Real estate tokenization will be the new investment revolution

Maciej Zieliński

27 Jan 2021
Real estate tokenization will be the new investment revolution

Why is real estate tokenization likely to change the property market permanently? What are its benefits for developers and owners? What does the issuance of such tokens mean for small investors?

In the three years from 2016 to 2019, the value of the real estate market increased from $7.6 trillion to $9.6 trillion. Its importance is inalienable, not only because of its high value, but also because of the key role that real estate plays in everyone's life. At the same time, it is one of the most complex markets, full of ambiguities. So why would we want to introduce tokenization to it?

Real estate tokenization is the process of creating digital assets that represent a single property or their entire portfolio. Tokens are created and issued with the help of systems based on blockchain technology. Securities digitised in this way can solve a number of problems present in the traditional real estate investment model, such as a high barrier to entry or low liquidity.

A lot of doubts and inaccuracies have grown up around the term itself, so on the Nextrope blog we present the most important benefits of real estate tokenization and explain its process step by step. 

Benefits of tokenization of real estate

Diversification of the investor group:

Property tokenization allows property values to be divided into smaller parts using a system based on Blockchain technology. This allows owners and developers to offer assets with a much smaller denomination than in the traditional investment model. Thus, they extend their distribution to a much larger and more diverse group of investors. 

Allowing such miniature investments in large projects could seem highly unprofitable due to the need to involve intermediaries, each time securing the interests of both sides of the transaction. Thanks to smart contracts present in the blockchain, which are executed automatically, the involvement of intermediaries is not necessary, which significantly reduces costs.

Increase in liquidity 

Real estate is a highly illiquid asset, which has so far increased the advantage of institutional investors over individuals. Tokens can be freely traded on dedicated platforms, where their price fluctuates depending on supply and demand. Liquidating an investment in a token worth a few dozen dollars is therefore much easier than selling a property worth several million. This is particularly important in the context of discounts for illiquid assets and liquidity premiums. 

Easier price determination

Once tokenized, the value of a particular property on the secondary market is updated in real time based on order records. The paper-based systems currently used for this are much slower and full of asymmetries between the information provided by the parties involved.

Real estate tokenization - a new level of security

Blockchain provides the highest level of security among all digital solutions! Since tokens representing assets are protected by cryptographic encryption, in order to access them it is necessary to use private keys. And these are possessed only by token owners.

Real estate tokenization step by step  

Tokenization of real estate can be divided into three stages:

1. Determination of the structure

The structure of the offering depends on a number of elements, including the type of asset, the jurisdiction and the applicable regulations. At this stage, issuers decide which property will be tokenized, whether it will be an existing or an emerging investment, and determine the legal status of the entire project (e.g. a real estate fund or a Special Purpose Vehicle with a single asset). 

In addition, they establish the rights of shareholders - token holders. It is determined whether the investors have, for example, the right to dividends or asset management. Multiple tokens can also be created based on a single property, representing different investment classes. One token may represent, for example, equity and another may represent preference capital.

2. Choice of technology

At this stage a decision is made as to what blockchain protocol will be used for the project. Will it be a solution specially created for the purposes of the project? Or will one of the existing ones such as Ethereum or Hyperledger be used? The primary and secondary market for the tokens is then determined. Where should they be available for initial issuance? On which exchanges will investors trade them? An alternative is to create your own platform for issuing and trading tokens. 

3. Creation and distribution of tokens  

Once the technology decision is made and the transaction is structured, the next step is to launch the token and hand it over to investors. 

Real estate tokenization - summary

By placing traditional assets inside an easily tradable token, digitised securities offer a range of entirely new benefits such as widening access to investment, lowering the barrier to entry and increasing the liquidity and transparency of transactions. These are improvements whose positive impact is immediately felt. Furthermore, implementing tokenization does not require turning the entire property market upside down. It is merely a significant improvement of the mechanisms already present there. 

Therefore, we believe that real estate tokenization is one of the most promising uses of blockchain technology. 

Want to know what else can be tokenized? Check out our article on precious metals tokenization.

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What is Account Abstraction?


10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.


Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial


03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.


Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai


ChainID: 100

Symbol: XDAI

Block Explorer URL:

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.


By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon.