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The Future of NFTs: A Visual Exploration into the REAL use cases

Posted on by Shipra

NFTs are more important than you think…

In this article, I explored the REAL use cases of NFTs that are being built, and what they will be used for in the future.

Understanding The Hype Cycle

Have you heard of the Gartner Hype Cycle?

It suggests that disruptive technologies go through 5 key phases:

1. Technology Trigger: the emergence of a potentially disruptive technology.

2. Peak of Inflated Expectations: Early publicity creates hype. (Ex: 2021 Bubble)

3. Trough of Disillusionment: Early projects fail to deliver on promises and the public loses interest. I suspect NFTs are somewhere around this trough of disillusionment now.

4. Slope of enlightenment: The tech slowly starts to show successful use cases.

5. Plateau of Productivity: Mainstream adoption has arrived and broader market applications have proven themselves. Here’s a more detailed visual of the Gartner Hype Cycle from Wikipedia.

In the speculative NFT bubble of 2021, @beeple sold a collage of his artwork called “Everydays: the First 5000 Days” for $69 MILLION.

Similarly, @nbatopshot sold hundreds of millions of dollars of video-collectible moments.

This was probably the peak of inflated expectations.

Now, let’s dive into the real use cases of NFTs.

But first, if you’re not familiar with NFTs, I’d recommend watching this video I made.

Digital Art

Most people think that’s all NFTs are — a speculative bubble of rich people buying worthless JPEGs and MP4s.

But having a platform to buy, sell, and own digital artwork or collectibles is transformative for creators and fans.

NFT Profile Pictures

You might also have seen NFT profile pictures on Twitter.

For example: my profile picture is an NFT I minted using @skogard’s factoria app, which helps separate my account from fake accounts.

Profile pictures are a great starting point because they are unique representations of your identity, and have clear ownership.

NFTs are a way to represent proof-of-ownership. It’s easier to prove ownership of digital assets than physical assets, which is why artwork and pfps are the first use cases.

But they can be useful for a lot more.

NFTs can be used to represent anything that is unique, has an owner, and requires a digital certificate of ownership. Example: domains & usernames.

Domains & Usernames

@unstoppableweb, @ensdomains & @rarible let you buy NFT domains.

One of the big benefits of NFT domains is that they are transferrable.

Domains on Godaddy and other web2 providers are not easy to transfer or sell. In many cases, you’re just leasing the domain instead of buying them.

Tickets

Similarly, concert tickets and other event passes are also well suited to be represented by NFTs.

There’s a finite number of them, and access to the event requires proof.

NFTs can eliminate the problem of forgery and make it easy to verify authenticity and ownership.

NFT tickets are also tradeable on the secondary market, which unlocks a few things:

  1. Standardized marketplaces with buyer & seller protection (currently, tickets are traded on inefficient markets like FB & craigslist)
  2. Free market pricing
  3. Royalties for the original creator

4. Historical ownership data of tickets means performers can airdrop future passes, discounts, giveaways, etc to fans.

5. NFT passes can also serve as a badge to showcase your fandom.

The online ticketing market is estimated to be worth $30B+… and it’s growing fast.

A few projects I’ve seen working on NFT-based ticketing:

  • @GetProtocol
  • @SeatlabNFT
  • @YellowHeartNFT
  • @GUTStickets
  • @WicketEvents

Gaming Assets

In-game assets benefit from NFTs for many of the same reasons.

Imagine that someone spent 5 years of their life accumulating a rare in-game collectible sword, and then outgrows or quits the game. That collectible clearly has value for gamers.

The gaming industry is expected to make $200 BILLION in revenue this year, a significant portion of which comes from in-game purchases.

Royalties on secondary market trading of these gaming assets provide a strong incentive for gaming companies to create NFT based ecosystem.

But digital assets are just the beginning… Real-world assets can get much of the same value from on-chain NFT representation.

For example: Real Estate is unique, has an owner, and requires proof of ownership.

Real Estate

Tokenizing real estate has multiple benefits:

1. Can be fractionalized to increase access, liquidity

2. Can be collateralized to increase capital efficiency and access to loans backed by an on-chain asset

3. Allows investors to diversify or make bets on specific neighborhoods, towns or cities +++

I’ve written about this concept before as a thought experiment

I’ve even created an animated video explaining this concept.

So far, we’ve only discussed the benefits of NFTs for transferrable assets. But what about non-transferrable NFTs?

This is a concept that people are now calling Soul-Bound Tokens or SBTs. Vitalik Buterin (co-founder of Ethereum) wrote about this concept in his blog.

Like I said, NFTs are essentially digital certificates that anyone can verify.

Degrees & Diplomas

That lends well to use cases like Degrees & Diplomas. Of course, you wouldn’t want these to be tradable, so they can be made non-transferrable SBTs.

Having a standardized, public proof of diplomas, degrees, skills, and achievements on-chain means that anyone can verify their legitimacy.

The same is true for all other kinds of certificates or achievements.

For example: LinkedIn could give you a verified checkmark for your degree or skills.

Counterfeit Protection

In much the same way, NFTs can also be useful for Counterfeit protection.

Counterfeiting is the largest criminal enterprise in the world, estimated to be $2 TRILLION a year and growing.

So there’s a LOT of value to anti-counterfeit tech.

@ORIGYNTech is working on this, among others.

Identity

Speaking of counterfeiting, identity theft/verification is another massive real-world problem that can be solved using NFTs.

In the US, 15 million+ citizens face identity theft every year, suffering damages of over $50 billion a year.

This is not surprising at all since all you need for US identity theft is a 9-digit number that is regularly passed around in emails, documents, on the phone, etc.

🙋 How can Identity NFTs solve this problem?

  • NFTs are unique and can’t be forged.
  • NFTs provide a global standard.
  • NFTs can be easily verified.
  • Non-transferrable NFTs (SBTs) are locked to a specific wallet.
  • NFTs can be revoked in case of wallet loss or theft.

This could be one of the biggest use cases for NFTs.

Imagine a global identity standard that is standardized across countries, cannot be forged or stolen, is digital, easy to verify, and protects your private details.

And since your identity is more than just your Government ID, you would likely have multiple identity NFTs.

@0xPolygon and @civickey are working on on-chain identity, among others.

Memberships

Digital and physical memberships can also use NFTs to verify access requirements.

Voting

NFT identities can also solve problems like the verification of votes.

