LaProp, a Colombia-based tokenized real estate start-up, has announced the integration of blockchain oracle network, Chainlink, in order to automate rent payments.
The tokenized real estate platform is targeting the Latin American market with the offering. Essentially, the platform provides information on various properties to potential investors with the ability for the investor to buy tokenized shares of a given property with a few clicks.
Why tokenize real estate?
The global real estate market locks away value to the tune of $280 trillion within it. By its nature, real estate is very much an illiquid asset. Furthermore, it presents difficulties for retail investors in terms of market access. High capital property projects are beyond the reach of the ordinary investor. Likewise, property investment in foreign markets can involve additional red tape.
Tokenizing property makes for much better market access for both investors and real estate developers. Furthermore, it will lead to much greater liquidity as there will be less friction for an investor in entering or exiting a real estate position through the purchase or sale of real estate-based tokens. For that reason, there are a number of projects currently pursuing the use case.
Unlocking new use case
The use of Chainlink technology to automate rental payments is a more recent departure, bringing a new use case to life for the decentralized oracle network. The system will rely upon Chainlink Keepers to automate secure rental payments to token holders. Chainlink’s ability to handle smart contract functions makes this possible.
Ordinarily, smart contracts must be triggered manually to execute. Chainlink Keepers enables smart contracts to automate key functions and devOps tasks. In this instance, it will be used to ensure that rent payouts to token holders are executed in a decentralized and trust-minimized manner.
Chainlink co-founder Sergey Nazarov has spoken in the past about the potential for use cases for the decentralized oracle network beyond DeFi. In a recent presentation on the future of Chainlink, Nazarov alluded to the possibilities for the application of hybrid smart contracts for real world use cases in the global gold, real estate and equities markets.
Other potential real estate-related blockchain applications include transferring property ownership based on predefined conditions, locking up real estate collateral for on-chain loans and the development of derivative products that provide specialized market exposure.
LaProp is applying the solution on the BNB chain mainnet. It has also announced that it is currently building multichain infrastructure to provide a real estate data service which incorporates Chainlink Price Feeds - Chainlink’s data backbone that is currently helping to secure billions of dollars in DeFi.Chainlink co-founder Sergey Nazarov has spoken in the past about the potential for use cases for the decentralized oracle network beyond DeFi. In a recent presentation on the future of Chainlink, Nazarov alluded to the possibilities for the application of hybrid smart contracts for real world use cases in the global gold, real estate and equities markets.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.
