Blockchain tokenization for real estate appears to be taking the next generation shape thanks to the innovative Funder One-Capital. Gone are the days when the sector was flooded with stakeholders whose roles are unspecified. This invite only platform is set to bring together like minds players in the real estate industry and do away with middlemen.
Traditional real estate complexity is not something new, there are a myriad of bottlenecks and blockchain tokenization is set to bring sanity in the industry. The technology is immutable, transparent and decentralized. There are no weak points to allow for manipulation since all transactions are time stamped.
Funder One-Capital entry into the real estate sector is set to revolutionize how the industry operates. The platform rides on the blockchain technology with only three entities in play; the Owner, Collaborator and the project. This cuts off the middlemen who tend to slowdown the processes.
With Funder One-Capital, participating on the network is by invite only. As a new user in the platform, you create the three entities since this is the only way you start interacting and transaction on the ecosystem.
The first entity on the platform is the Owner. Here one starts a Project and draft the Project Compact. This sets out the guidelines on the creation, development and offering to the platform for distribution.
Collaborator entities work directly with the Compact developed by the Owner to ensure their usability, maintenance and development. This class of entity includes but not limited to architects, business partners, developers and designers.
The third components are the Projects that are bound by a common goal which are outlined in the actual Project Compact.
Tokenizing Real Estate Property
Tokenization of real estate property brings two sectors together; the analogue and digital. The Funder One-Capital goal is to act as a bridge between the two worlds. According to the firm’s white paper:
“In our goal in bridging the best of both worlds—physical and digital—we have determined that utilizing digital bearer certificates in the form of crypto-asset tokens provides the cryptographic certainty and scarcity that can be the pillars of a sustainable digital economy”.
Simply put, tokenizing real estate, one needs to create a security token which presents the property in question shares. The total token value is equivalent to the value of the specific asset. Think of it as allocating a certain amount of token per square feet of the property.
Distribution and Route to Market (RTM)
To gain adequate visibility on the market, distribution is key. The team behind the has various options. One, the floating of the digital assets at consumer price; once a transaction occurs, a new token is “minted” and starts to circulating in the network. These newly created coins can be put into use as leases, rent or actual shares. These can later be sold or traded in the open marketplace depending on what the owner decides.
Another distribution method and route to market is “rail distribution” and this is possible by creating real scarcity of the assets.
The other method presents a wide variety of options and is made possibly only with scarce digital assets: rail distribution. To achieve a meaningful visibility, this method works well when implemented in the form of “airdrops to other platforms riding on blockchain technology.