What is REAL (REAL) Crypto Beginner’s Guide
Those who see the blockchain as the future of commerce and finance have imagined incredible uses for it that span multitudes of industries. The developers behind REAL have experience in the process and economy of real estate crowdfunding but have pinpointed several problems within the system. They believe these problems can be solved by bringing this form of crowdfunding to the blockchain.
Real Estate Crowdfunding
REAL stands for Real Estate Asset Ledger, and is an ecosystem driven by smart contracts that allows for global access to the massive real estate investment industry. The developers were inspired by their own investments in the process of real estate crowdfunding and hope to use this platform to increase market liquidity and provide investment access to more areas of the world.
Real estate crowdfunding allows multiple investors to purchase a fraction of a property. Once investors have a stake in that property, they receive a profit in result of the renting or purchase of said property. This kind of crowdfunding has become more and more popular over the years, now with over 100 websites dedicated to this investment technique. However, the developers of REAL have found problems in the crowdfunding process that could be solved by moving real estate crowdfunding and investments to the blockchain.
REAL – Problems and Solutions
The developers of REAL have found some issues in crowdfunding for real estate that can make investing difficult and inaccessible for many. Some other general problems could just easily be solved through implementing real estate crowdfunding onto the blockchain.
One of the biggest problems is a lack of global access; most crowdfunding portals are designed to target local investors, which leaves out a wealth of international investors who could benefit from the property. Overseas investors have taken over as the biggest participants in real estate investments, and lack of global reach for properties misses out on those huge opportunities.
Other problems consist of the inability to liquify profits if the property has not been sold, dealing with banks and other intermediaries who complicate every process, and lack of trust regarding the crowdfunding websites available.
Cryptocurrency and smart contracts will work together to solve all these problems. REAL’s website is designed to have a global reach, so investors have choices of properties anywhere around the world. Tokenization will allow for the instantaneous buying and selling of investments, which means anyone can cash out their investment at any time without waiting for the property to be sold. The decentralization of the process will also cut out cumbersome intermediaries like banks, and the blockchain and smart contracts will reinforce a system of trust and transparency for all investors.
The REAL token will be utilized on the platform for investment buying and selling transactions. The experience the developers have first hand in real estate crowdfunding and the dedication they clearly have to this project is reflected on their webpage and forum updates, and hopefully will speak to the future success of the platform.