Dig Chain will tokenize housing while adhering to government standards
DeFi For You, a crypto peer-to-peer (P2P) lending platform, will be launching their sovereign blockchain called Dig. This new chain will be facilitating real estate governance and tokenization. By using this, investors won’t have to face the problems caused by other blockchain real estate projects as it offers jurisdictional compartmentalization through Cosmos IBC. Dig was built using Starport, the Cosmos SDK, and Tendermint. It uses inter-blockchain communication for making sure that the tokens are traded on centralized exchanges with zero dependency.
In the world of cryptocurrency, real estate tokenization is a hot new topic. There is property and land worth over $280 trillion that is still not represented on the blockchain. Dig will be the parent blockchain to several geo-fenced sub-chains. Each of these chains will represent a jurisdiction and will comply with the local regulations. As per the principal engineer of Dig Chain Jacob Gadikian, the reason behind the failure of other projects tokenizing real estate is that they were being tackled globally. In order to make this work, they must be done locally so that the project can comply with the regulations of different territories and countries.
Through real estate tokenization, the ownership of property and land can be transferred instantly which can cause a disruption in this industry. Another aspect is fractionalization that will allow people to buy some worth of a property. Through this, real estate investment is open to everyone, irrespective of their financial status. Also, NFTs that are representing the real estate can be used as a collateral for a DeFi loan.