Tokenizing real estates has been considered as one of the applications of blockchain technology for several years, and real estate managers have paid a great deal of attention to it. Last year, French company Mata Capital took a major step in the industry, tokenizing its real estate worth of € 350 million through the Ethereum blockchain. Ethereum is the second largest digital currency in the world.
Mata Capital intends to attract more domestic and foreign investors in the future. The long-term goal of this project is to create an investment platform where everyone can participate and invest in sectors such as real estate, infrastructures, and so on. All smart contracts developed for Mata Capital have been reviewed by ConsenSys Diligence, which has a team of security experts in blockchain technology.
The real estate industry used to be a rigid industry in the past, but now blockchain technology can be used to split and divide real estate and distribute stocks among micro-investors and institutions.
When Ethereum was launched in 2015, the digital currency community has extensively developed token standards, and smart contracts with these standards contribute to the legality and compatibility of tokens in the Ethereum network.
The Codefi platform facilitates the entry of investors into the Mata Capital project. Investors can create an account on this platform, fill out the forms of customer identification and anti-money laundery, and finally upload all the required documents. Eligible investors can give their Ethereum address and receive the purchased shares once the work is completed.
Once approved, Mata Capital uses the Codefi platform to verify a digital certificate using its private key, allowing investors to transfer real estate tokens. Investors then receive a receipt that is linked to a transaction made on the Ethereum blockchain. This is truly one of the amazing uses of the Ethereum blockchain.
The blockchain technology can be of great interest in three areas for real estate:
1. Digitization is inevitable. The real estate industry is still traditionally managed and there is a lot of paperwork in it. Platforms like Codefi can create digital and secure layers to modernize the industry. Ethereum with its capabilities can help a lot in this regard.
2. Transparent assets are emerging. The 2008 crisis set a clear example of vague assets, and now the Mata Capital blockchain solution provides a new standard for asset transparency. The use of blockchain technology in real estate will create transparency and investors will have enough information to make decisions and analyze risk.
3. In many countries, investing in private equity funds is only available to reputable institutional investors, and this type of investment requires a minimum amount of capital that many cannot afford but using the blockchain and platforms like Ethereum can make investing easier and allow everyone to participate. This is a win-win game for token issuers and investors.