How are you all? Today I will discuss with you about Tokenization of Real Estate benefits and challenges.I will try to present my experience.  I am young and have very little experience so please excuse any mistakes.Blockchain technology, which has been around for several years, has changed the global landscape. Experts say that services based on blockchain will have a big impact on many parts of the economy, especially real estate, financial institutions and business tokenization.
Real estate is considered as one of the safest and most profitable investments. Any person will almost certainly recommend buying an apartment or commercial property.

[Source](https://pixabay.com/photos/bitcoin-number-metallic-metal-3090250/)


However, many may find this challenging to accomplish without a substantial amount of money. Through tokenization, the value of real estate is converted into a token that is maintained on a blockchain, allowing for digital ownership and transfer. Each of these divisible tokens represents a fractional ownership position in real estate. Individuals now used to require significant amounts of capital to invest in real estate. It allows investors to invest smaller amounts of money, thereby making it more accessible to a wider range of investors.Challenges in real estate tokenization
Implications for Securities Law: Tokenization of real estate will generally be considered a security, but an investigation of each unique token should be done at the outset. If the token is a security, it must be sold with a prospectus. If it is not a security, it must be sold with an exception, such as an "accredited investor" exemption.
Technical difficulties: In addition to the general cybersecurity threats that any blockchain project should have, such as ensuring that smart contracts are well coded and constantly audited to avoid exploits, hacks and attacks, tokenization projects face specific technical difficulties. This can be accomplished in a number of ways, the most popular being by incorporating an oracle into the smart contract, which is a mechanism for receiving data from the outside world and guaranteeing that all information is up-to-date.

[Source](https://pixabay.com/photos/cryptocurrency-concept-altcoins-3423264/)


The future of real estate tokenization
Tokenization in real estate assets is a practical and cost-effective way of investing, but as a relatively recent investment option, authorities have yet to create a set of standards governing real estate tokenization. The type of asset being tokenized affects which regulatory framework will be used.Today's discussion ends here.  I hope you find it interesting and able to understand.  Share your thoughts on today's topic.  Wishes and blessings to all.  Everyone stay well stay healthy stay with Steemit