Much has been said about the technological advancement and security provided by blockchain.
Ethereum co-creator Vitalik Buterin recently tweeted unsatisfactory remarks about where the industry is heading:
“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. The former is better for pumping price, but the latter is much better for actual adoption.”
The tokenization of real estate
Real estate tokenization is the process of creating digital assets (or tokens) materializing the shares of a company carrying one or more real estate (s).
This allows you to exchange assets in real time and without territorial constraints.
Why choose real estate tokens?
To own a token is therefore to own a share of real estate, it is also to hold the income backed by the assets.
On the blockchain, this income is materialized in a cryptocurrency, called the DAI (lend or provide capital for a loan, in Chinese language).
This cryptocurrency has the advantage of being backed by the US Dollar and therefore avoids any volatility when obtaining your dividends.
The administrator of the property in which you have invested will be tasked with 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 (represented by DAI) respectively to each holder of real estate tokens.
Spend your income in the real world
Your DAI will be sent to your ETH wallet every month.
You can choose to opt for the Coinbase Card, which allows you to automatically convert your DAI into € during your daily purchases.
Why does blockchain need real estate?
Applications like Maker, Compound, Uniswap, Augur, or 0x all need money to run.
A recent analysis conducted by Alfablok demonstrated that MakerDAO needs a constant 70% increase in the amount of DAI in circulation each year in order to keep its market capitalization at around $ 350 Million today.
Still according to Alfablok, this scenario seems difficult, but possible to hold. To do this, Maker would have to open up its guarantee system to solutions like tokenized real estate, for example.
“There are over $ 170 trillion in real estate in the world today, which should be enough”
Where to start
Platforms with tokenized and easily accessible assets are starting to flourish on the Internet.
You can get a good profitability on the VAVE.IO platform