Bitcoin has received huge attention from its surge way back in 2017 up to now. It had also been used for a lot of things but, mainly, Bitcoin–a product relying on blockchain–had been used as virtual currency. Blockchain Land explored how bitcoin had become indispensable in digital transactions and what its role could be as the digital marketplace for real estate continues to emerge.
Tokenization of property had given rise to the usage of blockchain in real estate transactions for added liquidity as well as the lowering of transaction costs. Asset tokenization is still in its earlier stages, but it had become relevant in real estate markets.
The significance of this is in the sheer size of the sector as an asset in terms of global asset value.
A market report on the effectiveness of blockchain revealed the size of the professionally managed investment market. What happened was that this market grew from $7.4 trillion in 2016 to $8.5 trillion in 2017. The prediction for 2025 is that the global real estate market will be worth $4,264 billion.
Coin Telegraph also reported an effort to keep tabs on blockchain and anything that goes with it–in this case, artificial intelligence (AI) and the Internet of Things (IOT).
A study had been headed by Dr. Tim Weingarner, a professor at Lucerne University of Applied Sciences & Arts – School for Information Technology. The subjects that they observed are the previously mentioned sectors.
The document revealed the importance of tokens in different transactions. Included in these transactions are the Ehtereum (ETH) blockchain as well as how different sectors have become reliant on tokens–including the real estate sector.
The platform preferred bitcoin because of how it makes the closing of deals and sale of assets easier.
The report concluded in favor of the IoT and blockchain, saying that a combination of both would allow better management of the supply chain and, in turn, increase trust that enabled it to grow in lieu with the sharing economy. Combine AI into the mix, and information would undergo a ‘democracy’ where all data would become transparent.
Tokenization is a part of the progress of real estate, and in a few years, transactions would be unimaginable without the use of tokens and without being done on the blockchain platform. Real estate will forever be disrupted thanks to blockchain, a transparent, secure form of doing transactions with money involved.