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What are blockchain and tokens, which the real estate market has been using to attract investors?

The real estate market is one of the fastest growing, even in times of crisis. And with the growing demand for buying and selling assets, the sector seeks to modernize with the new technologies available on the market.

Among them we can mention tokens and blockchain, which occupy a prominent place in the world of cryptocurrencies, but they are not only used for cryptos: they also occupy a prominent place in innovations in the real estate market. Learn a little more about these tools and understand why real estate agents are making use of them!

What this article covers:

What is the real estate market and how does it work?

The real estate market is located in the secondary sector of the economy (industry) and operates in the production, purchase and sale of real estate assets (land, houses, apartments, public works, construction materials, speculation, etc.).

Real estate agents act as intermediaries in the purchase and sale of real estate, thus offering services to those who want to own a new house, land for speculation, or even sell their real estate. In this sense, the sector relies heavily on the legal aspect, as it deals directly with contracts and lawsuits within the scope of its operations.

What are blockchains and how can they favor the real estate market?

As previously mentioned, the operation of companies in the real estate sector deals heavily with the signing of contracts and financial operations of high amounts, since real estate is expensive. All this requires something called “legal security”, which is the guarantee that the rights of the parties provided for by legislation and the constitution will be satisfied, without illegality or injustice to any of the parties.

As today we deal with things in an increasingly virtualized way, and also due to the increasing demand for efficiency and security, solutions are created to guarantee aspects of security, efficiency and practicality.

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One of these solutions is the “blockchain”, which became popular due to the success of cryptocurrencies. The blockchain, from English, chain of blocks, is a system of encrypted data, stored in blocks, in which each block has its record, which is validated by the system itself. Every transaction recorded in the system must be validated and added to the blockchain. There are machines that take care of carrying out the necessary operations for validating the new data to be registered in the blockchain.

The people who carry out these operations are called “miners”. The great advantage of blockchain is the security, transparency and efficiency of the technology, since everyone can access it to consult transactions. This enables a multitude of solutions, such as smart contracts, ease of financing a property and cutting costs with notaries and paperwork.

O token is a virtual asset (good) that represents another asset, whether virtual or real, which has its transactions governed by the blockchain system. It is used to capitalize an undertaking, thus offering investors the possibility of acquiring advantages with their tokens. For example, a 2 million property can become 20,000 tokens of R$100. Thus, that real asset (the property) will have its value divided and traded in the form of tokens.

The investor can take advantage of the appreciation of their tokens and sell them for a higher value, or even buy an apartment in that development, promoting savings, as the property has appreciated. As the blockchain system is much more practical and democratic, this facilitates access to investment in tokens, benefiting both investors and the real estate company that will have the necessary capital to carry out the work. However, the aforementioned was just an example of the possibilities of tokenization in the real estate market. There are other modalities.

The investor can, for example, use his tokens to use a service on the platform that made them available, or even obtain decision rights in his company, or in his condominium. Tokenization is gaining more and more space, and more companies are adopting the token as a way to attract investors and capitalize on their ventures.

In short, blockchain and the use of tokens have untapped potential that promises to grow exponentially in the coming years. The digital age will also revolutionize the way of doing business and investing, bringing greater profitability for those who wish to acquire assets and greater profit for companies in the real estate sector.

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