Real Estate is one of the best performing assets in the world especially during inflation (until it leads to recession). Chris Powers, the CEO of Fort Capital predicts that this decade will see a technological shift in the space. He foresees tokenization or securitization of real assets using Blockchain. Power’s tweeted,
Owners that create digital assets (more transparency) to accompany their physical assets will not only become smarter but will have more valuable properties.
Not only in the buying and selling of properties, but also rent agreements, maintenance requests and other records related to the property will be run on Blockchain. He notes,
Blockchain-based property management software will be used to record day by day property records (i.e. when a tenant puts in a maintenance request, how the property manager handled the request, when the work was completed, the receipt, etc.), creating a digital asset that will
Powers also notes that the technological shift will open up possibilities of larger public investment in real-estate. The security and immutability of Blockchain will diminish the need for ‘title’ insurance. He noted,
Title companies will fight to stay alive as blockchain replaces the need for ‘title’ insurance.
Any real estate asset can “go public” as tokenization takes effect. It will create permanent capital opportunities for assets.
This opens up a lot of opportunities for start-ups and smart contracts platforms like Ethereum, EOS and Tron to offer their services. However, there are even private institutions and DLT platforms like Hyperlegder and R3’s Corda that offer similar functionality.
The Chinese Government have been working on their independent Blockchain infrastructure. Even large private firms like Alibaba, Walmart, Maersk have patented their own Blockchain-based models to develop their data management system.
Nevertheless, the increasing viability of Blockchain and tokenized asset, does paint a bright picture for the crypto markets at large. The total market market capitalization of real estate market is more than $8.5 trillion.
How do you think his vision will affect the crypto markets? Please share your views with us.