If you remember the 2020 US election, there’s no need to explain why this is a problem worth solving.

The simplicity of online voting can also increase voter turnout.

Intellectual Property

NFTs can also be used to protect intellectual property.

This can allow creators to earn royalties from their creations.

⚙️ NFTs have 2 key properties here:

  • Verifiability → IP ownership is clearly defined & publicly verifiable.
  • Standardization → unlocks door for platforms that let creators earn royalties from their IP.

Content Rights

Monetization without copyrighting = more opportunities for everyone.

Music is a pretty obvious use case for this.

Creators currently get screwed and earn very little from platforms like Spotify and Apple Music.

You can also read : How to Buy Real Estate Using Cryptocurrency?

Crowdfunding

NFTs can also be used by creators to crowdfund.

Investors can receive NFTs that represent rights to future royalties, for example.

This is particularly useful for fields where people who are not in the top 1% can’t make money. (Example: Professional sports players)

Mirror.xyz enables crowdfunding via blog posts.

Financial NFTs

This leads us to a broader concept of Financial NFTs (fNFTs). There are lots of financial contracts that are unique.

💰 Examples:

  • An individual’s basket of assets (unique portfolio)
  • A debt agreement with a lender that has been partially repayed
  • Time-locked tokens (ex: veCRV)

Legal Contracts

But this doesn’t have to be limited to financial contracts.

Generally speaking, any legal contract or document can benefit from NFT representation.

Emails & Messages

But why stop at legal contracts? Verbal agreements through emails and messages are also unique, but suffer as a means of verification since they are easily lost and can be forged.

Medical Records

Medical records or prescriptions are yet another example of documentation that has a high requirement for verification but lacks the proper systems for doing so.

Examples of Medical documents that can be represented through NFTs:

  • Vaccination certificates
  • Covid test results
  • Prescriptions
  • Medical conditions connected to one’s identity
  • Data tracked by health sensors

You can also read : Web3 Adoption Curve

Existing systems of proof by paper / PDF have photoshop-risk.

I tried to cover most of the use cases I could think of, but I think this barely scratches the surface.

People are finding other creative use cases for NFTs too.

For example: @ShaanVP minted an NFT called “5 Minutes of Fame” 👇

Here are 2 Twitter threads you can read to learn more about the future of NFTs:

  1. This piece of gold by @chriscantino

2. This conversation between @punk6529 and @RaoulGMI on @RealVision “The World According to @punk6529”

Finally, if you find yourself asking why NFTs are uniquely well-suited for these use cases over the existing web2 database systems, see this Twitter thread I wrote:

If you enjoyed this piece, consider sharing it with your community to spread the word.

Credit : Medium

Tokenize Your Property to Reap Fortunes Given by Web3 Tech!

Posted on by Shipra

Tokenize Your Property to Reap Fortunes Given by Web3 Tech!

Just two decades have passed in the 21st century, and we have already witnessed great levels of innovation and technological growth. While the internet revolutionized our lives for the first two decades, Web3, based on blockchain technology, is all set to turn the tables for at least the next two decades. The aspect of including more real-world applications for blockchains has been making sure that the previous statement will come true sooner than anticipated. Real estate tokenization has been one such use case of Web3 technology that has been raising many eyebrows recently. Let us see more about it as we progress.

Real Estate Tokenization: A Snippet

Real estate tokenization is where real estate properties are “tokenized” or registered as tokens on the blockchain. These tokens can be either fungible (similar to cryptocurrencies, such as Bitcoin) or non-fungible (similar to NFTs, such as CryptoPunks). The process helps real estate asset holders and people who aspire to invest in real estate property in multiple ways. Real estate tokenization today is still emerging, as there are a lot of regulations that require it to be modified to fit the new-generation process, alongside other restrictions, typically from skeptics who fear their “businesses” might die.

Read also: Real Estate Tokenization: Step-by-Step Guidance

Inherent Problems Present in Contemporary Real Estate

  • High Entry Barriers restrict most people from investing in real estate assets as prices accelerate higher and higher without particular reasons.
  • More Intermediaries tend to put the real estate sector into their hands and determine the industry’s flow according to their interests. Adding to the fire, their presence aggregates the costs involved in real estate investment.
  • While the Presence of Central Authorities might look safe (or we might have been tuned to such thoughts), having data gathered at a place is not safe at all times. With the presence of powerful intermediaries, central authorities tend to work hand in hand with those (in most cases) to safeguard their interests.
  • Finding Investors has been a huge issue since there are demographic restrictions for geographic assets that do not allow people from certain regions to purchase land in certain places. Such atypical limits, even in the era of globalization, make real estate assets illiquid.
  • The Possibility of Fraudulent Activities is higher in the current real estate sector irrespective of digitization, since power and money tend to reign ultimately, leaving unsuspecting commoners to suffer by accident. One can witness staggering numbers while researching court battles relating to real estate assets.

“Tokenize Your Property:” Whether This will Solve the Problems?

A solution that might help if you are a property holder will be to tokenize your property. This can save you from unwanted hassles and waste of valuable resources. Tokenizing your assets can also help you with finding buyers for the property, as the price cap will be economical enough for retail investors to get a hand in hot real estate assets. Also, with minimal paperwork, the documentation time taken will be lesser, enabling you to liquidate your assets faster. It will be a good idea to tokenize your assets if you are looking to raise quick funds.

Tokenize Your Assets Through These Token Types

  • Utility Tokens provide digital access rights to applications or services related to the property. These are beneficial in the case of ventures that raise funds through Security Token Offerings (STO).
  •  Equity Tokens offer shares of the real estate asset to investors, which can pay them dividends if in use through rent collected. Like traditional exchange stocks, the proportion of profits gained depends on the number of shares held by an investor.
  • Debt-like Tokens play the role of collateral for loans if borrowed from multiple people. The issuer has an obligation to pay back the loan with interest to the token holders; failing to do so will result in the loss of their property.
  • Participation Tokens can give participatory rights and revenue without dividends but with zero equity. That means that investors can gain benefits but cannot claim a stake in the underlying venture if there is a failure.
  • Crypto Tokens are popular real estate tokenization products as they offer fractionalized assets as fungible tokens that can be exchanged for other cryptocurrencies or fiat tender. These can be used as a means of payment by the asset holder.

