
14 Minutes
What is Tokenized Real Estate?
Tokenized real estate is a process that involves converting real estate assets or their cash flows into digital tokens stored on a blockchain. These tokens represent fractional ownership of the underlying property and can be traded or transferred easily. The concept leverages blockchain technology to enhance liquidity, transparency, and accessibility in real estate investments.
These tokens can be either non-fungible tokens (NFTs) or fungible tokens, depending on the nature of the asset and the investment structure.
Key Features:
- Fractional Ownership: Investors can own a fraction of a property, making real estate investment more accessible.
- Increased Liquidity: Tokens can be traded on secondary markets, providing more liquidity compared to traditional real estate investments.
- Transparency and Security: Blockchain technology ensures transparent and secure transactions.
- Smart Contracts: Automate various processes such as rent collection, property management, and compliance with regulations.
