Aqarchain — The decentralized marketplace that could change the real estate industry
Of the several industries that blockchain technology has positively impacted, the real estate industry stands out the most. And one of the biggest trends currently driving the real estate sector is the emergence of the sharing economy. The real estate industry has long been constrained by high entry barriers for the typical investor. But now, thanks to blockchain technology, which enables tokenization, smart contracts, fractional ownership, and more such functionalities, all of that is about to change.
Essentially, tokenization of real estate assets is the process of generating a virtual token that symbolizes ownership of an asset. Due to their increased flexibility in usage, tokens may be used to represent real estate-related ownership in a variety of ways. From residential and commercial property to industrial spaces and retail spaces, you can now tokenize several types of real estate.
When a real estate asset is tokenized, it becomes a permanent and immutable record on the blockchain with legal significance and, as a result, economic worth. And since tokens are backed by tangible assets, their value will appreciate or depreciate according to the asset’s performance. They also stand to benefit from the multiple benefits of blockchain technology, including secure and frictionless storage and the seamless transfer of cryptographic tokens.
Similar to tokenization, another concept that is driving positive growth in the real estate industry is fractional ownership — a type of collaborative consumption in which the entire cost of a property is dispersed among a group of owners or users. Considered to be the next big wave in investment technology, fractional ownership is gaining much traction across economies and geographies. And now, backed by the power and potential of blockchain technology, Aqarchain is here to change the face of the real estate industry through decentralization.
What is Aqarchain?
A blockchain-enabled real estate investing platform, Aqarchain aims to build a decentralized ecosystem where investment in real estate is as easy as investing in other financial assets, say stocks. And this is made possible through the platform’s decentralized tokenized structure, which allows for the fractionalization of real estate assets. Aqarchain is also the world’s first decentralized marketplace for real estate NFT. AQR is the native utility token of the Aqarchain platform, and the parent contract of AQR will be on ETH with a bridge to POS (Polygon — MATIC), Binance Smart Chain, and Tezos.
Key offerings of Aqarchain
Hybrid tokenization on the Aqarchain platform is done by issuing an NFT for each property and then fractionalizing the NFT, with each fractional token of the NFT representing one share in the asset.
Each property’s ownership is verified using the NFT that was established for that property. Further fractionalization takes place with fractional token buyers becoming fractional owners of the NFT. They will also have access to the title deed as metadata.
- Fractional Tokens
The information on the title deed with respect to area and property value will be obtained from the number of fractional tokens and the value of each token. This token will allow the owner to claim property ownership, vote for the property’s governance, and claim returns on the property, with any capital appreciation or depreciation in the property’s value occurring in line with market trends.
Accredited investors will be able to acquire fractional tokens of each NFT of the property upon successful completion of relevant KYC requirements. Fractional tokens can be purchased with crypto assets such as BTC, ETH, BNB, XTZ, USDT, USDC, and the native AQR token. Additionally, all purchases completed with AQR tokens will also receive an extra discount.
- DeFi Staking
The AQR token can be staked on the Aqarchain platform to earn more AQR rewards. The platform also allows XTZ staking, enabling users to stake XTZ to earn AQR rewards.
- Governance Voting
Following the DAO governance model, Aqarchain also allows holders of fractional tokens to vote on their property decisions by depositing AQR tokens. Typically, the voting will be held on matters like short-term leasing, long-term leasing, buy-out offer, sale offers, valuation of property, and listing the properties.
The real estate industry is ripe for disruption thanks to the decentralization enabled by blockchain technology. And there’s little question that the widespread adoption of decentralized projects like Aqarchain will fundamentally alter the way the real estate sector operates. A unique way to unlock NFT liquidity and open up community access to fractional ownership of real estate assets through NFTs, Aqarchain is clearly setting the bar high for decentralized real estate marketplaces.
To learn more about Aqarchain, click here.