What is Blockchain Technology?
Blockchain technology, particularly when applied to real estate, offers a transformative approach by introducing the concept of real estate tokens. Here’s a breakdown of how it works and the implications for the real estate market:
Blockchain Basics
Blockchain is a distributed ledger technology that records transactions in a secure, transparent, and immutable manner. Each block in the blockchain contains a number of transactions, and once a block is completed, it is added to the chain in a linear, chronological order. This technology is decentralized, meaning it does not rely on a central point of control.
Tokenization of Real Estate Assets
Tokenization in real estate involves converting the ownership of a property into digital tokens on a blockchain. These tokens represent a share of ownership in the real estate asset, similar to how stocks represent ownership in a corporation. Each token is a digital asset on the blockchain and can be bought, sold, or traded.