Offering Concluding Insights

Hence, it will be wise to tokenize your property if you want to sell it or raise funds for a new business. Real estate tokenization ensures that raising funds through such assets is made easier than ever, and there are expert firms that can help you to tokenize your assets. The process typically involved smart contracts, which are blockchain-based programs that serve as proof of transactions (similar to real estate documents). Such firms will also have expert consultants who can assist you in clearing any doubts that can further augment real estate tokenization for you.

Tokenize your Property — Make it for Sale

Posted on by Shipra

Tokenize your Property — Make it for Sale

The world has now leaned towards Web3, which bases itself on empowering the end-user. While cryptocurrencies and non-fungible tokens (NFTs) opened the way for people to make money, tokenizing assets opened the avenue for investments to be made. Real estate tokenization rocked the world by surprise as it came with many advantages for the non-tech-savvy real estate sector. This blog focuses on the benefits that real estate tokenization offers to the world in the modern day.

Benefits of Real Estate Tokenization to the General World!

High Transparency

Real estate tokenization involves programming data into highly secure digital tokens. This feature would ensure complete openness between the investor and the seller, benefiting both parties. Not to mention that purchasing and selling homes will be significantly more affordable because there will be less administrative work and mediators involved in the process.

Better Liquidity

Real estate has always been a low-liquidity investment or illiquid asset. This is because of the high number of private players, the sizeable cash requirement, the extensive paperwork, and the numerous parties involved. Fortunately, real estate tokenization steps can make the process easier. It will fractionalize assets and provide investors with simple entry points, increasing the liquidity of the tokens.

Easy Property Management

Delayed monthly rent payments and lease renewal are two issues that landlords and tenants must deal with. However, the tokenization of real estate may change this. You will have the choice to enter documents into a unique database using smart tokens or contracts built on the blockchain. By doing so, you may speed up organizing loans, as well as collect rent from tenants on schedule. Overall, both sides find the token-based agreement procedure quick and effective.

Read also: A Beginner’s Guide to Real Estate Tokenization

Proof of Ownership

Intense legal disputes over land rights and ownership have frequently occurred in the real estate sector. They can end up lowering the brand’s value and costing a lot of money, which is not what anyone wants. In the case of real estate tokenization, data will be tokenized and kept on blockchain ledgers, making it impossible for anyone else to alter it. So you can begin analyzing past or present transactions once total or fractional ownership is disclosed.

Better Access to the Market

Since only those with the necessary knowledge and resources may participate in real estate investment, not everyone is able to do so. Tokenizing real estate will expand the investor base, allowing anyone with a reliable internet connection and enough money to purchase, sell, or hold real estate assets from anywhere. Since the tokens are fractionalized, selling a property as a whole is not necessary.

Final Thoughts

Hence, we can say that tokenizing real estate assets can benefit businesses and individuals alike due to the benefits discussed above. If you want to immerse yourself in such a venture, there are some real estate tokenization service providers that can assist you with their expertise. So, waste no more time and progress to start your own real estate token business to win the hearts of retail investors.

What is the Future of Crypto Real Estate?

Posted on by Shipra

What is the Future of Crypto Real Estate (1)

Are you curious about how cryptocurrency is influencing the future of real estate? Blockchain technology has impacted many industries, with bitcoin boosting financial payments, foreign exchanges, and so on, and ICOs altering stock markets, venture capital, etc. In the not-too-distant future, these markets would essentially enable sellers to tokenizing their real estate assets, in this example, a home. 

Real Estate’s Cryptocurrency Future

In the following ways, blockchain technology is altering the condition of the real estate market:

  • Smart contracts versus Traditional contracts

The typical purchasing or selling real estate method is time-consuming and requires several parties. Banks, brokers, agents, attorneys, and other professionals are typically required to finish the procedure effectively.

Real estate brokers provide consumers with several real estate possibilities based on their tastes and budget. Lawyers and lawyers assist in comprehending various contract stipulations, among other things. These intermediate companies charge fees for their services, raising the housing cost.

Buyers must ensure they have the funds to pay these middlemen and the obligatory down payment.

In the real estate market, blockchain technology is introducing smart contracts. Smart contracts are contracts that execute themselves. There are no middlemen and no lengthy communication channels.

There are no waiting periods for payments to be moved, authorized, or processed. The parties involved are alerted as soon as the buyer pays the sum in digital currency.

  • Fractional ownership in Real estate for future

Crypto Real estate assets may be tokenized using a Blockchain network. It implies that sellers or property owners may divide their assets and sell them as smaller ventures to various investors.

This notion of fractional ownership might make buying real estate considerably more affordable and accessible to everyone.

An individual may not be able to acquire a whole property due to the high cost and increasing interest rates on home loans, but they may purchase smaller shares jointly.

Investors may band together to purchase pricey houses while saving money on upkeep and rent.

  • As a liquid asset property 

Property is often seen as an illiquid asset. Because, unlike bonds and equities, they cannot be turned into cash quickly. Selling a house might take many months, and the seller may be paid in installments.

Real estate becomes a liquid asset thanks to blockchain. Real estate tokenization may assist sellers in swiftly converting their property into fiat cash.

Read more: How to Buy Real Estate Using Cryptocurrency?

Market decentralization

Market Decentralization

We have been utilizing centralized networks for nearly every operation up until now. A single central authority oversees network use in centralized networks. Examples include social networking networks such as Facebook, banking institutions, etc.

Blockchain provides a decentralized network. The data is stored on numerous computer nodes rather than just one.

A hash algorithm is used to encrypt the data. Each data block includes information from the preceding data block. A data chain is established in this manner.

If there is an incursion, the hash value is changed. The chain is broken because there is a discrepancy in the information recorded between the blocks. This notifies the whole network.

As we can see, blockchain networks for real estate tokenization, such as presenting information such as home prices, signing property contracts, making down payments on house prices, and so on, may make things safer and more transparent.

Because no other entity may access or edit blockchain data records, consumers have greater control over their data.

There are various benefits to implementing blockchain technology in real estate. Furthermore, the housing market prognosis indicates that it is not far off. 

If you, as a company leader or CTO, want to enjoy the benefits of blockchain real estate, now is an excellent moment to enter the industry, considering the high demand for housing and the growing popularity of blockchain technology.

You may create a blockchain solution for real estate companies or integrate blockchain technology into current real estate applications.

To do any of this, you will require professional software engineers who are familiar with blockchain technology. Your development team should be familiar with various blockchain platforms, how they function, and the associated development tools and frameworks.

