
Fractionalized Real Estate Tokens and Investing With Bankex
January 17, 2019Dividends, voting rights, and interest are programmed as a part of the security token itself. The programmability can even be extended to KYC procedures, governance, and compliance.
According to Bankex, “Real estate tokenization will free investors from the two major hurdles that investors face. One is the long-term commitment and another being the higher barriers to enter the investment in the form of minimums.”
The open source proof-of-asset-protocol from Bankex facilitates digitalization and tokenization of traditional assets, which further eases up the exchange of the traditional assets.
According to Prof McKeon from Bankex, “Real estate-focused token exchanges increase liquidity. If the token is trading, the market value of the building will be pretty apparent, and the real estate appraisers will be functioning as equity analysts.”
Any real estate token whether from Leaseum Partners or from any other security token provider is the crypto-equivalent of the asset type. The condition of the property will be determined by a variety of things in a way to reflect the true price of the property. The internet of things that determine the value is reflected in the form of the price of the security token.
Since the entire process is backed by blockchain technology, the whole process is transparent, efficient and more efficient. The trading process on the tokens typically starts the sooner the asset is checked using PoAP.
The flexibility provided by Proof of Asset Protocol makes the real estate investment very secure and makes it worth capital attraction. With the coming of blockchain technology, the real estate market is more like a conventional equity market. The internet of things makes the monitoring very easy, and the transparency makes the process pretty appealing. A lot of trust in the investment is created by the transparency in the process.
The real estate token can achieve the maximum potential of $ 237, and that is absolutely achievable in the crypto economy. The mechanism of tokenization is also kept clear. Thereby building a strong case for investors to be able to adopt the blockchain technology.
Transaction cost and transaction speed was a challenge years ago when coffee shops permitted payment using cryptocurrencies. Bankex Plasma is solving both of these problems by virtue of its first use case that processes payments like VISA transactions speed. Of note, VISA is the most used credit system in the world.
So, coffee enthusiasts will have to download the app, scan the QR code on the machine and confirm the purchase with crypto. While buying coffee was considered to be a very ordinary transaction with Ethereum the transaction time was critical. There are still a few issues that the Plasma Protocol should be better at.