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How is Blockchain Linked with the Real Estate Industry?

Posted on by Shipra

How is Blockchain Linked with the Real Estate Industry

With the emergence of blockchain technology, new potential for real estate blockchain transactions has emerged. Blockchain may assist in the real estate purchasing and selling process. This is eligible to search and browse a property’s record and ownership. Sellers are more open about the selling process.

Real estate tokenizations may be administered quicker and with trivial paperwork utilizing blockchain. This is because blockchain facilitates the digital transfer of purchases, excluding the necessity for paper agreements or supplementary physical information. Everything can be accomplished electronically, which conserves a substantial percentage of the time. The additional benefit of blockchain is its increased level of security and protection. Each transaction and agreement is documented on an administered record and cannot be modified or obliterated. This shows customers and dealers assurance that their transaction is safe and protected.

Six ways blockchain has impacted the real estate business

The real estate industry is not immune to blockchain disruption. Previously, only high-value assets, such as real estate, were traded on digital platforms. Real estate transactions are often done offline, with many companies interacting face-to-face. Blockchain, on the other hand, has enabled this to be changed. Purchases such as real estate may presently be exchanged in the exact way that cryptocurrencies such as Bitcoin can, with appreciation to the inclusion of smart contracts in blockchain networks.

This method of tokenization of real estate using blockchain technology differs. Here are six ways blockchain has transformed the real estate industry.

  • There are no middlemen

Attorneys, dealers, and banks have long been an element of the real estate enterprise. According to a survey, blockchain might alter their obligations and interest in real estate agreements shortly.

New platforms may ultimately take on a listing, payment, and legal paperwork services. By eradicating mediators, consumers and brokers will obtain extra for their capital since they would conserve commissions and payments imposed by these middlemen. This also makes the procedure rapid since these intermediaries are abolished.

  • Marketplaces and outlets

Formerly, real estate technology has been concentrated on listing properties and associating with consumers and dealers. On the other hand, blockchain provides new methods to exchange real estate and may allow trading platforms and online markets to improve real estate transaction efficiency. For example, a platform was created that leverages blockchain technology to streamline real estate transactions, rental property transactions, and tokenized property. Real estate assets may now be exchanged on an exchange like stocks, and transactions can be completed online, thanks to real estate tokenisation.

It enables sellers to tokenized property and assets, thereby treating the transaction as a stock sale and liquidating the asset on the platform via a token sale. The collected tokens may be swapped for fiat currency, with purchasers gaining ownership of a share of the property.

Read more: What You Need to Know About Investing in Tokenized Real Estate

  • Holding in Parts

Blockchain curtails the impediments to real estate undertaking by enabling fractional holding. Typically, large sums of money are required upfront to buy property. Investors may integrate their reserves to purchase larger-ticket buildings. Investors would require opening a trading software to acquire and negotiate percentages of tokens as they see reasonable utilisation on the blockchain.

Expenditure payments may mount up rapidly, and handling with occupants can be problematic. This also impacts allied businesses such as lending, as property owners are often required to put their properties up as collateral for loans to have rapid access to cash. Estate proprietors may also resume wielding their property, depending on the situation.

  • Liquidity

Transactions of real estate take some interval of time. It has been perceived as an illiquid possession with cryptocurrencies and tokens. Real estate may be exchanged as property tokenization.

  • Expenditures

The clarity furnished by a decentralised system may also assist in curtailing the fees implicated with real estate pacts. Aside from the savings recognized by abolishing intermediaries’ expenses and commissions, there are extra costs involved with real estates, such as inquiries, lending taxes, and other taxes. Negotiators may be lessened or eliminated from the equation as platforms incorporate these undertakings.

Global real estate is worth hundreds of billions of dollars, yet the affluent and major businesses control it. More people may be prepared to join the market as an outcome of blockchain technology, where transactions may be rendered more translucent, protected, and proportional. Real estate transactions might evolve peer-to-peer, with blockchain-powered strategies performing the bulk of the business.

  • Decentralization

All counterparts in the system may perceive the data documented on the blockchain, rendering data transparent and inflexible. One simply has to go back to the 2008 housing bubble meltdown to understand how institutions’ greed and lack of openness may have disastrous effects. The mechanism of trust is embedded into a decentralized exchange. Consumers and dealers might feel more optimistic about enforcing marketing since counterparts can ascertain data. Attempts at fraud would also be reduced. Smart contracts are becoming admissible with the passage of laws in Vermont and Arizona. As a result, smart contracts would have more enforceability in addition to the technology itself.

