What is 0xequity?
Real estate market has long been regarded as a cornerstone of wealth building but high entry barriers, such as down payments, maintenance cost, and legal fees, have historically hinders the access to these mentioned opportunities.
As blockchain technology and decentralized finance (DeFi) rises, platforms like 0xequity are the investment landscape, enhancing accessibility, efficiency, and transparency.
In this article we will discuss how 0xexquity is changing the market for the real world assets with fractional ownership as well as through tokenization.
Tokenization of Real World Assets
The core innovation of 0xequity is the tokenization of the real world assets. Tokenization is actually the process of converting the physical assets on the blockchain. The work of 0xequity is to convert assets like real estate, infrastructure, and commodities into tradable tokens.Investors can simply buy, sell, or trade their tokens on the platform, as each token represents a fractional ownership position in the underlying asset.
Lowering Entry Barriers for Investors
Lowering the entrance barriers to real-world asset investments is one of 0xequity’s biggest benefits. In the past, small-scale investors were unable to participate in real estate or other high-value assets due to the large amount of capital needed. Fractional ownership with 0xequity enables people with limited resources to spread their investments over a variety of assets.
With tokenized shares, for example, a $1,000 investor can now allocate their funds across multiple homes or physical assets, obtaining exposure to various asset classes without incurring large upfront expenditures. Due to the low entrance barrier, investors of all experience levels who wish to diversify their portfolios as well as those seeking to make their first real estate investment are drawn to the market.
Decentralized Finance and Collateralization of Dormant Assets
The incorporation of decentralized finance (DeFi) into 0xequity is among its most innovative features. Peer-to-peer financial transactions are made possible by decentralized finance, which does away with middlemen like banks and brokers and provides creative ways to use assets.
Dormant assets can be utilized as collateral for real-world investments on the 0xequity platform. Tokenized real-world assets can be purchased by investors with cryptocurrencies or other digital assets, for instance, by locking those assets inside smart contracts and using them as collateral. By optimizing asset utility, this strategy enables investors to leverage their current holdings without having to sell them.
