We’ve been hearing about tokenized real estate for a while, but a new platform will exemplify how property owners and tenants interact through the new digital blockchain frontier. Some of them are making headlines as businesses and governments ponder what the future of digital money will look like – and, for example, what it might mean for housing.
Gareth Jenkinson at Cointelegraph reports on a system called LaProp, where investors can buy tokenized shares of rental properties. The system, Jenkinson says, offers secure rental payouts and various types of automation for the kinds of processes that were traditionally handled by human landlords.
“LaProp will look to leverage Chainlink Keepers’ node operators’ track record in securing billions of dollars invested in DeFi markets,” Jenkinson writes. “The decentralized automation service carries out tasks for smart contracts on the BNB Chain and, in this instance, will automate secure rental payouts to token holders.”
Jenkinson also contrasts LaProp to another real estate tokenization platform called ‘Lofty AI.’
“As Cointelegraph previously explored, Lofty AI gives users the ability to invest in listed properties and gain shared ownership,” Jenkinson writes. “This provides access to governance decisions and a share of rental income — much like LaProp intends to provide.”
Beyond logistics, these sorts of systems have obvious appeal to investors.
“One obvious advantage of crypto real estate assets is the ease-of-use,” writes Marvin Allen at his crypto blog. “Buying or selling a crypto token (and thus a stake in a property LLC) does not require and contracts, lawyers, or regulators. It’s as simple as purchasing the token. There are also no complications when receiving rent distributions from your crypto real estate investment since the returns are transferred directly to your wallet.”
Certainly, there is a critical mass of interest in tokenized real estate right now. Look for these kinds of real estate blockchain use cases to proliferate, and think about how this could boost your own crypto investment strategy.