Opinion by: Venket Naga, Co-founder and CEO of Serenity
There has been significant changes in the synergy between cryptocurrencies and the real estate market over the past few years. Loans supported with crypto evolved from groundbreaking news to baseline.
There is an increasing intersection between encryption and real-world assets (RWA) and the possibilities are abundant.
Is it the first in Dubai? Symbol real estate projects In North Africa, the largest in the world $300 million in RWA token transactions or First investmentTokenization work is too high to ignore the industry’s trajectory.
This trajectory is set for further growth forecast By 2035, it will cost $4 trillion in the real estate market. As real estate tokenization progresses and at the rate of bullet training, the market is shifting to all types of investors, regardless of their capital or small size, to use democratization dynamics to all types of investors.
A delicate unresolved question could seriously prevent this trajectory: Who inherited these assets when the owner died?
As the cornerstone of traditional property law, inheritance may prove to be a failure point for assets in the real world if its logic is not extended to the logic of blockchain technology.
Possible solutions to inheritance dilemma
Lack of standardized, legally recognized succession mechanisms are becoming a risk vector, growing as rapidly as blockchain-based ownership in real estate.
Although I’ve been very concerned Regulatory complianceWith frameworks like markets in crypto assets (MICA) regulations in place, inheritance is one of the basic pillars of property rights, and is still strangely ignored from regulatory dialogue.
Of course, traditional court-approved inheritance mechanisms may not be suitable for the token real estate industry, but without a digital version, the heirs will face black box custodians, ambiguous jurisdiction claims or permanent loss of high-value assets.
As an afterthought, the inheritance question can be answered with a cold key, as this is one of the most recommended methods Store private keys. While this may work, the answer doesn’t quite solve the worst case.
If the key is lost, so is inheritance. One can explore other options such as Multisigs or custodial trust arrangements, but the basic gap remains, while the local, secure and automatic inheritance layers must be.
Related: Dubai regulator clarifies real-world asset token rules: lawyers
For now, inheritance in Web3 is either insecure or manual, beating the principles of decentralization and automation.
Can answers to the blockchain technology questions that overlap with the real world. This requires creative exploration of elements in current innovation and bringing them together to create something new. This sweet spot of familiarity and novelty can make people call the Decentralized Data Viability Protocol (DEDASP).
Such a protocol can establish inheritance conditions through the capabilities of a smart contract, so that the key can be automatically transferred to assets after the above conditions are met.
One way of such transfer can be by dividing the logic of the multifunction threshold into the keys of the NFTs in the successor. This will create an inheritance infrastructure for automated infrastructure and create clarity between the owner and the heir.
“It’s not your key, not your inheritance,” one might say in a legitimate focus on the keys of the lost successor, taking away the hypothetical fragments of NFT inheritance. If access to the wallet is strictly determined through biometric verification, overlap with the real world occurs.
Technology from strategically integrating fragmentation, NFT, biometric authentication and smart contract execution to automate survivability could be a potential turning point in blockchain’s ability to handle generational wealth transfers at scale. This creates a way to define digital property rights and brings about the natural next step in tokenized real estate evolution: passing tokenized assets to the next generation.
go ahead
Integrating inheritance directly into blockchain protocols is not just a technical challenge; it is also related to the survival of the real world asset industry.
People should not lose their token property because of bad plans, legal gray areas or forgotten passwords. Instead, it should be safely maintained to deliver wealth through generations.
The same powerful solution to asset inheritance must accompany the development of real estate tokenization. Without them, the promise of democratized access and seamless ownership could collapse, and blockchain should solve the same problem.
The good news is that emerging technologies are leading to a better path, where ownership is not stopped with one person, but rather conforms to the core values of Web3’s permanence and independence through built-in, trustless inheritance systems.
Opinion by: Venket Naga, Co-founder and CEO of Serenity.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
