What Is Fractional Ownership and How Does Blockchain Enable It?
Fractional ownership is the division of a single asset into smaller, affordable shares. While the concept isn't new, blockchain technology and tokenization make it far more efficient and accessible.
By representing an asset like real estate or fine art as a series of digital tokens, ownership can be easily divided and distributed among many investors. The blockchain provides a transparent and immutable ledger of who owns each fraction, and smart contracts can automate the management of the asset and the distribution of any income it generates.
Glossar
Fractional Ownership
Mechanism ⎊ Fractional Ownership achieved through tokenization allows multiple investors to hold small, divisible shares of a high-value asset, which was previously accessible only to large institutions.
Blockchain Technology
Principle ⎊ Blockchain technology operates as a decentralized, distributed, and immutable ledger system designed to record transactions across many computers.
Immutable Ledger
Record ⎊ This structure provides an append-only, cryptographically secured history of all financial transactions, including the creation and settlement of derivatives.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
Ownership
Claim ⎊ The concept of ownership within cryptocurrency, options, and derivatives signifies a legally recognized or practically enforced right to control, benefit from, and dispose of an asset or contractual position.