You may simply collaborate with these qualified developers for blockchain real-estate solutions by submitting your first product specs using this form. 

Real Estate cryptocurrency marketplaces

Real Estate Cryptocurrency Marketplaces

If real estate tokenization becomes broad, it will create buying and trading real estate easier and less costly for investors. However, real estate investing has traditionally been a haven for the wealthy. Because the assets are valuable, the entry hurdles are just too high for most individuals. 

The idea of fractional ownership is introduced through tokenization. Instead of purchasing a full property, you might own a portion of many properties. Investors may also combine their funds to purchase costly houses that would otherwise be out of reach. It also relieves investors of the additional expenditures connected with acquiring property, such as upkeep and lease.

Tokenization, in effect, alters the playing field and lowers the obstacle to access for real estate investment. Still, it also furnishes an extremely alluring means to invest, incorporating real estate’s huge returns with the stock market’s liquidity. Furthermore, since genuine properties back real estate tokens, they are significantly less hazardous and volatile than cryptocurrencies.

A Future Powered by Cryptocurrency

It is typically advised that you maintain any contract documents pertaining to your house purchase for the life of the loan, ideally longer. But why wait much longer? The IRS cannot pursue you for failing to submit a tax return in any particular year since there is no statute of limitations. As a result, the IRS advises that you maintain this data permanently.

There are further problems with printed copies of crucial documents. Although it is rare, treaties may be modified or counterfeited, encouraging fraudsters to trade residences that they do not possess. Of course, although the paper is fairly resistant when appropriately conserved, it degrades fast in the incorrect environment. Unknowingly storing your paper papers in a moist garage might render them illegible for months. This may be a huge issue if you’re ever requested to make them. Deeds are also important if you have property boundary issues with your neighbors.

So, if paper documents aren’t ideal, why aren’t we keeping them entirely online today? Because, at the moment, digital solutions are often no more secure than paper, if at all. Any digital records will be housed on centralized servers in the conventional real estate system. Your deed won’t get wet or catch fire, but it may be stolen by fraudsters or lost in an IT catastrophe.

Conclusion 

The dangerous nature of paper and traditional digital storage is hastening the adoption of tokenization in real estate and other sectors. Cryptocurrency for business is fast becoming a reality, with several firms already transitioning to a blockchain-based approach to managing their data assets.

 

The Search Engines of Web3

Posted on by Shipra

 

What is the most crucial piece of Web3 infrastructure apart from the network nodes? I would argue the block explorer.

For most users of Web3, the block explorer is the interface that allows them to see the blockchain they are using. Be that the transactions created when they send cryptocurrencies or NFTs, or to see what their smart contracts are doing once running in the wild. Without them, users feel blind as to what is really happening.

It’s not just Web3 power users that make use of them. Most Web3 wallets and centralised exchanges use them to display proof that transactions have taken place. Hence if you remove the block explorers from Web3, you’re leaving users in the dark as to what’s really going on.

There are parallels with search engines here in as much as block explorers index transactions on blockchains in a similar vein to how search engines index websites. Both are used as entry points by users to find the information they want. However, is the whole analogy of search engines and block explorers simply there because of the search engines place as the primary tool we use to locate our way around the web?

Is the block explorer in its current form too much of a Web2 paradigm?

Most blockchain networks have a leading block explorer for their platform. For instance, on Ethereum it’s Etherscan, on Solana it’s Solscan. With the success of the underlying blockchain platforms, these block explorer platforms have become critical infrastructure in their own right supporting these networks. Hence if they go down, many users of these blockchain networks are left in the dark. The underlying blockchain may be fine, but if the block explorer used by a user’s wallet is unavailable, as far as the users are concerned the whole network may as well be down, as they lose visibility of what’s going on all of a sudden.

This centralisation risk is why we need to get away from the model we have now, decentralised services need to become the norm for users who wish to query any data from blockchains.

Pure decentralisation in this context can mean fully decentralised API services such as what The Graph Protocol is trying to achieve. However, as we see with the growth of centralised exchanges, we’re likely to see centralised block explorer offerings continuing to prosper. This isn’t a bad thing as long as there’s an adequate choice and a level of standardisation among these services.

For instance, members of the Ethereum community standardised API endpoints for block explorers to easily link blocks, transactions and accounts ensuring that any applications sourcing this data can use multiple potential block explorer backends.

You can also read : What are Blockchain Layers?

Unlike the singular internet or web, there are multiple public blockchains. Each one requires its own infrastructure to support its users such as node software, developer libraries and of course block explorers.

Whilst public blockchain networks really heavily on cryptography techniques to function, much of the data contained within them is not encrypted. This facilitates data provenance allowing people to easily demonstrate cryptocurrencies, tokens or NFTs that they hold. It also means that the smart contracts deployed upon them are visible to everyone.

In this current phase of adoption, this means that block explorers can easily provide a great deal of information about the data contained within. This can include metrics such as the most valuable tokens, NFT sales and various other data. This is no different to interpreting data contained on a website — it’s there for anyone to consume.

However, as the technology matures, there are two trends that are going to force block explorers to evolve. The first of these is interoperability and bridging of assets between blockchains. These could be between disparate chains or layer 2 networks.

When you have an asset that moves between different blockchain networks, you need mechanisms to track this. This is where so-called multi-chain explorers become relevant. It’s going to be much harder to track an asset moving from one blockchain to another if there’s not a seamless experience where users can jump between views of blockchain transactions residing on different blockchains from one location. The last thing they’re going to want to have to do is to bring up two different blockchain explorers and compare hexadecimal strings.

There are examples of bridges being supported in block explorers, but no good solutions to the multi-chain view of the world exist currently.

The other trend that is likely to have a significant impact is the evolution of privacy technology. It’s unclear at the current time what the happy medium of the right amount of privacy on blockchains is. However, generally speaking, the more privacy, the better it is for the end-user and businesses who want to protect their IP.

You can also read : How is Blockchain Linked with the Real Estate Industry?

With privacy in place, the amount of information that can be conveyed by the current generation of block explorers drops significantly. Only those individuals involved with specific transactions will be able to make sense of them. I think of this as equivalent to having encrypted websites, where the only people who can view them are those who have been permissioned to do so cryptographically.

