Bitcoin Global News (BGN)
December 04, 2018 -- ADVFN Crypto NewsWire -- What’s the biggest
way that cryptocurrencies have affected the world so far? For many,
the answer would be decentralizing the ownership of money. With
this, however, comes an even further level of decentralization.
Now, anyone can invest in just about anything. The only thing
holding this trend back from becoming truly widespread are existing
regulations related to investment markets.
In real estate, this issue is no
different and yet, certain companies are finding ways to act within
the law and still make this goal of democratizing investment
markets a reality. Blocksquare belongs in the small, privileged
group that is doing this for a few key reasons.
First, they have a clear vision
that goes beyond the general idea of tokenizing real estate in some
sort of crypto hedge fund. "Real estate is the biggest asset class
in the world. At the same time, it’s also one of the most illiquid
investments one can make. Generally, investing in real estate is
hard to access, time-consuming and capital intensive. Tokenization
of assets like real estate is here to change this. " This quote
from Blocksquare’s CEO, Denis Petrovic, is where everything begins
for them. In essence, they aim to capitalize on this major
opportunity by changing the well-established foundations of real
estate investing.
More specifically, just as Paypal
and Stripe represent the top infrastructure providers for online
payments, so Blocksquare hopes to be for the future market of
tokenized real estate.
If there’s one problem with such an
idea, it is that it is almost too forward thinking.
We have just started to see
tokenized real estate become a reality. The first pilot of
Blocksquare’s infrastructure, which can be termed the Proptoken
ecosystem, involved an underground parking garage. While tokenizing
such a structure is no small feat, for such an infrastructure to
succeed, it will have to be widely accepted by commercial real
estate providers to truly take hold.
Secondly, related to this,
Blocksquare deliberately started with this relatively minimal pilot
to showcase the Minimum Viable Product version of its’ future
ecosystem. Therefore, theoretically, they could have chosen a
larger structure, but doing so may have compromised the efficiency
of their tech. In actuality, though, it does not really appear that
this is the case. What is more likely is that Blocksquare made this
chose to avoid the inevitable red tape that would come with using a
larger piece of property.
More recently, it appears that this
pilot and other experiences have helped the Blocksquare team to
solidify their vision into making real estate investing something
that anyone with an internet connection can do. The fact that they
already have a fairly clear roadmap related to this vision can only
serve to help them in their future efforts.
Even so, one factor remains
uncertain. Moving forward, the biggest challenge for Blocksquare
will most likely be attracting enough commercial real estate
companies to their platform, in order to truly shift real estate
investing in Blockchain-based markets.
On the other hand, perhaps they
will not end up needing to do this at all. Because of what the
Blockchain has already done for data ownership, it would be logical
to conclude that a truly democratized platform for investing in
real-estate would attract another group altogether. In a word,
what’s to stop individual owners from tokenizing their properties
in droves?
Without brokers and clearing
houses, the potential for profit for everyone is much higher. As
time goes on, expect us to keep you informed on which way the chips
fall for such a promising, early-stage firm.
By: BGN Editorial Staff