Blockchain in Real Estate: You Can Now Buy Fraction of House
The Real Estate Asset Ledger (REAL) is hoping to use the disruptive power of Ethereum Blockchain in order to make real estate crowdfunding a new investment alternative.
The power of the Ethereum Blockchain continues to permeate traditional models of business and investment with Real Estate the latest target. Through crowdfunding and smart contracts, REAL believes that the inefficacy and illiquidity of this traditional institution of investment potential can be opened up.
The idea of investing in real estate used to involve forking out huge sums of money to buy property, in a person's locality, with the hopes that it earns a profit over running costs. However, crowdfunding, and even more recently, Blockchain technology, is disrupting this model.
Buy a fraction of a house
There is a lot of promise that comes with investing in property. Rent, as well as the appreciation of property, are consistent and reliable streams of revenue and return, however, breaking into the property market is not a game for all.
Recent ideas, such as crowdfunding have simplified many aspects of traditional investments and business, but they still have their problems. Crowdfunding involves the coming together of multiple parties, in an agreement of trust, to effect an outcome that usually has to be regulated by a third-party.
In the case of real estate crowdfunding, middlemen have to be employed to sustain an agreement between multiple parties so that the proper dividends are received a