Blockchain And Its Ever-Increasing Effect On Real Estate Investment

Blockchain has been a technology that's been consistently and intensively explored in the past few months. An ever-increasing number of countries have begun to explore legal and functional frameworks meant to keep blockchain-recorded tokens regulated. This has led to more and more sectors becoming comfortable with the idea of implementing the crypto-technology into their processes, according to Coin Telegraph.

With this also comes an increasing reliance on distributed ledger technology (DLT), which has the power to disrupt things on a transactional level. The recent regulation also moves towards addressing added volatility and risk concerns to initial coin offerings (ICOs) and security token offerings (STOs).

Many groups have been seeking a standardized set of by-laws for STOs and ICOs, which will make things easier to understand for all concerned. However, this will also serve as the missing link-a piece that makes security and fraud concerns virtually a thing of the past for all ICOs, as well as other types of crpto-currency.

Yahoo! Finance reported on what could serve as an example. European investment manager Peakside Capital Advisors has launched a real estate fund for the German market using blockchain. The company came out with a press release last June verifying what they had done.

This funding controls assets between $17-$85 million, and is a fruit of the partnership of Brickblock. Brickblock serves as the mother company of ScalingFunds, a startup which managed to tokenize its first property this year, according to reports. It is also an investment management platform operating on its own blockchain.

The use of blockchain in Peakside Income Fund 1 targets recording fund shares, which will be stored offline with SANNE-a global provider that stores alternative asset records and corporate administration information.

The funding, explained by Brickblock CEO Jakob Drzazga, will also help in trading fund shares as well as create a new segment between open-end and closed-end funds. They plan on raising a total of $226.6 million in equity.

Perhaps, one of the biggest benefits blockchain has been able to add to real estate is the ability to create tokenized properties. These properties are under fractional real estate (FRE) opportunities, which also gives smaller investors the chance to invest in properties, like their major counterparts do. Data has also been cited as a major boon to real estate.

Regulations will still have to be drafted to control blockchain for safer use. But whatever the outcome, it will serve to be one of the earliest boosts to modern real estate.

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