The Financial Frontier: Where Decentralization and Assets Meet

·3-min read

The potential of bringing real-world (off-chain) assets, such as art, real estate, and stocks, into the decentralization industry has been called revolutionary, and it is now looking more realistic than ever. Through a process called “tokenizing,” or linking off-chain assets to on-chain tokens which reflect their value, the “decentralized finance” industry has sprung out of alternative financial instruments which are superior instruments for their users. According to financial experts, this is the next step in the evolution of the industry.

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Consider what happens if the influence of crypto advancements reaches common assets such as real estate if you will. Imagine getting a mortgage in just a few hours. Now, imagine not only getting a mortgage, but imagine getting PAID to do it. What’s more, there will be little to no need for middlemen of the financial industry to deal with either, meaning no bankers and no brokers. It may sound too good to be true, but believe it or not, the wheels are already in motion and the future of real estate is moving forward rapidly.

Real estate, which is a 230+ trillion-dollar global industry, has already begun crossing the bridge over the chasm between off-chain assets and the decentralization space, via a handful of companies. Though a small handful it may be, they demonstrate tangible progress on the road to universalizing the application of newer technology such as AI and decentralization technology. These attempts at venturing into the financial frontier have not been without benefit either; even in cases where property isn’t bought or sold directly for alternative payment forms from Fiat, the decentralized platform to which it is connected has created some interesting advancements in the market.

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There have been numerous platforms based on technology that utilize tokenization to speed up processes and lower costs in real estate transactions. This, along with the new transparency created by DLT (distributed ledger technology) and the promising results from these emerging applications could not be better in terms of generating trust in the real estate market. DLT features a common database on which all transactions are recorded via its decentralization technology; this technology not only makes financial transactions more accessible to buyers, sellers, and investors, but also assists in the management, tracking, and recording of data across multiple industries.

One decentralization project in particular has quietly been penetrating all markets, real estate included: OpenDAO is a protocol specifically designed to handle tokenized real-world assets. At the forefront, they have created a multi-collateral currency pegged to the price of the dollar that can be backed by real estate, stocks, and nearly any other asset, thereby bridging the gap between DeFi and an entire world of untapped value. They have been working with several of the top 100 tech companies, including Algorand (ALGO,) Elrond (eGLD,) and others, to create a financial ecosystem that offers not only better cost/time efficiency, scalability, and security, but also real-world value and absolute acceptance in every conceivable market.

Considering how financial services have become heavily influenced by technological advancement in recent years, the gap between what is on-chain and off-chain is closing more rapidly than anyone could have anticipated. We may soon find that the value, security, and acceptance of decentralization forms of payments has outpaced that of the financial industry’s middlemen. This fact is certain to reach the height of clarity when decentralized finance is fully embraced by the home market, and what is now considered to be financial-pioneering becomes commonplace.

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