Blockchain is an innovative technology that allows data to be recorded and stored in a secure, transparent and decentralised manner. Its application covers various industries, including tokenised real estate investments, such as those offered by TokenKey. In this section we will explain in a clear and accessible way what blockchain is, how it works and why it is relevant for investors.
Definition of Blockchain
The blockchain is a distributed data storage system that records transactions in cryptographically linked blocks. Each block contains information about the transactions carried out, a reference to the previous block and a time stamp. This structure guarantees that the data is unalterable and verifiable by the whole network.
Blockchain works as a ‘digital ledger’ that allows for the secure recording of transactions without the need for intermediaries, increasing the reliability of the system.
Main characteristics of Blockchain
Decentralisation: There is no central entity that controls the data; the information is stored in a distributed network of nodes.
Security and Transparency: All transactions are recorded in a public and verifiable way, which reduces fraud.
Immutability: Once recorded, the data cannot be modified or deleted, guaranteeing its authenticity.
Smart Contracts: Programs that are executed automatically when certain conditions are met, eliminating the need for intermediaries.
How Blockchain Works
The process of a blockchain transaction takes place in several stages:
Generation of the transaction: A user carries out an operation, for example, the purchase of a property token.
Network verification: The transaction is validated by the nodes through a consensus mechanism.
Registration in a block: Once approved, the transaction is grouped with others in a new block.
Link to the chain: The block is linked to the previous ones, ensuring the integrity of the information.
Network update: All nodes store an updated copy of the blockchain.
Applications of Blockchain in Real Estate Investments
Tokenisation of Properties: Divides real estate into digital tokens, facilitating their sale and purchase and increasing liquidity.
Reduction of Intermediaries: Streamlines processes and reduces costs by eliminating third parties in transactions.
Greater Transparency: Unalterable and accessible records improve confidence in the market.
Automatic Execution of Contracts: Smart contracts allow for the automatic management of rentals, payments and property transfers.
Importance of Blockchain
Blockchain is a key technology for the digital transformation of the real estate sector. Its security, transparency and efficiency make it an ideal tool for investment platforms such as TokenKey, allowing users to access real estate assets in a simplified and reliable way.
If you would like more information on how blockchain works at TokenKey, please refer to our help sections or contact us directly.