A leased ownership generally restricts property transfers more than a true deeded ownership interest. So as an owner of a timeshare, you might be restricted from selling or transferring your timeshare to someone else.
Not only does fractional ownership offer opportunities to people who otherwise may not be able to afford or maintain expensive assets on their own, it also provides sellers of these assets with an entirely new consumer base. Assets such as artwork are generally thought to be highly “illiquid,” meaning that even though a work of art may generate a handsome return on investment, finding a buyer can be extremely difficult. One way to increase liquidity in a market, is to increase the number of potential buyers. By enabling fractional ownership, Spl.yt has the potential to expand the buyer pool by a significant percentage. Spl.yt’s protocol can automatically initiate and run digital auctions, eliminating the need for auction houses, which inevitably take a percentage of the final sale — money out of the seller’s pocket.
Given the obvious advantages of fractional ownership to buyers and sellers, why hasn’t this capability been invented previously? The short answer is that the technology to facilitate the sale, use, and maintenance of fractionally-owned assets simply hadn’t been invented until recently. This technology is, of course, blockchain.
Spl.yt uses smart contracts, which are essentially blockchain-based applications, to automate the many transactions involved in the sale, use, and maintenance of fractionally-owned assets. In other words, a process that would normally require intermediaries to carry out (sometimes at such high cost that they wouldn’t be profitable under traditional frameworks), can be simply executed by technology. For example, say two owners of a vacation home want to use the property over the Fourth of July weekend. This process might play out in the below manner:
Alice and Bob each deposit a small amount of Spl.yt tokens (SATs) in order to request use of the property on the same Fourth of July weekend.
Because the two parties requested the same dates, a bidding process is initiated.
Alice bids more than Bob, and so she earns the right to use the property.
Bob’s tokens are returned for him to use on another timeslot’s reservation.
We’re only beginning to realize the potential of blockchain technology, but fractional ownership is certainly one example of how blockchain can give rise to new opportunities that were never before possible. While the Spl.yt community is working to solve the technical problems to make these, the only question that remains for you is: are you ready for your Lamborghini now, or what?
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