Blockchain modifying real estate

Provided the turmoil of monetary assistance and its substantial application across regions, it’s tough to comprehend an area that hasn’t been reached by blockchain.

The probability that blockchain technology to modify the real estate area has a huge possibility. Blockchain-based solutions and findings can streamline the total real estate transaction procedure from beginning to end. They can assist consumers and dealers uncover one another more skillfully and propose a stable, translucent and protected platform for all groups to pursue the progress of a contract or agreement.

Conclusion

Again, blockchain-based systems may one day permit fractional ownership of real estate assets, allowing a broader spectrum of individuals to participate in a property. This might contribute fresh investment alternatives and assist in democratizing the market. Of doubt, blockchain technology will take some time to embrace and incorporate into the real estate market completely. However, as more people recognise real estate blockchain’s potential, we think it will begin to revolutionise how we purchase, sell, and invest in real estate.

 

Real Estate Tokenization: Step-by-Step Guidance

Posted on by Shipra

 

Real Estate Tokenization: Step-by-Step Guidance

Tokenization as a form of asset securitization is recommended to carry out in order to enhance traditional schemes applied for real estate tokenization and construction project financing. It increases the liquidity of large expensive real estate objects by way of selling them as smaller lots. As a rule, real estate assets and objects under construction, which physically cannot be split and sold in smaller parts and which already generate or will generate in the future predictable cash flow are being securitized. This cash flow constitutes a return on investment and is primarily of interest to investors.

There are two common securitization scenarios:

  • Construction project financing: The securitization vehicle issues securities (debt instruments or certificates) and uses the proceeds of such issuance to invest in a specific development project with the objective of selling this project in the relatively near future (usually within three years). The securitization vehicle will receive the proceeds of the sale of the project over the coming three years or upon completion and will pay an income to the security holders either based on fixed interest or variable interest or a combination of both.

Sample case: Clif ord Capital, a Singapore government-backed infrastructure financier, has launched Asia’s first securitization of project finance loans, sourced from five commercial banks. The portfolio, worth US$458mn, comprises 37 infrastructure loans, covering 30 projects spread across 16 Asian and Middle Eastern countries. They have been bundled into three notes and are to be listed on the Singapore Exchange. The notes were issued by Bayfront Infrastructure Capital, a company-sponsored by Clif ord Capital. The projects are at a range of stages, with 75.6% being operational with “stable and predictable cash flows” and the remaining 24.4% at the advanced construction stage.

  • Existing real-estate object financing: Existing real estate can be bought or refinanced using securitization vehicles. This is usually done in order to replace bank financing if existing credit. lines are needed for new projects. The proceeds from rental payments generate an income stream for investors. Again, the relatively stable coupon associated with this type of financing can be attractive to investors.

Read also: What You Need to Know About Investing in Tokenized Real Estate

Sample case: In 1999, the Peel Group replaced bank debt and provided itself with liquidity in a way of Traf ord Centre Real Estate Securitization. They provided investors with an attractive opportunity to buy securitized papers from one of the UK’s premier shopping centers. Traf ord Centre was a developed site located in an excellent catchment area, and before the transaction commenced 98% of its space was already let out through long-term lease contracts to a broad mix of well-known retailers. The structure was a two-tier debt financing structure that was secured by the rental cash flows of the property.

The overall structure of the transaction

There is a commonly accepted step-by-step scenario of securitization, illustrated further. This scenario is viewed from the point of view of an Arranger. This scenario can be altered at the customer’s discretion though reflects accumulated average market experience.

1. Allocation of an asset

An asset securitization transaction begins with the asset itself (in our case, real estate), which is owned by the Originator on a recourse basis. A securitized asset must not be burdened and must be alienated unhindered. If the asset is a pledge on a loan, then this loan must be transferred along with the asset.

Securitization may be carried out according to an irrevocable scenario with the transfer of control over the object. In this case, the asset is sold in trust, and shares in this trust are offered to investors as Asset-Backed Security. Alternatively, the scenario may be revocable without transferring control of the asset. In this case, the asset is sold to LLC or another company, which in turn issues debt securities, secured by the acquired asset. The bond coupon is paid from the rental income of the property, and repayment of the principal is done through the sale of the asset.