This isn’t a bad thing, but it will create some challenges for the current breed of block explorers. To address this perhaps more localised block explorer instances will become the norm that are permissioned for specific groups of companies or individuals. Or maybe the existing platforms will evolve to provide mechanisms for users to consume data via a token associated with keys they own.

The exact approach remains to be seen, but we’ll no doubt see solutions starting to emerge in the coming months. With this additional perspective, whilst the current breed of block explorers could be considered the search engines of Web3, this narrative may not be the aptest for the long term.

After all, unlike websites, the data contained within public blockchain networks is likely to become private over time, and there are going to be a lot of discrete networks that data will need to be aggregated across by users.

Hence whilst right now block explorers are the search engines of Web3, it’s likely that more of the data flowing through blockchain networks will start to look like encrypted data packets, as we see flowing around the web currently, and the utility of an explorer for this use case is somewhat limited.

Users of the web don’t pay attention to the individual packets of data flowing around the internet, and whilst the ability to see transaction identifiers on blockchains will remain relevant, as more and more abstractions are built on these public ledgers, explorers are likely to become diagnostic tools for the technically inclined folk who need to understand what’s actually happening under the hood.

Other than centralised services, the entry point for many users will be via their wallets. Locating the services most applicable to them is unlikely to be via a block explorer. There will likely be new types of directory services built to cater for these needs which still need to be built out for Web3.

Have any questions or comments? We’d love to hear from you! If you want to find out more about blockchain, its growth, and newest developments, then check our blog or listen to our enlightening Web3 Innovators podcast.

Credit : Medium

WEB3 VS METAVERSE

Posted on by Shipra

WEB3 VS METAVERSE

  • They are built on similar technology; they both use AI(Artificial Intelligence) for advanced user interface and also semantic web
  • They are both in the early stages
  • They both evolve with changes in blockchain technology

You can also read : How is Blockchain Linked with the Real Estate Industry?

  • OBJECTIVE; web3 objective is to create a decentralized and democratic internet while metaverse wants to establish an interactive 3D reality for users’ effortless and realistic interactions.
  • APPLICATION; Web 3.0 is the process engine that uses the blockchain’s advances while metaverse uses web3 advances to function properly and grant access to users.
  • OWNERSHIP BATTLE; the goal of web3 is to make the internet a public-controlled property, an example is BTC, while the goal of a metaverse is to facilitate full ownership of one’s intellectual property
  • PERCEPTION OF REALITY; Web 3.0 is primarily concerned with who will rule and govern the internet in the future(this is because they want the people to rule), and the Metaverse is concerned with how users will interact with it.
  • APPLICATION; web3 has applications like Bitcoin(the first and largest cryptocurrency), Apple siri, and Opensea, while metaverse has features like online shopping, NFT, and video games.

You can also read : Can Life Exist on the Blockchain?

How to Buy Real Estate Using Cryptocurrency?

Posted on by Shipra

 

How to Buy Real Estate Using Cryptocurrency (1)

Before diving into how do you know that you can Buy a House with Cryptocurrency? Yes, this whole Bitcoin-meets-penthouse is undoubtedly real. Cryptocurrency is quickly escalating as the new preferred peer-to-peer payment method. Many favorable investors want cryptocurrency to become a mainstream asset. And sure, it looks that way; everything will soon be bought via virtual currency, from parking spots to high-end mansions.

According to the famous US magazine Business Insider, in 2018, luxury apartments were sold in exchange for cryptocurrency. Several real estate developers express their desire to sell their properties for cryptocurrency; this is especially popular among online brokers(buyers, sellers, and investors)

For example, global real estate firms such as Kuper Sotheby’s International Realty and Glen Oaks Escrow of the Pango Group started using bitcoin for real estate transactions in 2017 and 2021, respectively. If one searches for examples of such real estate properties, Madinat Jumeirah Living and Port De La Mer Le Ciel are among the top.

So how can you buy properties with cryptocurrency?

There are two different options for real estate and doing transactions & buying properties with cryptocurrency.

The first option is Bitcoin- USD real estate transaction. 

This option implies that a seller wants to trade only with dollars, not bitcoin. Hence, in this case, you can exchange your cryptocurrency for cash and pay as required.

Next option is All-Bitcoin real estate transaction 

Here, the seller is willing to accept bitcoin. So, the purchaser will transfer the Bitcoin from his digital wallet to the seller. Thus, in this case, you can negotiate the price and freely pay with your Bitcoin.

Regarding real estate transactions, Bitcoin rules over every other cryptocurrency. It can be and already is an alternative to standard, long-established real money. Due to its wide reception and integration, many states have equipped an online payment system or the property you buy at its expense with a digital property or a commodity.

You can also borrow against cryptocurrency. For instance, companies like Nexo accept using your cryptocurrency as security/assurance to obtain a loan in authorized money, which you can use to buy real estate. However, it’s just that you might encounter higher interest rates than you would with a typical mortgage (8% or more. And there can be issues with the IRS flagging your account when a big chunk of money appears. On the plus side, if you want to use your cryptocurrency as a long-term investment, it will remain in your account, and its value can continue to follow the market trends. 

Read more: A Beginner’s Guide to Real Estate Tokenization

Real estate transactions, even via crypto, aren’t a tax-free procedure so have a proper legal and tax structure in place. Go for title insurance and escrow companies that handle cryptocurrency transactions and don’t just focus on cash. If you find these, the transaction will be in Bitcoin or Ethereum.

Get a more secure asset as bitcoin is highly volatile; the value can drop more than what you paid for it. Or it could also become more valuable. There are daily fluctuations, so opting for a relatively secure asset is crucial. Find a seller with cryptocurrency; chances are they might also offer you a potential discount. 

To sum up, the answer to whether you can buy a house with cryptocurrency is a yes, as long as you can find sellers open to cryptocurrencies. The most glaring drawback when purchasing real estate with cryptocurrency is that people still know little about virtual currency. This payment method has only recently come to light. So there is no wonder people feel nervous making payments with cash they don’t understand. Difficulties with finding a seller

Finding someone who can accept Bitcoin might not be easy if you would like to trade your crypto for a house. You know, this is not about traditional home listing sites. The path will not be so easy.

