Real estate’s much-anticipated affair with blockchain technology seems to be becoming a reality.
Just as investors in real estate investment trusts can buy shares that represent an ownership stake in a piece of large trophy assets, a digital security token offering functions much the same way. The difference for tokens is that distributed ledger technology is used to record the transaction, and any subsequent transactions on a blockchain.
Blockchain is a public distributed ledger system, which means that, unlike with centralized ledgers often maintained by one entity, multiple copies exist and each participant within the system retains their own copy of a blockchain that updates as new transactions occur.
By using blockchain technology, low-cost peer-to-peer transactions can be made between anyone, anywhere in the world, circumventing established banking systems. Though exchanges running off blockchain are best known as trading hubs for cryptocurrencies, which arguably brought the technology into the mainstream after last December’s bull run, a vanguard of real estate owners and investors are now diving in.
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Source: The Real Deal New York