2. Initiation

The Originator of the asset engages and assigns a company in charge of putting the transaction together. It is called the Arranger/Sponsor. Typically, this role is occupied by an investment bank, although in the case of digital securities only a few companies offer deal arrangement services. The transaction Arranger creates a special company, SPV, which will act as a custodian of the asset

3. Creating an SPV

SPV is set up specifically for this purpose and is not involved in any other transactions. The sole purpose of its creation is the acquisition of a group of assets and their refinancing by issuing securities in the capital market.

Securitization transactions imply the transfer of control over an asset and the use of trust or fund structures as common legal forms for SPV. They heavily implement the economic function of independent management of an asset in the interests of a group of beneficiaries. A Trustee, in this case, is appointed by the Transaction Sponsor. Conversely, transactions looking for retaining control over an asset, require SPV corporate forms of companies like LLCs, exempted companies, etc. The deal Originator creates it with minor equity and keeps control over an asset all the time.

Read also: Importance Of Tokenization Of Assets

Tax, political, and economically neutral jurisdiction is usually chosen for SPV localization. Offshore jurisdictions like the Cayman Islands are frequent choices as there is no taxation on “exempted” companies and regulations are tailored to the needs.

4. Selling an asset

In this step, the asset Originator sells the asset/group of assets to a newly created SPV with a complete non-recourse transfer of ownership. It is important that in the case of Originator’s bankruptcy, the sale transaction was recognized as a “True sale” and the asset sold was completely isolated in legal and physical terms from the Originator. Settling this issue will create the so-called bankruptcy remote and will protect SPV investors in adverse situations. Such protection increases the credibility of securities and raises their potential rating.

5. Securities/tokens issuance

Further, SPV issues securities/tokens in an amount comparable to the value of the asset for its refinancing and settlement with the Originator. Those securities may be stocks, bonds, PNP participation notes, shares in a trust, etc. Usually, a consortium of banks is directly involved in issuing and placing such securities, but technically the SPV company is able to carry out issuance either itself or with the help of consultants. Referring to the technology-neutral European legislation and absence of regulations in Caymanian one, the issuer assumes full responsibility for the issuance of tokens, their legal binding to issued securities, technical administration, securing and operational support of transactions, as well as tailoring the offering documents to needs of digital tokenization. In a legal aspect, the regulator will qualify tokens equivalently to issued securities.

6. Credit Enhancement

Issued securities may undergo the process of credit rating assessment by rating agencies and then be offered on the capital market. Obviously, being awarded the securities credit rating makes a crucial choice factor for institutional and professional investors. Also, the rating can be improved by a set of preliminary measures called Credit enhancement such as loan agreements, guarantee letters of an Originator, keeping some cash in reserve fund within SPV, diverse insurance protection, and so on.

Implementation of Credit enhancement measures is optional and their scope and scale are determined by the Arranger in the context of reaching the best result for securities sale. In the basic scenario, they may not be carried out at all.

7. Credit rating evaluation

To increase the interest of potential investors in the issued ABS (Asset-Backed Securities), it is highly desirable to undergo evaluation by one of the rating agencies and get an investment-grade credit rating. This step is also optional and is required mostly for targeting large groups of retail investors.

8. Asset management

For trust SPVs, the asset is managed by a Trustee in the interests of the beneficiary investors. He assigns service and management companies for the maintenance and administration of the asset. He holds asset titles, manages trust accounts, and secures getting due cashflows by investors.

9. Sale of securities

Sales are targeted to investor groups by the initial placement strategy. Worth to note, the promotion options for an offer are determined not only by marketing priorities but also by legal restrictions in chosen jurisdictions. In particular, among feasible promotion options for an EU-countries market, there are private placement, public placement for professional or retail investors, and reverse solicitation. Foreword, tokens can be initially sold in two ways: by an issuer or by a financial company via an authorized marketplace.

Summary

Securitization opens for originators a new way to raise capital, which makes originators less dependent on banking financing and lets to reach new investor pools featured by smaller investment chunks and thus increase the potential interest for the object, and therefore gain its price. In the case of debt fundraising, commonly, the interest rate of bonds backed by a securitized asset is substantially lower than rates of bank loans or interest on bonds of the parent company. Furthermore, the Loan to Value (LTV) ratio reached in this case is much higher (90–95%) than when financing by bank loans (60–70%).

For investors, securitization enables investment into real estate with all their upsides, including investments in projects which were not accessible without tokenization due to high entry barriers, without incurring the need to manage and administer it. In turn, a better choice of investment vehicles entails better returns. The option of investing a smaller chunk into a project enables an Investor to diversify its unsystematic risk and thereby improve the overall portfolio parameters.

