‘Lower tier’ exchanges exhibit high trading volume
Do you want to win a €1,000 property investment whilst trading crypto? – Trade MPG on Stex & Probit
Japan’s Third Largest Bank Completes Blockchain Trade Finance Test
4 Cryptocurrency Projects That Successfully Changed Chains
Economic Inequality Triggers Chaos and Violence in Chile: Multiple Deaths, Trains Torched, Banks Closed, Buildings Burned
CFTC Chairman Optimistic on Launch of Ethereum Futures and other Crypto Derivatives
Banking Scandals, Money Printing and the Anti-Bribery Standard: A Strategic Approach in the Fight Against Corruption (ISO 37001)
Running Bitcoin Cash: An Introduction to Operating a Full Node
Sally Ho's Technical Analysis 22 October 2019
A look at exchange confirmation times and settlement assurances
Facebook Considering Stablecoin Alternatives to Ensure Libra Launch
Money 2.0 Stuff: The Facebook Start Up methodology
Coinbase, Poloniex and Other AA-Graded Crypto Exchanges Saw a 31% Plunge in Trading Volume in Sept – Report
How Would Bitcoin Fare in a ‘Growth Recession?’
Michael Terpin Urges FCC to Curb Crypto Fraud That Cost Him $24 Million
WATCH: UNICEF’s Crypto Fund Plans to Pay for Internet in Public Schools
Former Fed Nominee Stephen Moore Backs Fractional Reserve Stablecoin
Anti-Money Laundering Laws Apply to Crypto Too, Says FinCEN Chief
How to Safely Store Your Wallet Recovery Phrase
A deep dive into Circle: What’s the game plan now that Poloniex has been axed
CFTC Chair Says Ether Futures ‘Likely’ in 2020
WATCH: Ecash Creator David Chaum On His New ‘Quantum-Resistant’ Cryptocurrency, Praxxis
Will Bermuda Be the New Crypto Center of the World?
There Is Now Less Half a Bitcoin for Each Millionaire
CFTC Chairman: a commodity can become a security and vice versa
The Blockchain Effect on the Real Estate Industry
It seems that all one has to do these days to see something about blockchain technology is go online. Nearly every major news portal and tech website has had a number of features on the current darling technology. The code supporting Bitcoin, blockchain technology has been suggested as a solution in every industry from banking to dentistry.
However, while many have suggested blockchain can revolutionize every industry, some lend themselves more simply to disruption. For example, anything that can be transacted digitally allows for easy conversion into blockchain solutions.Tokenizing the World?
One such area for disruption is anything that can be tokenized. When an asset can be converted into tokens, those tokens then offer a veritable ‘stock market’ solution for transferring that asset to a larger owner base.
This tokenized model is made possible through platforms like CPI Tech and others, that use blockchain to issue ‘tokens’ of a particular asset. The technology is very similar to Bitcoin, in that the tokens are issued on the blockchain and are immutable. Such tokens can then be sold, held digitally, or transferred interpersonally without change to the value of each token.
However, unlike Bitcoin, the underlying basis for the value of each token is based on the overall value of the tokenized asset. Each token then functions as a sort of ‘stock’, with value being given to the owner, and dividends made possible by token value increase. Such a solution is possible for anything that can be classified as an asset with a value that can be easily divided.Divided House
One such example is found in the world of real estate. A house is, of course, a real asset, that can be transferred physically only. However, the occupancy of a house or a rental property is based on time – this allows it to be tokenized.
Consider, for example, the potential for tokenization of a rental property’s use. Because the property is simply being rented, the time of rent can be distributed via a tokenization system, allowing the landlord to sell ‘shares’ of rental income.
While the landlord would retain the title to the property, the income from the property could be distributed over a wide investor base. Such a system would allow for a B2B platform, encouraging investors to participate in the profitability of a particular asset.
As the value of the rental income of the property for a year increased, the landlord could simply increase the value of each token. Owners would then be participating in the returns that the rental income made without the massive upfront investment cost, or the necessity of maintenance – a major hurdle for many would-be investors.
What’s more, the landlord would also be a huge winner in such a solution. While he would be giving up some of the value of the rental income for the year, the token would be sold to potential investors. In this way, the landlord could rapidly recoup some of the initial investment cost in purchasing or financing the property.
Additionally, the landlord could keep some of the tokens at the beginning offering, effectively tying up the value of the rent for a portion of the year. This is exactly what Satoshi Nakamoto did with the first 1 million Bitcoins ever created (which, by the way, puts the elusive founder on the Forbes richest 100 list!).Tokenization Tech
The hiccup, of course, is the technological know-how of creating such a system. However, with platforms like CPI Tech, this process of tokenization and the technology that makes it possible are already in place.
Landlords and asset holders would simply need to utilize the blockchain feature that CPI offers. This would allow them to generate a cryptocurrency token that could then be marketed and sold. And, to make matters easier, CPI also provides training and resources for getting the word out about the token that is being offered.
Taken together, these systems allow for a new, disrupting technological change in the marketplace. With tokenization abilities, landlords and businesses can change the way investors buy into real estate value, and allow for the proliferation of real estate investments.