The future of blockchain and real estate tokenization
Have you ever taken a trip down a technology rabbit hole and wonder if you would ever come out? As a real estate developer, you have a fiduciary responsibility to find ways to enhance the overall returns for your investors. Yes, we look to find ways to enhance our property revenues, but we also search for countless ways to reduce our expenses, become more efficient and enhance our net operating income. During the past year, our leadership team has been writing about and investigating the future of blockchain technology, and how it has the potential to impact efficiency, due diligence, go-to market strategy, overall liquidity and profitability for our investors.
While the world has gone largely digital, certain financial markets remain archaic for managing, buying, and selling assets. This is especially true in the real estate marketplace that continues to use manual and time-consuming methods for acquiring, administering, and trading assets. As such a result, the real estate sector is very illiquid and inaccessible to most of society. Yes, this represents an inefficient market, but this manually intensive infrastructure also provides for a “technology intervention.” In short, by using blockchain technology and issuing real estate assets on a distributed ledger (also commonly known as tokenization)…
