The power of the Ethereum Blockchain continues to permeate traditional models of business and investment with Real Estate the latest target. Through crowdfunding and smart contracts, REALbelieves that the inefficacy and illiquidity of this traditional institution of investment potential can be opened up.
The idea of investing in real estate used to involve forking out huge sums of money to buy property, in a person’s locality, with the hopes that it earns a profit over running costs. However, crowdfunding, and even more recently, Blockchain technology, is disrupting this model.
Buy a fraction of a house
There is a lot of promise that comes with investing in property. Rent, as well as the appreciation of property, are consistent and reliable streams of revenue and return, however, breaking into the property market is not a game for all.
Recent ideas, such as crowdfunding have simplified many aspects of traditional investments and business, but they still have their problems. Crowdfunding involves the coming together of multiple parties, in an agreement of trust, to effect an outcome that usually has to be regulated by a third-party.
In the case of real estate crowdfunding, middlemen have to be employed to sustain an agreement between multiple parties so that the proper dividends are received and the benefits are equally and fairly distributed. Cross border investments also come with their own issues.
Breaking down the walls, with Ether
REAL’s belief is that their use of Blockchain, Ethereum smart contracts, and digital currencies, or their own tokens, can alleviate these problems. REAL tokens will be used to invest in properties on their crowdfunding platform.
While some of the traditional real estate investment issues are being solved through crowdfunding, a new world of cross border and trustless investment, can be opened with Blockchain technology.
Through REAL’s platform, tangible real estate can be invested in fractionally and with digital currencies. By using the Ethereum network, smart contracts do the work.
In an Ethereum environment, the need for regulatory bodies and middlemen would seem to fall away, and with them the fees and problems surrounding potential global investment. By investing on an Ethereum Blockchain REAL propose that rental dividends, agreements between investors, and other intricate aspects of property investment – on a crowdfunded level – will be executed fairly and transparently.
Full of liquid
Disrupting traditional markets also comes with ease of accessibility and REAL claim that because of the self-contained Blockchain system, and the lack of external parties governing the flow of assets and control of parties in the crowdfunded investment, there will be high liquidity in an usually illiquid game.
As with any cryptocurrency token the growth or decline of the value of REAL’s token can be profited off, as well as the dividends returned from the true investment. Their platform aims to allow digital, crowdfunding investors the chance to turn their tokens into Ethereum, or other digital currencies, with ease.