Key Benefits

One of the key benefits of tokenization is something known as fractional ownership. In the real world, sometimes it is difficult or impossible for an asset to be broken down into smaller units, for example real estate. Tokenization allows for the creation of digital assets that can be divided into smaller units, making it easier for more people to invest in them. This is particularly useful for assets that are traditionally difficult to invest in, such as real estate or fine art, as it allows for more people to participate in the market. This is especially true for those with little cash flow.

Another benefit of tokenization is increased liquidity. Tokenized assets are often traded on blockchain platforms, which makes them more liquid, and easier to buy & sell. Tokenized assets can also be traded 24/7, which holds an advantage over markets that have specific opening and closing times.

Tokenized assets are recorded on a blockchain, which provides transparency as well as immutability for the ownership & transfer of assets. This allows for the trustless trading of assets. Moreover, all transactions are recorded on the blockchain and can be easily audited. This holds sway over traditional markets where records can be difficult to source, and can be more easily manipulated and doctored.

Tokenized assets can also be programmed with smart contracts, which can automate the process of buying, selling, as well as managing those assets. Smart contracts can be programmed to execute specific actions when certain conditions are met, reducing or eliminating the need for intermediaries and minimizing the risk of fraud.

Tokenized assets are also available to be traded worldwide, allowing people from all over the world to invest in them. This is a significant advantage over traditional markets that are often restricted to specific geographic regions.

Will You Tokenize?

Tokenization is a powerful tool that has the potential to democratize ownership and access to utility and assets. With the increasing interest and adoption of tokenization, we can expect to see more and more assets being tokenized in the coming years, and we can expect the real estate sector to be especially influenced by these emerging technological processes.