Blog Credits: Medium

What are Blockchain Layers?

Posted on by Shipra

Blockchain Layers

Blockchain architecture pertains to the components, subcomponents, or layers that comprise a comprehensive blockchain system. Each layer has a specific purpose, ranging from data storage to network communication and system-wide consensus.

Understanding these layers of blockchain is critical for engineers and start-up founders looking to use this technology properly.

In this blog, we will explain the complexities of blockchain architecture by breaking it down into layers and their related functionality. Our objective is to assist you in understanding the complexity of blockchain design, optimizing performance, and identifying any security risks.

Overview of Blockchain Architecture

Blockchain Architecture

Blockchain has transformed the way information is stored and transmitted. It is widely regarded as the greatest invention of the 21st century, and it will soon be incorporated into ordinary Internet applications. However, because of its intricacy, most people are unfamiliar with how Blockchain works. In this essay, we’ll demystify how blockchains function and the many levels within them in the simplest way possible.

Simply said, blockchain is a distributed ledger used to store transaction data. For example, Bitcoin is powered by the Bitcoin blockchain, and every transaction that involves the sending and receiving of Bitcoins is recorded on the blockchain. Because of its openness, it is a viable alternative to traditional record-keeping and verification methods. This means that any transaction on a public blockchain may be viewed by everyone.

Furthermore, a blockchain is not controlled by a single corporation, but rather by everyone who validates transactions. This eliminates a single point of failure, making blockchain hacking nearly difficult because there is no point of origin. It promotes openness, removes intermediaries, and lowers operating expenses.

Now that we’ve covered the principles of blockchain, let’s look at the layers in blockchain and how they work together. 

Blockchain is primarily made up of five layers: hardware infrastructure, data, network, consensus, and application. These blockchain architecture layers have a distinct function. These different layers of blockchain work together to provide a full solution that includes data administration on the back end and user-facing apps on the front end.

  • The Hardware Layer 

Blockchains are built around peer-to-peer information exchange. The hardware layer consists of a network of devices that contribute to the blockchain’s computational power. Most significantly, blockchains are the total of all the nodes that compose them. A node is a computer or network of computers that decrypts transactions.

  • The Data Layer

The data layer comes after the hardware layer, and it stores transaction details. The transaction stored in a block (the fundamental unit of a blockchain) contains information on the cryptocurrency delivered, the receiver’s public key, and the sender’s private key. Each data-containing block is linked to the previous and subsequent blocks formed. Only the genesis block, the network’s initial block, is connected forward rather than backward.

Related: Multi-Chain Vs. Cross-Chain: The Future of Blockchain?

  • The Network Layer

This layer handles interactions among nodes on a blockchain. While blockchain is an open system, each node must be aware of the transactions that other nodes are confirming. The network layer facilitates this communication.

  • The Consensus Layer

This layer is accountable for block validation. Let us explain the consensus layer with an example. Let’s assume John and Mark are two blockchain validators. They are given transactions, which must be decrypted and appended to the block. 

Transactions that John receives are: A and B

The transactions that Mark gets are B and C.

If both John and Mark confirm the transactions and upload them to the blockchain, transaction B will appear twice on the blockchain. This indicates that double expenditure will occur. To prevent this, John and Mark compete to solve a complex mathematical challenge, and the first person to answer it will add the block to the blockchain. This type of consensus process is known as Proof of Work. 

In the case of Proof of Stake (POS), the system selects the validator dynamically.

  • The Application Layer

Apps are created on the application layer in blockchain. These applications might be anything. Examples include wallets, social media apps, browsers, defi apps, and NFT platforms. Though the app’s UI/UX is identical to that of any other conventional application, the distinction is that these apps’ data storage is decentralized at the backend.

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What are Blockchain Layers?

Blockchain technology has revolutionized the world of finance and beyond. However, the intricacy of the technology can be frightening for newbies, particularly when attempting to comprehend the various levels that comprise the blockchain ecosystem.

Most people imagine cryptocurrencies in terms of market capitalization, which may be deceptive. A cryptocurrency’s worth is defined not just by its market capitalization, but also by the unique problem it answers, the underlying technology, and the layer of the blockchain ecosystem in which it exists.

So, what are the layers of blockchain? Blockchain layers are the several tiers of infrastructure that collaborate to allow the functioning of a blockchain-based system. Each layer builds on top of the preceding one, and each layer uses the infrastructure of the previous layer.