Some sellers will indicate that they are crypto-friendly. But these are rather exceptions. For cryptocurrency users, security and anonymity are two of its main selling points. However, transactions are difficult to trace, so you could face a sticky legal situation if anything goes wrong. A legal professional needs to be consulted to know how to protect yourself. Also, consult a tax professional to learn about your tax liability and how using cryptocurrency to acquire a home may affect you because the IRS considers cryptocurrency a type of property that must be sold to realize its value in dollars. Having said that, 

Closing remarks

Cryptocurrency deals are legit, legal, enforceable, efficient, and here to stay. While not everyone can be a “Bitcoin billionaire” like Pierce, you can convert your cryptocurrency into real estate. Cryptocurrencies are disrupting several industries, and real estate is one of them. The possibility of these spectacular gains that can earn you a huge fortune is the most exciting quality of the cryptocurrency world. It goes without saying that the first fundamental thing one needs to do before any investment or trading is – research. Get an estimate of the risks involved, and avoid investing in the project if the stakes are too high. The cryptocurrency community is putting its best efforts into regulating token sales. You must conduct due diligence and take the help of useful resources and guides such as crypto exchange guides and wallet guides. All this will help you start your journey in the complex crypto world.

Tokenizing Real Estate with Blockchain

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Tokenizing Real Estate with Blockchain

Blockchain technologies seem to have a solution to most problems, even if the problem is that I need to sell my house fast. The merger between blockchain and tokenizing real estate promises to simplify and cheapen the process of buying and selling property. This process traditionally involves a sleuth of entities who each take a cut from the deal made between the buyer and seller. The bank, broker, seller, buyer, and local government all are involved in this process, and currently, any real estate transaction requires heaps of paperwork and hours of coordination between these entities and individuals.

A seller could, if unwilling to pay these fees, list their property for sale by owner (FSBO), but then she doesn’t have access to the MLS (multiple listing service) that real estate agents use to search for the property when they have a new buyer. Notoriously, the MLS is fragmented, walled off, and complex, so navigating it as a seller is a daunting task. However, transferring these property listings to a blockchain would mean opening up access to all the available properties for anyone to review. With each listing, the seller could advertise the price of their property as well as any terms and conditions which need to be met upon purchasing.

Read also: Get ready to start tokenizing your real estate assets-Real estate tokenization on board

How is the property secured financially and contractually? Smart contracts. Smart contracts are becoming popular, but they are far from being the standard method of finalizing contractual agreements. They are the same as paper contracts, however, they are digital. The difference is in how they are implemented and who is involved. Let’s take the platform Kickstarter as an example to demonstrate the difference between paper and smart contracts. Kickstarter is a platform through which product teams can request funding from supporters for their newly-developed products, or products in the making. The platform acts as an intermediary between these supporters and product teams, meaning that both sides have to trust Kickstarter to manage their money safely. If the product teams manage to have their projects successfully funded, they expect Kickstarter to give them their money; on the other hand, supporters want their money to go to the project when it is funded, or get a refund when it hasn’t reached its goals.

Essentially, both sides have to trust Kickstarter if they want to succeed. This opens up each of them to counterparty risk. Smart contracts provide a similar system to facilitate this exchange without third-party risk. Returning to the real estate example above, if a seller wishes to advertise their property, we can program a smart contract to facilitate the transaction online. The smart contract is programmed with the seller’s price and other criteria, and only upon the meeting of those criteria can their property be sold. So why should we trust a smart contract? Because smart contracts are located on a blockchain, they are immutable and distributed. Once a smart contract is created, it can never be changed again; and being distributed means that the output of your contract is validated by everyone on the network. If a bad actor decides to tamper with the contract, everyone else on the network is a witness and can invalidate them.

So, seeing as any real estate transaction requires so much paperwork in the form of deeds, contracts, tax records, and other documents required for making the sale, smart contracts could facilitate these transactions more securely and faster. Furthermore, smart contracts could take care of any ongoing real estate transactions such as rental agreements and home warranties, simplifying the process even more.

Another exciting idea within real estate smart contracts is the ability to fractionally own properties. As the owner of an apartment building, you can program the smart contract that facilitated its sale to invite investors to purchase shares within the building. These new owners now own a share of the property which they can sell at any time, through the same smart contract.

Traditionally, real estate has been concerned with listings, to connect buyers and sellers. However, blockchain and smart contracts are introducing new ways to purchase real estate: real estate can now be tokenized, allowing the sale of properties to be handled like a stock sale on an exchange. Real estate has long been thought of as highly illiquid due to the time it takes for sales to be finalized. However, tokenizing properties opens up the market to more liquidity: properties (or fractions of properties) in the form of tokens can be readily traded on fiat exchanges, increasing their liquidity.

Buying and selling property is time-consuming, risky, complex, and expensive. Solutions on blockchain will save time and money by releasing the resources currently used for registration and settlement. With blockchain and smart contracts, there is hope that these drawbacks will be mitigated.

Top 20 Real Estate Startups using Blockchain

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Top 20 Blockchain Based Real Estate Startups

Blockchain technology’s inherent system of trust makes it absolutely perfect for real estate. It is precisely the reason why several estate companies have started to incorporate blockchain technology into their business. Real estate companies all around the world are using blockchain’s smart contracts & distributed ledger capabilities to transparently as well as efficiently facilitate buying, renting, investing, and even lending.

The demand for blockchain services in the real estate sector has dramatically risen over the past few years, which is exactly why there has been a rise in the number of blockchain-based startups in the field of real estate. So, it will be a very good idea to have a look at the top 20 blockchain-based startups in the field of real estate.  

1.  Propy Inc.

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Propy is a Silicon Valley leader in real estate transactions and offers management for brokers and agents. We cover the entire transaction process securely and simply, from offer to close. Brokerages across the country trust Propy SaaS platform for our automated notifications, e-signature, analytics, and compliance tracking to ensure that property deals are closed quicker, easier, and cheaper.

2.  Harbor Inc

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Harbor is a digital investment management platform for alternative assets that streamlines onboarding and subscription processing, simplifies investor communications, and unlocks enhanced liquidity options through branded private marketplaces. Harbor’s easy-to-use software enables issuers and broker-dealers to remove friction and inefficiencies from the fundraising process and ongoing investor and placement agent management. 

3.  ShelterZoom

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ShelterZoom launched an industry-first, blockchain-based real estate online offer and acceptance platform to enable buyers and buyer agents to submit offers from any online real estate listing website instantly. Since then ShelterZoom has built an end-to-end product suite enabling secure transaction management and the first email extension to tokenize attachments, allowing senders to revoke download and share permissions to their files even after they have pressed Send.

