IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2019_35.html
   My bibliography  Save this paper

Influence of Blockchain Technology & Applications

Author

Listed:
  • Jan Veuger

Abstract

Blockchain might be the future of digitalizing assets into small pieces called tokens, of which the process is called tokenization. Transaction costs and speed are reduced, and entering into so called Real Estate Investment Trusts for investing in real estate are no longer an issue. Through tokenization, anyone from this planet can invest in real estate.Context: According to Savills (2017), the total value of world real estate reached $217 trillion in 2015. It only includes developed real estate and could have been much larger when we had counted the vast amount of non-developed land on the planet. One major boundary is the accessibility and the tradability of money. In the current situation, real estate is traded via Real Estate Investment Trusts (short: REITs). The problem with these REITs is the accessibility. Only the few people who can investment above the threshold can invest in real estate. Thereby, currency is another problem, because potential investors in Hong Kong cannot invest in Dutch real estate. This leads to a lack of liquidity on the financial real estate market. Blockchain might be the solution to this lack of global liquidity in real estate. In this way, real estate is purchased via smart contracts, traded via blockchain, and invested in by tokens: all very quickly. In this way, the world has no longer the financial borders from today. In theory, anyone can invest in real estate and make profit.The main question of this research paper is: In what way can tokenizing real estate by blockchain substitute the conventional way of investing in non-listed real estate?The sub questions of this theoretical framework in order to answer the main question are:What is the conventional way of trading non-listed real estate? How does this work? What are its boundaries? What is blockchain? How can it be adopted in real estate? What are smart contracts? What are its (dis)advantages? What is tokenization? How does it work? What are its (dis)advantages? What form of token is important in relation to tokenizing real estate successfully? What are the (legal) hurdles of tokenizing assets? What is the perspective of tokenization?

Suggested Citation

  • Jan Veuger, 2019. "Influence of Blockchain Technology & Applications," ERES eres2019_35, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2019_35
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2019-35
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    blockchain; cryptocurrency; Ethereum; REITs; tokenization;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2019_35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.