ownership enabling an efficient and quicker process.

The above-mentioned points are all the important benefits involved with real estate tokenization. Now, if you want to try your hand with real estate tokenization, it is vital to choose the right platform to survive present demand and competition — to sustain in the market. To determine the right platform, there are some essential aspects you need to look at, such as

• Legal Compliance:

You have to make sure your platform has all the necessary legal requirements acquired before developing your tokens to ensure smooth business and to avoid any confusion in the long run.

• Globalized KYC integration:

The platform should be built-in with KYC integration that enables an exchange process globally, i.e. customers from different parts of the world can buy and sell properties.

• Multi-ledger asset:

The platform should enable the owner to store and manage multi ledger assets.

• Blockchain and smart contracts integration:

It is essential to have reliable and advanced blockchain and smart contract integration for your tokens to ensure maximum security and smooth exchange business.

• Automated reporting:

There should be an automated reporting option within the platform where the owner gets to know whatever is happening with regard to the transactions.

• Decentralization:

The platform should be completely decentralized, thus providing the owner, full access to decision making regarding the business.

These are all of the fundamental aspects that need to be looked into, in a reliable real estate tokenization platform. The best way to attain one is to conduct ample research and choose a well experienced and recognized real estate tokenization development company like Blockchain App Factory. They have a team of some of the most dedicated developers who will provide a reliable Tokenized real estate platform with advanced blockchain security and necessary features along with personalized customization matching your preferences. The best part is, their services are real quick and cost-effective! So reach out to them, build your real estate tokenization platform, and become a part of recreating the real estate world!