Previously, transacting assets such as property exclusively through digital channels has not been the norm. UK-based property development company Brik by Brik has announced the launch of BRIKN, its DAO ecosystem on the blockchain that rewards holders of the token from the revenue the company generates from its soon to be vast property portfolio. The company is targeting a property portfolio of £50 million within the next five years.
Brik by Brik Director Mark Goodman said: “Investing in real estate has for a long time been one the world’s favourite tools to achieve financial freedom. Now, with blockchain technology, we’re making cryptocurrency real estate investments easier and more accessible to everyone. Imagine being able to have fractional ownership of multiple income-generating properties from an investment as low as $500. This is next generation property investment powered through blockchain.”
Crypto real estate investing is the process of tokenizing real-world properties and offering them as fractional property-backed crypto investments to investors. In other words, a real estate property is purchased through fiat via the sale of the token and investment received, and the token represents a percentage of the property portfolio. BRIKN however is looking to reward owners of the BRIKN token with percentage of the entire property ecosystem. Tokens are linked to the properties through the use of smart contracts that execute rent payments and distribution to investors of tokens automatically through the BRIKN Vault staking platform.
By allowing fractional ownership of the ecosystem’s rewards, blockchain lowers the barriers to investing in real estate. The traditional real estate investment process presents a number of hurdles to potential investors. For example, in order to purchase a rental property, a prospective investor will often require a mortgage – in effect, eating into the property’s bottom line. The investor must also take care of…
