UPRETS Insight | Real Estate Digitalization Is No Longer A Hype

Blockchain technology continues to penetrate the mainstream industries due to its amazing features such as integrity, immutability, robustness, and accessibility. The first application of blockchain was in the cryptocurrency space. We now see it on real estate, public records, insurance, banking, logistics and supply chain just to mention a few.

The idea of digital securities has been attracting heated discussions since the concept was fronted in early 2018. One of the biggest beneficiaries when it comes to the application of blockchain technology is the real estate sector that has been historically known for its “rigidity.” Digitalization of a real estate project comes with a myriad of advantages such as increasing transparency, accessibility, liquidity and also lowers the cost of transactions.

The big question is, “digitalization of real estate a passing cloud”? Some people believe that the entire concept is overhyped and not ready for mass adoption. It is prudent to take caution before you invest in any cause, and the UPRETS team understands why some people are worried. The Initial Coin Offering (ICO) hype of 2017 was a wake-up call for many people and some invested a lot of cash in dubious projects. Some countries like China even banned the launching of ICOs. However, China is working on various blockchain projects and also in the process of launching an official digital currency.

The issues raised by real estate digitalization critics include:

Liquidity Seems to be A Barrier

“Liquidity is the speed with which one can trade digital security without affecting the market price.”

Companies such as UPRETS understand there needs to be an ecosystem for liquidity in digitalized real estate projects to become a reality. It is important to note that tokenizing a real estate project does not make it liquid instantly. There must be demands for the underlying asset before other factors come into play. UPRETS as a market leader ensures that liquidity for its real estate tokens come from the following sources.

Private Market

Partnering with Other Players

Digital Securities Exchanges

There Are Uncertainties When It Comes to Regulations

Countries like the US are steps ahead as they make it easy for digital securities firms to issue digital securties that are complaint through the Securities and Exchange Commission. Creating the right framework requires collaboration from different players and UPRETS is ready for such collaborations. Real estate digitalization firms also analyze the target market to ensure that they provide compliant securities. For instance, UPRETS will have to analyze the securities laws in the European Union if its target customers are based in the EU. The company can thus have different terms for the same portfolio for different people in different countries/ regions.

Blockchain May Expose Confidential Information

UPRETS uses Xbolt for smart contracts while bitcoin is the communication protocol while EWthereum protocol is used to distribute digital securties. A user on the X-BOLT protocol can initiate a transaction and get assurance that a 3rd party block explorer will not monitor the transaction. The approach ensures that there is a separation between data that should be on the public chain and what should remain private.



UPRETS is a platform focused on simplifying investment in real estate.

We are dedicated to providing a convenient, compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.

By utilizing UPRETS platform, real estate developers and assets owners can create digital securities for their properties, allowing investors to benefit from the rental dividends and capital appreciation of the properties in major global cities.

Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.

For more information about UPRETS,

visit www.uprets.com

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