Much has been said about the technological advancement and security brought by the blockchain.
Ethereum co-creator Vitalik Buterin tweeted unsatisfactory comments about the direction the industry is taking:
“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores,” he wrote.
“The former is better for pumping price,” he continued, “but the latter is much better for actual adoption.”
Tokenization of real estate
Real estate tokenization is the process of creating digital assets (or tokens) materializing the actions of a company carrying one or more property(ies).
This allows you to exchange your assets in real time and without territorial constraints.
Why should I choose Real Estate Tokens?
To hold a token is therefore to hold a share of Real Estate, it is also to hold income backed by assets.
On the blockchain, this income is materialized in a cryptocurrency, called DAI (means “lend” or “provide capital for a loan” in Chinese).
This cryptocurrency has the advantage of being backed by the United States Dollar and therefore avoiding any volatility when obtaining your dividends.
The administrator of the property on which you have invested will be responsible for collecting the rents and transferring them (in DAI) to the blockchain every month.
On the latter and without human intervention, smart contracts are responsible for distributing dividends respectively (represented by DAI) to each holder of real estate tokens.
Spend your income in the real world
Your DAI will be sent to your ETH wallet monthly. You can choose to opt for the Coinbase Card allowing you to convert your DAI automatically into € during your daily purchases
Why does blockchain need real estate?
A recent analysis by Alfablok has shown that MakerDAO needs a constant 70% increase in the amount of DAI in circulation each year in order to maintain its market capitalization around $ 350 Million at present.
According to Alfablok, this scenario seems difficult, but possible to hold. For this, Maker would have to open its guarantee system to solutions such as tokenized real estate, for example.
“There are over 170 trillion dollars of real estate in the world today, which should be enough”
How to start?
Platforms with tokenized and easily accessible assets are starting to flourish on the Internet.
You can get good profitability on the platform COCORICOS.IO