Opinion by: Venket Naga, Co-Founder and CEO of Serenity
Synergies between cryptocurrencies and the real estate market have moved significantly over the last few years. Purchase properties with crypto-supported loans have changed from groundbreaking news to baseline.
There is a growing intersection between crypto and real-world assets (RWW), and the possibilities are abundant.
Whether it’s first in Dubai Tokenized Real Estate Project In Mena, the largest in the world $ 3-billion RWA tokenization deal o First-time investmentsTokenization efforts are too high profile to ignore the trajectory of this sector.
This trajectory is set for further growth, along with the Forecasting The $ 4 trillion of the real estate market was token by 2035. With the promotion of real estate token with a bullet-train speed, the market was moving to a democratized dynamic accessible to all kinds of investors, no matter how big or small their capital.
A subtle, unanswered question can stop this critical trajectory: Who inherits these possessions when the owner dies?
As a bedrock of traditional property law, inheritance can prove to be a point of frustration for real-world assets if its logic is not scaled in blockchain technology.
Possible solutions for the dilemma of inheritance
The absence of a standard, legal recognized mechanism of successively becomes a risk vector that grows rapidly as a blockchain based on real estate blockchain.
While much attention has been paid Compliance with regulationWith frameworks such as crypto-assets regulation markets (MICA) created, heritage, one of the major pillars of property rights, remains uniquely removed from the regulatory conversation.
Provided, the traditional heritage mechanism recognized by the court may not be suitable for the tokenized real estate industry, but without a digitized version, the heirs face the custodianship of the black box, unclear claims of jurisdiction or permanent loss of high-value assets.
As a thought, the inheritance question can be answered by cold keys, given that it is one of the most recommended ways to Store private keys. While this may work, the answer is not too tackle the worst case of situations.
If the key is gone, so will the inheritance. One can explore other options, such as multisigs or renovation of care trust, but a basic gap remains where a native, safe and automatic layer of inheritance should be.
Related: Dubai Regulator has clarified the real-world tokenization rules: attorney
Like standing, web3 inheritance is either uncertainty or manu -manong, defeating the principles of decentralization and automation.
The answer to the inheritance question to blockchain technology can be found in the technology itself and its overlap in the real world. It integrates with the creative exploration of the elements to the current changes and combines them to create a new one. The sweet area of familiarity and freshness can make what a decentralized data survivors can call.
Such a protocol can establish inheritance conditions through the capabilities of smart contracts, creating an automatic transfer of keys to the property in fulfilling such conditions.
An avenue for this move can be through the Sharding key to the NFTs to alternatives, using the logic of a multisig threshold for decryption. It will build an automatic infrastructure of inheritance with clarity established between the owner and the heir.
“Not your keys, not your inheritance,” some may say a reasonable concern for the keys of the successors lost, which removes access to the hypothesized nft shards of inheritance. This is precisely where the overlap in the real world occurs when accessing the dompets is established strictly by proving the biometric.
Strategic integration of technologies such as sharding, NFT, biometric validation and implementation of smart contracts to automatically safety can be a potential point for the ability to blockchain to handle the generational transfer of wealth to scale. This creates a path to define digital ownership rights and brings the natural step to the evolution of tokenized real estate: passing tokenized possession of the next generation.
Advance
Integration of inheritance directly into blockchain protocols is not just a tech challenge; It is also about the safety of the real-world asset industry.
People should not lose their tokenized ownership due to poor planning, legal color -out area or forgotten passwords. Instead, it should be safely maintained to pass the treasure through generations.
Equally stable solution for sequences of possession should accompany the evolution of real estate tokenization. Without them, the promise of democratized access and seamlessness can be separate, which has covered the same problems the blockchain should be fixed.
The good news is that emerging technology opens the door to a better path, where ownership does not stop a person but continues through built-in, heritage systems that are unbelievable matching the basic web3 values of permanentity and freedom.
Opinion by: Venket Naga, co-founder and CEO of Serenity.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
