Today the Enterprise Ethereum Alliance (EEA) published a
paper about Real Estate use cases for blockchain technology. Some might associate the EEA with private permissioned networks, but the term permissioned is mentioned just once as a short term alternative to using the public Ethereum blockchain. The paper outlines many of the potential blockchain applications in the property sector with an emphasis on tokenization, land registries and standardizing real estate data.
Project financing is one example of tokenization. Instead of needing deep-pocketed investors for a property development project, it might be feasible to tokenize a development and sell fractions in it. The other advantage is that if the investor wants out before completion, the tokens can be sold before the construction finishes. That’s provided there are willing buyers at an acceptable price. Another similar example is to create a syndicate of investors for a large development.
Using tokens for
mortgages is something that’s already happening. The paper describes the potential for raising money from friends, relatives, or banks.
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