4.  UBITQUITY 

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UBITQUITY offers a simple user experience for securely recording, tracking, and transferring deeds with our SaaS blockchain platform. We are helping financial institutions, title, and mortgage companies benefit from reduced title search time, increased confidence, and transparency.

5.  Blocksquare

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Blocksquare, real estate companies can create and offer tokenized real estate investment deals directly on their websites. According to Blocksquare CEO Denis Petrovcic, tokenized blockchain for real estate tears down the financial barriers between investors and properties. Blocksquare’s tokenization model allows selling a real estate asset to up to 100 buyers.

6.  ATLANT

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ATLANT is addressing two of the most pertinent problems in real estate with its decentralized blockchain platform: Tokenized Ownership and global P2P Rentals. Everybody can buy or sell even the smallest part of the property by buying or selling the corresponding PTO tokens.

7.  CPROP

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CPROP is a blockchain-based real estate transaction management system that allows the buyer, seller, and their respective service providers to transparently and securely close real estate deals. The platform promises to clearly display each step of the entire transaction process, accompanied by information about all required documents to complete the transaction.

8.  SMARTRealty

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SMARTRealty applies smart contract technology to everyday real estate transactions such as rental, purchase, and sale. Two parties conclude a real estate sales, purchase, or rental agreement via the SmartRealty platform by using smart contract technology. The agreement includes all necessary terms and conditions, such as payment dates and amounts, the validity period of the agreement, penalties, termination, etc

9.  Imbrex

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Imbrex connects vendors, buyers, and agents over a powerful open network that rewards you for your contributions. Imbrex combines three innovative technologies – The Blockchain, Data Distribution, and Digital Currencies – to create the world’s most advanced Global Real Estate Listing Service. And it’s completely free.

Instead of money, imbrex uses a digital currency, the Imbrex token, which enables frictionless transactions. Users are paid in imbrex tokens to list properties or provide market data, and tokens can be exchanged within the platform for features and services.

10.  Blocknative

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Blocknative is a real-time Web3 infrastructure company, that enables dynamic user experiences and better decisions via pre-chain insights. Blocknative democratizes access to Memolo data across multiple chains, including Ethereum, xDai, Polygon, Binance Smart Chain, and Bitcoin, empowering users to see what is happening and what will happen next on public blockchain networks.

11.  Everyrealm Inc.

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Everyrealm is building the gateway to the entire metaverse ecosystem. Their mission is to become the leading and most trusted metaverse & NFT innovation and investment platform by building or buying companies in order to grow.

12.  Rex  

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Rex is a technology, investment, and real estate company whose mission is to empower the billions of people who use real estate to work, play, and call home. Rex has launched Tech Ventures Real Estate (TVRE), a venture to disrupt real estate – the world’s largest asset class. TVRE leverages Rex’s access to 10k+ apartments, an in-house startup studio, and an elite tech team that conceives of launches, and scales revenue-generating businesses at an industry-leading pace. 

13.  RealBlocks

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RealBlocks has built an advanced alternative investment experience for fund managers and their investors worldwide through its online platform. RealBlocks is a pioneer in using Web3 Blockchain Technology to offer a fully digital, white-label solution for today’s fund managers wishing to expand their firm’s investor base by allowing them to offer more funds in more locations with lower investor minimums.

14.  RealtyBits

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RealtyBits is a Y-Combinator-backed finance platform powered by blockchain. Their goal is to create a decentralized platform for investors to purchase commercial properties, and to open up investment in American real estate assets to global investors. By enabling real estate funds to raise capital through cryptocurrency investments, they hope to lower the costs of investing in commercial real estate.

15.  Global REIT

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Global REIT is modeled after the Real Estate Investment Trust (REIT), a popular real estate investment tool. Global REIT plans to leverage blockchain to pay investors in their REIT token dividends, increasing the liquidity of their investments. By tokenizing a successful investment vehicle, they can provide investors new to crypto with a more stable and liquid asset.

16.  Nobul

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Nobul is the world’s first and only technology-driven real estate marketplace where every agent, from every brokerage, can compete for the consumer’s business. They deliver consumer choice, agent accountability, and overall real estate transparency.       

17.  The Bee Token

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Beenest is a part of the growing movement of home-sharing platforms like Airbnb working to decentralize home sharing and make it more egalitarian for both homeowners and renters. They leverage their token, The Bee Token, to facilitate transactions on the platform. 

18.  Wealth Migrate

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Wealth Migrate is a digital marketplace for real estate that allows investors to crowdfund different real estate assets. Their wealth coin will help facilitate transactions on their recent blockchain integrations to the platform.

19.  Meridio

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Meridio is a platform to create, manage, and trade fractional ownership shares in real estate assets. Investors gain access to a variety of properties with greater liquidity and lower capital requirements than traditional real estate investing. Asset owners and investors benefit from the easy-to-use web application that houses property dashboards, due diligence, and peer-to-peer trades. Their mission is to make real estate investing simple and accessible to all.

20.  SwissRealCoin 

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SwissRealCoin is the flagship project of Crypto Real Estate. It is a token closely linked to Swiss Commercial Real Estate, and its value is tied to real-world assets. Their primary goal is to automate the management of real estate assets through digital platforms powered by their token.

Closing Thoughts

All the startups mentioned have made significant contributions to the real estate sector by making effective use of the potential of blockchain technology. However, the fullest potential of blockchain technology in the real estate sector has not yet been utilized, but it is expected that better utilization will take place in the time to come.

Tokenized Real Estate: Creating New Investing And Financing Channels Through Blockchain

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Tokenized Real Estate: Creating New Investing And Financing Channels Through Blockchain

In 2018, New York City-based asset management firm Elevated Returns completed a tokenized real estate offering for $18 million on the Ethereum blockchain. The asset was the St. Regis Resort in Aspen, Colorado. The high-profile property and the employment of an unusual fundraising method caught the attention of investors, fintech enthusiasts, and blockchain communities. Not long after, a new 12-unit development valued at over $30 million was the first in Manhattan to be tokenized. Tokenization on a very broad level is similar to creating shares in a company. However, one of the key benefits of tokenizing is the ability to create partial ownership of an illiquid asset such as real estate. The art world has also taken notice. In the latter half of 2018, 31.6% of ownership shares on a renowned Andy Warhol painting (valued at $5.6 million) were tokenized and auctioned on the Ethereum blockchain. Tokenizing can open new doors for investors who are otherwise unable to invest in alternative assets due to high minimum thresholds while providing liquidity to owners and developers.