Related: Layer-1 Vs. Layer-2: The Blockchain Scaling Solutions

To facilitate comprehension, the blockchain ecosystem can be divided into four layers:

  • Layer 0 – Software Infrastructure

Layer 0 refers to all digital technologies that enable blockchains. Layer 0 aims to make blockchain networks viable, accessible, and interoperable. This enables developers to identify more innovative options, resulting in increased token usefulness for consumers. Layer 0 enables functioning blockchains through physical infrastructures including hardware, energy, and Internet services. Decentralization is a key distinction between traditional telecom corporations and Layer 0 initiatives. Layer 0 protocols improve blockchain communication, allowing them to synergize and use each other’s dApp ecosystems.

Cross-chain interoperability protocols (CCIP) are what Layer 0 is all about. Blockchains that are functional with one another can transfer tokens and data with ease. Examples of CCIP initiatives that give blockchains and apps off-chain data are Chain Link, Cosmos, and Polkadot.

  • Layer 1 – Blockchains/Networks

Blockchains are initiatives at Layer 1. Public blockchains are electronic ledgers that make it simple to read and contribute financial data while preventing tampering with already-existing data. Every blockchain has a unique consensus methodology to decide what information should be added, and smart contracts are used to carry out transactions without the need for outside intervention. Smart contracts are independent programs that don’t communicate with users directly, in contrast to apps. While some smart contracts, like those in Bitcoin, simply permit simple payments, others, like those in Ethereum, let programmers design sophisticated applications.

Solana, Ripple,  Binance Chain, Monero, and Litecoin are among the more Layer 1 blockchain. Developers select a blockchain according to its design; decentralization, security, and scalability are the top priorities for any network.

  • Layer 2 – Sub-Blockchains

Layer 2 blockchains are created by blockchain developers using existing blockchains as a foundation for their own. They utilize Layer 1 blockchain technology, which makes them more scalable and effective. For instance, the L2 blockchains Polygon, Arbitrum, and Optimism on Ethereum are less expensive and speedier. Nonetheless, their reduced size makes them more concentrated. L2s are likewise dependent on L1s, thus when L1s are unavailable, they cannot function. Conversely, there’s no assurance that L2 blockchains will be as safe as L1 blockchains because many of them are experimental networks.

L1 blockchains, like Ethereum 2.0 and Bitcoin Taproot, are updated on a regular basis by the community. With time, flexible blockchains grow more decentralized and safe. Such modifications are prevented by smart contracts on immutable blockchains like Ethereum. Instead, developer communities generate hard forks such as PulseChain. A fork blockchain is a variation of the original blockchain with additional features and code changes, resulting in differing scalability, security, and decentralization. The teams who build Layer 2 and fork chains are frequently unaffiliated with Layer 1 creators.

  • Layer 3 – Decentralized Applications (DApps)

The action takes place in Layer 3. The primary draw of Layer 3 is its decentralized applications (DApps), which are constructed on top of blockchains. DApps are software programs that offer a decentralized user experience and operate on a blockchain network. Simple financial apps like Bitcoin wallets and intricate ones like decentralized exchanges, lending protocols, and prediction markets are among them.

DApps are constructed on top of many blockchains, each of which has unique smart contract features and consensus mechanisms. The most widely used blockchain is Ethereum.

It is noteworthy that every layer has a distinct function and is necessary for the blockchain ecosystem to function. The top layers could not work correctly without a solid basis in the bottom layers. 

Differences Between Layers 0,1,2,3

Layer 0 This layer contains the protocols, hardware, and other fundamental components.
Layer 1 It is responsible for maintaining the blockchain’s code, consensus process, and dispute resolution. As an illustration: Blockchains for Ethereum and Bitcoin.
Layer 2 Compared to Layers 0 and 1, Layer 2 has greater scaling possibilities. It can be combined with solutions from outside sources.
Layer 3 dApps and other user-facing apps are hosted on this layer.

What is Scalability in Blockchain Technology?

Because of the increasing prevalence of cryptocurrencies in everyday life, blockchain layers are now all but essential since they improve network security and revolutionize recordkeeping, among other things.

Consider Bitcoin as an example:

The Visa network’s electronic payment network is capable of handling over 20,000 transactions per second, but Bitcoin’s primary chain can only handle seven. The disparity is astounding. For this reason, many layer 2 blockchain systems are now in use. These systems employ smart contracts to automate transactions.

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What Makes Blockchain Scalability Essential?

Since a blockchain can’t simultaneously optimize for all desirable attributes, trade-offs must be made. The increased demand has led to a rise in transaction prices to the point where some users are unable to continue using the blockchain.

