Trends and Use Cases of Web3 in the Real Estate Market
There are currently multiple Web3 use cases that seek to get more out of the Real Estate market and turn it into truly accessible, profitable, and practical opportunities.
What these trending models have in common is the use of crypto wallets, digital tokens, and automated on-chain systems. We explain the specifics below.
What does it mean to connect Web3 with Real Estate?
It means using Web3 platforms to experience, in a different way, everything related to commercialization, financing, and asset management in the real estate market.
In this blockchain-based digital environment, buyers, sellers, owners, real-estate agents, and investors can operate in a decentralized manner. This means lower economic barriers, greater autonomy, and access to new, efficient financial systems.
Trends and use cases of Web3 in Real Estate
In essence, Web3 is a new form of the internet where users interact with each other on public, automated networks.
Below we share some trends on how various actors are creating Web3 use cases in the Real Estate market and how there is already some adoption among early adopters.
Investing in RWA tokens
Here we refer to all the ways of tokenized real estate investments. From security tokens and property tokens, to utility tokens from real-estate companies and crowdfunding tokens.
One example is the RETF token, where users invest in a real-estate crowdfunding fund that runs on the Solana blockchain.
Speculating on price variations
These are basically companies that develop investment services in perpetual markets, which in turn are based on real-estate price movements.
Digital payments and closings
This is a new way to transact real-estate properties using blockchain technology. Its main benefit is improving transparency and efficiency at the time of closing transfers.
DAOs
Decentralized autonomous organizations that operate around real estate. Either as communities granting benefits to access leisure venues such as a club or a café, or as groups of people interested in investing in real-estate projects.
To be part of these organizations you need to buy tokens (for example, NFTs) that validate your participation.
DeFi optimization
Tokenized Real Estate assets can operate within the decentralized finance system.
That is how tokens related to properties and real-estate operations are traded and generate extra returns in lending protocols, DeFi HELOCs, on-chain insurance, private credit, and decentralized exchanges.
H2 Which Real Estate startups in Web3 stand out?
Here is a brief list of standout real-estate startups operating in Web3:
- RECC: a real-estate crowdfunding fund that runs on the Solana blockchain through its RETF token.
- PARCL: a perpetual DEX on Solana to speculate on neighborhood real-estate prices in the United States.
- Propy: a protocol on Solana that offers on-chain real-estate escrow solutions.
- LinksDAO: a DAO in the Real Estate sector that provides benefits for access, purchasing, and operations of golf courses.
FAQs
The Web3 ecosystem is still in its early stage of development, so these are some of the initial trends related to the Real Estate market, and it is common for questions to arise, even among the most involved users.
What does it mean to invest in real estate with Web3?
It means taking advantage of the benefits of tokenized Real Estate investments, where financing processes are enhanced by automated smart contracts that run on the blockchain.
What is the difference between a membership token and a financial token in real estate?
A membership token can be a utility token that grants exclusive benefits offered by a protocol, whereas a financial token is one directly related to investing in crypto real estate.
What risks exist when using Web3 to manage real-estate operations?
These would be the risks associated with tokenizing real-world assets (RWA), such as Web3 scam risks, protocol hacks, and legal complications in the traditional Real Estate environment.
What are the latest news items regarding Web3 and real estate?
The latest relevant news regarding Web3 Real Estate is that RWAs on Solana surpassed $1 billion in TVL, with tokenized real estate being one type of real-world asset.
Conclusion
If you’re interested in getting more involved in the world of Web3 and real estate, the next step is to try out a Real Estate Tokenization platform that offers related services or financial products (Always DYOR). This way, you’ll be able to experience for yourself the benefits of investing in Crypto Real Estate.
