How is RealBlocks using blockchain technology?
Tokenization - Similar to asset securitization but more efficient and at a lower cost, tokenization can be applied on blockchain to any tangible or intangible asset. Tokenization holds particular relevance for real estate investing as it functions to streamline the transaction process, reduce fees and investment minimums, ease diversification, and provide liquidity options for illiquid assets. In doing so, tokenization may both enhance functionality and create previously non-existent capabilities in the real estate industry.
Compliance - We are designing our platform with the goal of allowing digital securities to be issued to investors in a regulatory compliant manner from day 1. We intend to partner with an SEC-registered broker-dealer to enable compliant sales of these digital securities to investors located in the United States.
Smart Contracts - Our smart contracts will be designed to confirm applicable regulatory guidelines have been met on every trade using rule sets that automate traditional manual checks. Our solution extends outside of our platform as well. For example, a digital security share will not be able to leave a user’s wallet if our system doesn’t recognize the recipient’s wallet. We also intend to streamline various processes, such as disbursements with smart contracts, with the goal of allowing greater control and visibility into funds at a fraction of the traditional cost.