Aqarchain, a Dubai-based subsidiary of the real-estate crowdfunding portal SmartChain is launching an end-to-end blockchain platform to tokenise the real-estate market. Aqarchain will use the global open-source blockchain network, Tezos, to launch the listing of properties offered by investors and developers and ‘tokenise’ them.
The platform will enable small investors to own a share of the properties while benefitting from a proportion of the rental income. Individuals can start investing with AED 100, with the upper limit set at $50,000.
Waqas Nakhwa, Founder and CTO of Aqarchain, said, “Right now, real estate is considered to be an investment where the common man would invest once in a lifetime, but people who have enough liquidity, they have multiple options to invest. We are trying to take this as a mass product.”
Properties in Dubai that are 100% complete and freehold can be listed on Aqarchain according to their DFSA licence. The initial investment will be with traditional currencies, though cryptocurrencies might be an option in the future.
Well known for being energy-efficient, shareholders will get an added benefit as big shots of the tech industry like Elon Musk have been creating waves around energy-efficient data mining.
Tezos adds to the trust factor as it is well-rested for facilitating the creation of encrypted smart contracts. In addition, their own cryptocurrency Tez is often used for secure transactions by investors.
Aqarchain also allows netizens to stake decentralised financial assets, providing awards based on the rise in their valuation. Other than this, institution across the Middle East are also using blockchain methods to promote Islamic art and local artists.