Pioneering DeFi in Real Estate Investment with HomeCubes

Blockchain, as a breakthrough to the digital industry, is changing our world in many aspects. Generally speaking, blockchain networks are making all markets and industries more efficient and transparent. Since the introduction of Bitcoin and other major cryptocurrencies, blockchain has been evolving by bringing innovative services and products into the digital markets such as Defi, real world assets tokenization and fractional ownership. DeFi or Decentralized Finance is one of the most interesting services that blockchain has introduced to the financial markets. Decentralization is the nature of blockchain and finance is what the banks and big financial institutions have been traditionally doing. 

All the financial services since their existence were centralized within major banks. Blockchain is now changing the landscape by decentralizing financial services.

What is DeFi?

DeFi or Decentralized Finance is blockchain based financial services that is aiming to shift centralized financial services operated by traditional banks to peer to peer services within a blockchain network like Ethereum. All financial services like paying and receiving money, trading, lending and borrowing, funding and insurance will be provided with no intermediaries such as banks, brokers and humans in place. Instead, all the required actions will be administered by a set of programs called smart contracts that are developed to operate decentralized finance. In other words, all predetermined conditions of any financial service are automated by smart contracts and a transaction is made once those conditions are met. 

DeFi and the real estate sector

Blockchain in general and DeFi in particular brings a wider range of valuable benefits to the real estate sector. Blockchain makes fractional property ownership possible by tokenizing properties with a blockchain network. Besides, blockchain opens local real estate markets’ doors to international investors from all around the world. DeFi NFT marketplace is open 24/365 and is borderless. As such, investors from all around the world are able to invest in a property in their desired geographical location which will lead to better liquidity for the real estate sector. Furthermore, as fractional ownership is securely possible with DeFi real estate, more small scale investors are able to enter into the market, so it improves liquidity even more. On top of that, DeFi makes real estate investment more efficient by eliminating middlemen like lawyers, banks and brokers. At last, DeFi brings more transparency into the real estate market.

Challenges and Complication

More industries and organizations are now recognizing DeFi and planning to cope with the changes DeFi is making to all industries. There are quite a few reputable platforms like Homecubes in Dubai and other parts of the developed world who are offering investors to step in and invest fractionally in the real estate market and they are doing quite well till now. However, the main challenge along the way is the lack of appropriate regulations for fractional ownership and DeFi real estate. Even though some governments like the UAE government are trying hard to put a set of rules and regulations for blockchain and fractional ownership, there is still a long way to go in terms of regulatory obstacles and public acceptance. For further information on UAE regulations on Asset Toenization, you may follow the link.

Homecube is pioneering the DeFi real estate in Dubai

Homecubes is the leading platform in the UAE to make fractionalized property investment possible for investors. Our mission is to open the UAE real estate market to investors from all round the world with any amount of investment budget. Fortunately, the UAE government in general and the Dubai government in particular are in the process of legalizing fractional ownership and asset tokenization across the country. What Homecubes is doing right now is to work closely with the government officials to comply with regulations and legislations in order to safeguard investors’ money.

Once done, our platform is ready for investors across the globe to invest in the Dubai real estate market fractionally and enjoy capital growth of their investment as well as passive income from renting the properties out.

Final words

Decentralized Finance is finding its way through all markets and gaining popularity, due to several benefits it provides. Asset tokenization and fractional ownership is not possible without DeFi and it is worth mentioning that they are all depending on the blockchain technology.

The future looks bright for blockchain, DeFi and asset tokenization, however you must be very cautious. 

Like mentioned earlier, the market is not mature enough yet and shortage of robust regulations is still a challenge. As such, there are an endless number of scam projects that are designed to take your money from you, as less people in the market have enough knowledge and experience. 

Hence, it is mandatory for you to check the projects with officials to see if the project is legitimate and supported by the local government.