11/28/2024
Big things are coming for otherhome! Stay tuned! 🚀
"Tokenization has been around almost as early as blockchain appeared, and it has been looking up to a bright future from day one. Estimations by McKinsey show that the volume of tokenized digital securities will reach $5 trillion by 2030.
Real estate tokenization seems like it will significantly contribute to this growth. The market size for real estate tokenization was $2.7 billion in 2022, and its growth trajectory indicates that it could reach $16 trillion by 2030 according to a report by the Boston Consulting Group.
Advantages
This method results in increased liquidity and decreased barriers to entry to the real estate market. Because the capital threshold is lower, the property is liquidized much faster while smaller investors enter the field.
Moreover, smart contracts handle the whole process of tokenizing and selling on-chain, leading to transparency, automation, and security. The role of costly intermediaries like agents, banks, and legal representatives are handled by smart contracts. A smart contract can automatically sell a token as soon as the conditions are met, which is much faster, cheaper, and error-free than a human intermediary.
Finally, the added benefit of blockchain technology appears in real estate tokenization as well: Security and transparency. All the sale and ownership processes take place and are recorded on-chain. This data is accessible to anyone and is almost impossible to tamper with. Therefore, all transactions remain trustworthy.
The benefits of real estate tokenization are amplified when the method is applied on a larger scale, where handling property is a part of everyday life." -
