Through tokenization and Blockchain, Ellamediate, a PropTech company, has now facilitated the ease of “Fractional Ownership” and “Co-Ownership” of real estate assets. Here’s everything you need to know about blockchain, tokenization, and how it applies to real estate.
What is Tokenization?
Tokenization is the process of transforming ownerships and rights of particular assets into a digital form. By tokenization, you can transform indivisible assets into digital token forms.
How Does Tokenization Work on the Blockchain?
A token, in general, is a representation of a specific asset or utility. Tokenization, in the context of blockchain technology, is the process of blockchain application. They can represent tangible assets such as gold, real estate, and art, as well as intangible assets such as voting rights, ownership rights, and content licensing. Almost anything can be tokenized if it is considered an asset that can be owned, has value to someone, and can be incorporated into a larger asset market.
On the blockchain, there are four main categories of tokens which can vary depending on the characteristics of a specific token or the platform on which it is tokenized.
- Security tokens: Security tokens represent a specific investment, such as a company share, a voting right in a company or other centralized organization, or some tangible or digital thing of value.
- Tokenized securities: It is essential to distinguish between security tokens and “tokenized securities.” While the terms are often used interchangeably, a tokenized security is a simple digital stand-in for the underlying security that is primarily created to be easily exchanged, aggregated, or used.
- Utility tokens: Utility tokens represent access to a specific product or service, typically on a blockchain network. Utility tokens can be used to power the trust model of a blockchain network, to run a peer – to – peer market, to pay transaction fees, or to grant holders the right to submit and vote on new developments within a decentralized autonomous organization (DAO) or other unified network.
- Currency tokens: Currency tokens are designed to be traded and spent. Their value is directly linked to their distribution mechanism and underlying blockchain network.
NB: Tokens designed for specific purposes can be used in a variety of ways by users. The development team can customize the token to meet their specific needs. Because of this flexibility, it is noteworthy to mention that token value exchange does not have to occur through the trade of cryptocurrencies but can emerge through the exchange of fiat currencies based on a predefined medium of exchange.
What You Need to Know About Ellamediate
- Ellamediate has adopted Blockchain tech to tokenize real estate assets and offer them to a large spectrum of the Nigerian populace, in the first instance.
- They leverage Blockchain technology to create a democratic real estate marketplace for discerning buyers seeking to own a diverse real estate portfolio in multiple currencies across multiple countries.
- Ellamediate protects your ownership of real estate and ensures that you are protected round the clock.
How Ellamediate Makes Tokenization Possible for Ella-Clients
- Using an 8 point Due Diligence of Pre-Vetted Real estate listed on their marketplace they issue Fiat Value Non-Fungible Utility Tokens which allows for buyers and sellers to interact online seamlessly across the globe buying and selling real estate assets in multiple currencies.
- Their unique offering allows for tokens to be exchanged immediately protected by the smart contracts in the blockchain and verified by Title Cards which are issued as physical proof of ownership.
- Maintaining a proprietary ledger which is verified regularly by their fiduciary partners who ensures that all their activities are above board and complaint-free by global standards.
- The title documents to the assets are held by a custodian and the funds kept in an escrow account managed by an escrow agent.
For more information on how to take advantage of this UNIQUE offering, kindly visit www.ellamediate.com or download the app on Apple app store or the Google Playstore.