The current ability of blockchains, such as Ethereum and Bitcoin, to grow is restricted. In order to overcome the blockchain trilemma, a global community of IT firms, startups, and researchers is working feverishly to build layer one and layer two solutions. Blockchain networks are designed to be scalable, secure, and fast. Additionally, they encourage novel goods and technology that can improve the scalability of current blockchain networks. Bitcoin seeks to address the problem by supplementing the existing blockchain layer with a new layer. 

As Bitcoin gains traction in the business sector, blockchain developers are working to broaden the scope of blockchain efficiency. We can reduce processing times and increase TPS (transactions per second) by developing blockchain layers and improving scalability using what is now known as “layer two” technologies.

Conclusion

In wrapping up, grasping the layers of blockchain technology is key to understanding its intricacies and possibilities. Each layer—network, consensus, incentive, and application—plays a vital role in ensuring secure and efficient transactions within decentralized systems. As blockchain evolves, a deep understanding of these layers becomes increasingly crucial for developers, businesses, and enthusiasts alike.

SoluLab stands out as a top blockchain consulting company, offering tailored solutions to businesses aiming to leverage blockchain’s potential. With expertise spanning various blockchain platforms and a commitment to innovation, SoluLab provides end-to-end support, whether it’s developing decentralized applications, integrating smart contracts, or enhancing existing systems with blockchain technology. Ready to explore the benefits of blockchain? Take the first step with SoluLab today. Contact us now!

FAQs

1. What are the main layers of blockchain technology?

Blockchain technology comprises several layers: the network layer, consensus layer, incentive layer, and application layer. Each layer serves a distinct purpose in facilitating secure and transparent transactions within decentralized networks.

2. How does the network layer of blockchain function?

The network layer of blockchain is responsible for maintaining the peer-to-peer network infrastructure. It ensures that nodes can communicate and validate transactions efficiently across the network, fostering decentralization and resilience.

3. What role does the consensus layer play in blockchain?

The consensus layer establishes a mechanism for achieving agreement among network participants on the validity of transactions. Through various consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS), consensus ensures that all nodes in the network reach a common understanding of the ledger’s state.

4. What are some real-world applications of blockchain technology?

Blockchain technology finds application across diverse industries, including finance, healthcare, supply chain management, and voting systems. For instance, it enables secure and transparent peer-to-peer transactions in finance, facilitates immutable and accessible health records in healthcare, enhances traceability and authenticity in supply chains, and ensures the integrity and transparency of electoral processes.

5. How can businesses get started with blockchain implementation?

Businesses interested in adopting blockchain can begin by identifying use cases where the technology can address specific pain points or enhance existing processes. They can then collaborate with experienced blockchain development companies like SoluLab to design, develop, and deploy tailored blockchain solutions. SoluLab offers comprehensive support, from initial consultation to implementation and maintenance, to help businesses navigate their blockchain journey seamlessly.

Actual, practical uses for NFTs.

Posted on by Shipra

This year I quit my job at Amazon Web Services, created a top 150 all time volume NFT collection, and started a software company called UTILITI, building the first web3 application platform.

These days I spend most of my time consulting game studios, enterprises, and consumer brands about how to think about implementing web3 & NFTs in a value-added way.

Here are a few of the cool things we’re working on for household names.

  • A digital loyalty app that also serves to identify counterfeit products.
  • A disruptive mobile game that can onboard mainstream users seamlessly, and makes NFT ownership a bonus, rather than a premise.
  • A geo-fenced loyalty token airdrop application that drives foot traffic.
  • Quite a few RPGs that allow players to earn upgrades to the visual appearance of their character avatar NFTs.

The common theme between all these implementations is that they’re not focused on selling NFTs directly to users who are expecting an arbitrage opportunity. In other words, the paradigm is starting to shift.

In the early days of 2021 when public interest and demand for NFTs and metaverses massively outpaced the number of people capable of creating them, the general public came to know NFTs as overpriced monkey JPEGs and digital land selling for hilariously inflated prices.

You can also read : What You Need to Know About Investing in Tokenized Real Estate

GME, AMC, and DOGE traders flocked into NFTs expecting the next 1000x. Shitty businessmen and outright scammers sold them and became rich. Once again the mainstream came to know yet another blockchain implementation as a clownish unregulated financial instrument, except this time some celebrities bought them, and some companies sold them.

The true value of blockchain technology was missed, in this case the potential for tangible ownership of intangible digital assets as a consumer benefit.

