Enabling Real Estate Fractionalization Transaction through Blockchain Technology

Enabling Real Estate Fractionalization Transaction through Blockchain Technology
29/05/2018 , by , in ALLIED

People and organizations are trying to incorporate blockchain technology in different industries. Among these is the housing market, where the nascent innovation aims to increase transaction time and transparency and protect an investor’s assets in a more secure space.

One of the problems of introducing blockchain to the real estate market is that not a lot of people understand the technology behind it. People are disseminating blockchain information through blog posts, conferences, and marketing campaigns to help people wrap their head around the concept for other’s better understanding. It is observed that people are ready to invest relatively small payments in a certain property which eliminates the need to obtain a large sum of money just to be able to get your foot through the door of the industry where huge investment requirements and “lock-up periods” are hindering the poor and middle-class from entering.

There are many pitfalls in blockchain technology and one such pitfall is the trading volatility of blockchain and the lack of regulation for it. Another disadvantage is that while the fractionalization might bring down real estate cost, it might accelerate neighborhood gentrification.

Collective effort will strengthen the bond and trust in investing through blockchain technology. However, it could take years before adaptation spreads across the nation.

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