Tag: PropTech

Blockchain Use Case – Real Estate

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

Real estate is always an interesting investment, especially if you don’t want to be exposed to the risk and volatility of the stock exchanges. Many properties can currently only be obtained with loans and high collateral. In addition, the high administrative effort and costs incurred by the authorities ensure that small investors in particular cannot get through to buying a property. If you buy a property together with other investors, you also have costs for the company that owns the property.

Lower government costs

Real estate investments for everyone

The blockchain helps with two important core aspects. On the one hand, this splits an asset such as a property into many small parts that you can invest in without an immediate middleman. The second aspect is the liquid market, which the blockchain makes visible. Going to a real estate agent is the current way to get real estate, or to sell real estate. A decentralized network, which digitally manages all shares in real estate, can use digital portals and smart contracts to help make a not always liquid market visible and, by simplifying the buying and selling modalities, more liquid. The gatekeeper function of real estate agents is no longer required, as market participants are made visible to all investors and owners of real estate.

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.