A New Platform for Self-Storage Investors
Pinnacle Storage Properties has committed to list more than $100 million in storage assets on Earn.re, a blockchain platform for commercial real estate financing designed to connect lenders and accredited investors directly with project sponsors.
To understand blockchain, you have to first understand the fundamentals of tokenization (sometimes called cryptocurrency) and blockchain technology.
What is Tokenization?
Tokenization is digital money that is created, held, and spent electronically around the world. It is permissionless, immutable, and decentralized.
Tokenization is permissionless because you do not require permission from any central authority, bank, or company and you do not need to show an account or I.D. to be an active participant in the network.
Tokenization is immutable because You cannot edit or delete anything that has already been published on the blockchain. You can only add to it.
Tokenization is decentralized because tokens are not owned by any company or central authority.
The benefit of using tokenization is that you control and own your money.
- Tokenization is a peer-to-peer network that eliminates the use of a middle man (banks or online payment systems like Paypal).
- If you’re using a bank and the server goes down, you will not be able to access your funds or make payments from your account. This won’t happen with Tokenization.
- If you’re using a bank, you need permission from the bank to make purchases. With tokenization, you don’t need permission. You control your money.
- If you want to send billions of dollars across the world, it will take weeks and you will be charged hefty fees. With tokenization this transaction is complete in a matter of minutes.
What is a Tokenization Blockchain?
A blockchain is a simple way of passing information from A to B in a fully automated and safe manner.
- It is a continuous chain in which you cannot delete or add transactions.
- Blockchain is a public transactions ledger, in which everyone can see all transactions ever made and track them from beginning to end.
- Blockchain is run by a global network of computers that download transaction history and verify each transaction.
- There is no point of failure on a bitcoin blockchain. If one person disconnects, another will replace him.
- All false information is ignored. In other words, all transactions are visible to the network from beginning to end.
Blockchain technology is an exciting platform that gives commercial real estate sponsors access to a global community of investors that are looking to place money in U.S. based real estate opportunities, and it provides a level of transparency that has not existed before in a real estate transaction.