That is what we’re working with businesses to unlock.

Instead of selling NFTs to their already over-monetized customers, brands should instead seek to give them freely in exchange for specific actions, aiming to provide sentimental and exclusive value to their best customers.

Instead of encouraging investors to purchase in-game assets well before a game release, game studios should drop them for free to build a community of early users and feedback providers to inform their roadmaps.

Enterprises should seek to hand out NFTs to better engage and understand the top 10% of their customers who create 50+% of their revenue, turning communities of holders into customer focus groups.

You can also read : Blockchain in real estate: How technology is changing the industry

The trick is to rethink from first principles how to leverage this concept of bestowed digital asset ownership that’s beginning to permeate into the collective psyche in a way that benefits your target customers — bonus points if you can attract the massive web3 native audience.

If your goal is to sell an NFT to bootstrap a project then you should use the funds you raise to provide exclusive value and experiences for the community of holders you create no matter what.

Obviously more practical implementations like insurance claim settlement, supply chain tracking, and anti-counterfeiting are unlocked by blockchain technology, but I’m personally most excited about the way this concept of digital asset ownership through NFTs can blend with a framework for decentralized (non-value extractive) platforms to create holistically improved user experiences. More on that later.

We’re already starting to see DeFi eat banks, and I believe creator platforms are next. There’s a reason Linux powers the most virtual machines in the cloud.

Credit : Medium

Beyond the Hype: Real-World Benefits of Blockchain in Real Estate

Posted on by Shipra

Real Estate With Blockchain Technology

Blockchain technology, a groundbreaking innovation originally devised for the cryptocurrency realm, has now transcended its initial confines and is making significant inroads into diverse industries. One sector where its transformative potential is particularly conspicuous is the real estate industry. This introduction aims to provide a concise yet comprehensive overview of blockchain technology, its relevance in real estate, and the challenges facing the real estate industry today.

At its core, blockchain is a decentralized, distributed ledger that records transactions across a network of computers securely and transparently. Utilizing cryptographic principles, each block in the chain is linked to the previous one, creating an immutable and tamper-resistant record. This technology ensures trust and transparency by eliminating the need for intermediaries and central authorities, offering a peer-to-peer approach to transactions.

The real estate industry is confronted with a myriad of challenges, ranging from cumbersome and time-consuming processes to issues of transparency and fraud. Traditional methods of property transactions involve numerous intermediaries, leading to inefficiencies, delays, and increased costs. Additionally, the lack of transparency in property records and the susceptibility to fraudulent activities have created a pressing need for innovative solutions.

What are the Fundamental Principles of Blockchain?

Blockchain, at its core, is a decentralized and distributed ledger technology that underpins a secure and transparent system for recording and verifying transactions. The fundamental principles of blockchain include decentralization, transparency, immutability, and consensus. Unlike traditional centralized systems, blockchain operates on a network of nodes, each contributing to the validation and verification of transactions. 

The decentralized nature of blockchain ensures that no single entity controls the entire network, fostering trust and eliminating the need for intermediaries.

A. Decentralization and Security Aspects

Decentralization is a cornerstone of blockchain, ensuring that data is not stored in a single location but is distributed across the network. This mitigates the risk of a single point of failure and enhances the system’s resilience. Security in the blockchain is achieved through cryptographic techniques, making it nearly impossible for malicious actors to tamper with or alter the stored information. The use of consensus mechanisms, such as proof-of-work or proof-of-stake, further fortifies the integrity of the blockchain network.

B. Blockchain in Real Estate

The application of blockchain in the real estate sector has the potential to revolutionize traditional processes, offering benefits that include increased transparency, efficiency, and security. One notable advantage is the reduction of fraud, as blockchain’s immutability ensures that once a transaction is recorded, it cannot be altered. Additionally, smart contracts, self-executing agreements with predefined rules, automate and streamline various real estate processes, eliminating the need for intermediaries and reducing the risk of errors.

Real Estate Tokenization Services

What is the Transformative Impact of Blockchain on Real Estate?

Blockchain technology has emerged as a revolutionary force across various industries, and the real estate sector is no exception. Its decentralized and transparent nature brings forth a myriad of benefits, fundamentally reshaping the way property transactions are conducted. This article delves into the profound impact of blockchain on real estate, exploring key aspects such as transparency, smart contracts, and the tokenization of real estate assets.