Tokenizing is the process of creating a fractional ownership interest on an asset (utility or security) with a token that is blockchain-based. Where:

A blockchain is essentially a distributed database of records or a public ledger of all transactions or digital events that have been executed and shared among participating parties. Each transaction in the public ledger is verified by the consensus of a majority of the participants in the system. Once entered, information can never be erased. The blockchain contains a certain and verifiable record of every single transaction ever made.

Read also: Real Estate Tokenization: Step-by-Step Guidance

Coupled with the blockchain’s transparency and unalterable framework across the network, a tokenized sale is embedded with a smart contract, a digital cryptographic code that will execute exactly as it was set up by the creators (Hertig, 2019). The ownership interest represented by the token dictates the value of the token. In real estate, a token can represent a variety of ownership interests including ownership of a physical asset, an interest in the debt secured by real estate, equity in a legal structure that owns the real estate, or a cash flow stream from the asset.

Tokenized Real Estate Cases

To illustrate how tokenizing can be structured in real estate, a brief overview of The St. Regis Aspen Resort may be helpful. Elevated Returns, owner of the resort, originally planned to sell up to half the property as a single asset REIT in an IPO on the New York Stock Exchange. However, the company decided instead to offer 18.9% ownership through token sales. The sale was made through the digital platform Indiegogo and a partnership with Templum Markets LLC, a FINRA and SEC-registered broker. Aspen Coins were created (tokens), which represent a share of the company Aspen Digital, the entity owning 18.9% of the St. Regis Aspen Resort. According to a spokesperson for Elevated Returns:

Essentially you have the best of both worlds with a REIT structure in place and blockchain technology with a smart contract for St. Regis Aspen. The REIT provides tax efficient structure while the blockchain provides peer-to-peer investing and cross-border transaction made simpler for investors.” 

Aspen Coins were priced at $1 per coin and all investors were required to be accredited investors with a minimum purchase of 10,000 tokens. The coins could be purchased in U.S. dollars, Bitcoin, or Ether.

Read also: How is Blockchain Linked with the Real Estate Industry?

In the case of the tokenized condo development in Manhattan, the developer worked with Fluidity, a company that specializes in tokenization, and Propellr, a management and servicing platform for digitally held assets to launch token sales. The project itself was originally funded by traditional construction debt, but as the term limit was expiring, the developer turned to tokenization to raise capital. According to the developer and his team, tokenizing would enable more investors to purchase a stake in the Manhattan property and create the cash flow needed for the development without the pressures of a bank loan. The tokenization of real estate marks a new shift in real estate investment where numerous buyers are able to purchase portions of a property while controlling interests are able to maintain managing rights.

What does tokenizing mean for real estate investors?

In addition to creating fractional ownership of an asset, tokenization can create liquidity for the investor. Traditionally, real estate investment required capital lock-in for an extended period of time. With tokenization, shares in real estate can become more liquid and create access to global capital. Tokenizing allows smaller carve-outs of an asset that are then sold, creating more liquidity for majority-share owners and developers. Whereas traditional exchanges are limited to more regional investors during local opening hours, tokens can be traded at any time across borders. However, how lawmakers will regulate these exchanges has yet to be seen. Nevertheless, tokenized real estate is spreading internationally as companies like Elevated Returns recently acquired 21% ownership of Bangkok-based Seamco Securities (BKK: ZMICO), obtaining distribution capability and regulatory licenses in Thailand and other South East Asian regions. The company announced plans to tokenize 1 billion USD of real estate in its pipeline (Elevated Returns; Securitize; Tocqueville Group, 2019). Trading volumes may be limited due to smaller market caps, a limit on the number of holders (as is the case with REITs), and a large number of tokens available if the practice becomes more widespread.

Security and Investor Management

Investor knowledge and comfort around the security and inner workings of tokenization remain formidable hurdles for the mainstream adoption of this investment medium. Blockchains are essentially traceable public ledgers for stakeholders within a blockchain network. These qualities allow transparent tracking of tokens from owner to owner. The transaction process for a real estate asset in the form of token transfers cuts through much of the traditional transaction complexity and has a publicly auditable history. Incorporating smart contracts into the transaction process can create automated protocols that are in compliance with relevant regulations. Due to failures of smart contracts in the past and the unfamiliarity of the general investing public with blockchain transactions, tokenization is still far from being a perfect or even a trusted procedure for most institutions and investors.

Challenges and Considerations

Aside from the volatility and uncertainty surrounding blockchain-based systems, real estate tokens are still far from being a democratized investment solution. Headline real estate deals such as the St. Regis sale discussed above still require participants to be accredited investors (United States Securities and Exchange Commission, 2019). For an individual, this means an earned income of $200,000 (or $300,000 together with a spouse) in each of the prior two years or a net worth of over $1 million excluding the value of the individual’s primary residence. While wider adoption of tokenized real estate appears promising, it remains to be seen whether tokenized real estate will be available to retail (non-accredited) investors.

REITs are still a more accessible option for most retail investors. With several clicks of a mouse or phone, shares in a REIT can be easily purchased. However, whereas publicly traded REITs are a portfolio of assets, tokenized real estate provides an option for a more granular investment in a specific asset or within the capital stack linked to a particular property. Furthermore, token exchange platforms could develop in the future, creating accessibility and public adoption similar to web/ app-based investment companies Robinhood and Stash challenging traditional investment, brokerage models. The development of indices for tokens could be an important next step in expanding the adoption of tokenized assets.

Read also: Real Estate Tokenization – Benefits, Challenges and Future

Tokenization might also create disclosure challenges. The accessibility to a ledger by participants and the potential frequency of token ownership changes may deter developers who do not want information shared with competitors. Some of these issues may be addressed through the development of a secure system where information is not fully decentralized and via structures within the blockchain that allow only certain information to be shared with participants (i.e. permission blocks). Tokenizing has a promising future in real estate investment. It may create more incentives for continued adoption by developers and asset managers, such as increased access to global capital and liquidity rather than traditional institutional loans. For both individual and institutional investors, the benefits of tokenized assets have collected strong supporters and may become a viable alternative investment vehicle in the coming years.

Blog Credits: Cornell Real Estate Review

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