As real-world assets move on-chain, missing inheritance tools could put tokenized real estate at risk.
- By 2035, $4 trillion in real estate could be tokenized.
- No clear rules exist for inheriting tokenized property.
- Emerging tech like smart contracts and biometrics may offer solutions.
Real Estate and Crypto Are Colliding
The line between real estate and crypto is getting thin. Across the globe, more property deals now use tokenized real-world assets (RWAs). In Dubai, licensed projects are underway. A $3 billion tokenization deal is already in motion. Experts say that $4 trillion in real estate may be tokenized by 2035. This means small or large investors can own shares of property using digital tokens.
The Missing Inheritance Link
Despite the growth, one big question has no clear answer: Who inherits the tokens when someone dies? Traditional legal processes don’t easily apply to the blockchain. If the digital keys to tokenized property are lost, heirs may never get access. This weak spot could hurt the whole tokenized asset space. Today’s blockchain lacks the legal and technical systems needed for smooth asset transfer after death.
Why Cold Storage Isn’t a Full Answer
Many crypto users store their asset keys in cold storage devices. However, this doesn’t solve the problem of inheritance. If keys are lost or heirs don’t know how to retrieve them, the assets are gone. Alternatives like multisig wallets or custodial trusts exist, yet none offer a fully automated or secure solution built into the blockchain itself.
A Blockchain Inheritance Solution
One idea gaining traction is a decentralized data survivability protocol. This would use smart contracts to transfer ownership after death. It could also include NFTs that hold parts of a cryptographic key. Heirs could unlock access together using a multisig process. Add in biometric authentication, and there’s a path toward automated, secure inheritance.
Inheritance Structures Must Evolve
New ways to manage digital assets after death are essential. As people invest in tokenized real estate, they need a clear way to pass it on. Otherwise, the Web3 promise of open, lasting ownership could fail. Combining old-world ideas like inheritance with new blockchain tools may be key. With smart design, inheritance can be built directly into Web3’s foundation.
Source: cointelegraph.com
