It was only a matter of time before blockchain technology would also be applied in the real estate sector. Blockchain has, partly due to the rise of cryptocurrency and tokens After all, the traditional financial markets and the banking system were greatly affected. It was therefore soon clear that the question was not or the blockchain technology would be applied to real estate but when this would happen. In the meantime, several blockchain-based real estate companies have emerged and it is becoming clear how blockchain for real estate is a turning point in this sector.
Why investing in commercial property the traditional way is not for everyone
Everyone agrees that commercial property plays a major role in the world economy. There are many billions of dollars in annual turnover in this sector and the corona pandemic seems to have no effect whatsoever on this industry. Because of this, it seems that this sector is doing quite well (to put it in the most modest way) but to outsiders this picture looks better than it really is. The volatility of the market is seen by many as a major stumbling block. Because of this, it is investing in real estate often only reserved for the upper class.
For the middle class, the option of investing in commercial property was far out of reach. The main reason for this was that they simply could not afford the financial risks involved. In addition, many other factors played a role in why the real estate sector remained out of reach for many people. These included seemingly simple matters such as meeting liquidity requirements, obtaining financing and having the appropriate fund managers at one's disposal.
The attentive reader will notice that we have written this last paragraph in the past tense. This is a deliberate choice that you will fully understand when you have discovered the offer of Immotokens. After all, at Immotokens you can buy from as little as one invest a minimum amount of €50 in real estate without any liquidity requirements. Obtaining financing is therefore not an issue!
The influence of blockchain technology on the real estate market
The influence of blockchain technology on the real estate market is huge. This modern application makes the pain points of the traditional real estate market extremely visible because it offers an interesting alternative. Blockchain technology makes it clear that the traditional form of the property market is becoming outdated. After all, the most important influence of blockchain technology on the property market relates to accessibility, and that is exactly where the main need lies. Making the real estate market more accessible with the help of blockchain technology is realised in various ways. A look at the characteristic features of this technology makes this clear.
How does blockchain technology work?
Blockchain technology has a number of characteristic features that are diametrically opposed to those of traditional sectors. This is not only the case when a comparison is made with the financial sector, but certainly also with the real estate sector. The underlying idea of blockchain technology can be described with the term "Don't trust, verify". This can be translated as "don't trust, verify". The literal translation of the term "blockchain" is a "chain of blocks". This immediately creates a good visualisation of a blockchain structure. This structure consists of an imaginary chain formed by blocks of information that follow one another.
Blockchain technology can be seen as a large digital database that is not managed by a single party (as is the case with traditional banks) but by the large number of computers connected to it. These connected computers check every transaction that takes place. This creates a long chain of immutable and unbreakable information, which is also encrypted using a complex mathematical procedure. This makes it virtually impossible to commit fraud with the data.
Why blockchain is a turning point in the real estate sector
From the above, it is already quite clear why and how blockchain is bringing about a turning point in the real estate sector. The use of blockchain technology is not only a very secure method but also makes the use of a third party (such as a bank or a government) completely unnecessary! It is precisely these intermediaries who are often responsible for the complicated structure of the financial and real estate sectors and who ensure that the costs that have to be paid in this sector are very high. Since in the financial sector alone the number of intermediaries is overwhelming, the total budget required increases significantly. Of course, the real estate sector indirectly experiences the negative consequences of this as well. By using blockchain technology, the number of intermediaries is significantly reduced, which is noticeable in the costs.
Another important point, as indicated, relates to transparency. There is no doubt that blockchain technology is capable of providing the transparency that the real estate sector needs so badly. After all, it is a sector that is highly susceptible to corruption. By using the transparent (blockchain) systems, this can largely come to an end. This point can be put into practice in a simple way. If real estate companies decide to use blockchain, customers can see exactly where their invested money is going. In addition, there will be no data silos, as a single source will be created where interested parties can access all the information they need regarding the investment in a real estate project.
The information that Immotokens shares is fully in line with the above. We draw up an extensive information memo so that you have all the information at your disposal as a real estate investor. This note contains not only all the information about the property in question, but also about the general and legal conditions. Under the heading "documentation" you will find a monthly update on your investment. Naturally, you will receive the important and personal information by e-mail.
Accessible real estate as a step into the future
The accessible character of the real estate sector as a result of the use of blockchain technology can be seen as an important step into the future. After all, this decentralised technique provides important values such as efficiency and accessibility. These are precisely the values that are of great importance to interested parties. Thanks to Immotokens For example, you can be a property owner within minutes and enjoy your first rental income next month. This is possible because we make use of the opportunities offered by blockchain technology. We have already taken the step into the future and removed the barriers that still exist when you look for your way through the traditional financial and real estate market.
Do you have any questions about our offer and/or are you interested in discussing the possibilities with us, without any obligation on your part? Then feel free to contact us.