A. Transparency and Trust in Property Transactions

One of the primary advantages of integrating blockchain in real estate is the enhanced transparency it brings to property transactions. Traditional real estate processes often involve multiple intermediaries, leading to a lack of transparency and increased potential for fraud. With blockchain, a decentralized and tamper-proof ledger ensures that all transaction data is securely recorded and easily accessible to relevant parties.

Related: Blockchain Technology in dApp Development

Blockchain technology promotes trust by providing a single source of truth for property records. This transparency mitigates the risk of fraudulent activities, as every transaction is verifiable and cannot be altered retroactively. Real estate stakeholders, including buyers, sellers, and regulatory bodies, can confidently rely on the accuracy and immutability of the information stored on the blockchain, fostering a more trustworthy and efficient property transaction ecosystem.

B. Smart Contracts Revolutionizing Deal Processes

Smart contracts, enabled by blockchain technology, are automating and revolutionizing deal processes in the real estate industry. These self-executing contracts automatically enforce and execute the terms of an agreement when predefined conditions are met. This eliminates the need for intermediaries, streamlining the overall transaction process and reducing the potential for errors or disputes.

Smart contracts in real estate facilitate quicker and more secure transactions, as they eliminate the need for manual verification and approval. From property sales to lease agreements, the automation provided by smart contracts not only increases efficiency but also reduces transaction costs. This innovation is a testament to the transformative power of blockchain in simplifying complex real estate processes.

C. Tokenization of Real Estate Assets

The concept of asset tokenization involves representing real-world assets, such as real estate properties, as digital tokens on a blockchain. This fractional ownership model allows investors to buy and trade fractions of real estate assets, providing liquidity and access to a broader pool of potential investors.

Blockchain facilitates the tokenization of real estate assets by dividing them into tradable tokens, each representing a share of the property. This democratizes real estate investment, allowing individuals to participate in high-value properties with smaller investments. Tokenization not only enhances liquidity but also reduces the barriers to entry, opening up new opportunities for both investors and property owners.

What are the Key Challenges Associated With the Adoption of Blockchain Technology in the Real Estate Industry?

Challenges of Blockchain Technology in the Real Estate Industry

The adoption of blockchain technology in the real estate industry has gained significant traction, promising transformative benefits and revolutionizing traditional processes. However, like any innovation, it is not without its challenges and concerns. In this article, we delve into the key obstacles associated with incorporating blockchain in real estate and explore potential solutions.

1. Lack of Standardization

One major challenge in the integration of blockchain in real estate is the absence of standardized protocols. The industry requires universally accepted standards to ensure interoperability, data consistency, and seamless collaboration between different stakeholders.

2. Complex Regulatory Environment

Real estate transactions are subject to a myriad of regulations, varying across jurisdictions. Navigating this complex regulatory landscape poses a significant hurdle for the widespread adoption of blockchain in real estate. Developing a framework that aligns with existing regulations is crucial for fostering trust and compliance.

3. Security Concerns

While blockchain is renowned for its robust security features, the real estate industry’s adoption is hindered by the fear of cyber threats and unauthorized access. Building trust in the technology necessitates implementing robust security measures, and encryption techniques, and educating stakeholders on the resilience of blockchain against cyber attacks.

Related: Blockchain Technology in Cybersecurity

4. Integration Challenges

Many real estate processes are deeply entrenched in traditional systems, making the integration of blockchain a daunting task. Overcoming technical challenges and seamlessly integrating blockchain applications in real estate workflows requires a comprehensive strategy, skilled professionals, and a phased approach.

5. Scalability Issues

As the real estate industry generates vast amounts of data, scalability becomes a concern. Ensuring that blockchain technology can handle the scale of transactions and data storage required for real estate applications is vital for its successful adoption.

6. Cost Implications

Initial setup costs and infrastructure investment can be a deterrent for real estate businesses considering blockchain adoption. Convincing stakeholders of the long-term benefits and potential cost savings is essential for overcoming this challenge.

7. Resistance to Change

Resistance to change is a common hurdle in any industry, and real estate is no exception. Overcoming skepticism and convincing stakeholders, including property owners, buyers, and regulatory bodies, about the advantages of blockchain in real estate is a critical aspect of its successful implementation.

Check out Case Study: acreage

How is Blockchain Technology Reshaping the Future of the Real Estate Industry?

In recent years, the real estate industry has witnessed a paradigm shift with the integration of blockchain technology. This transformative force is not only reshaping traditional processes but also paving the way for numerous emerging trends that promise to redefine the sector. Let’s delve into the future trends of Blockchain in Real Estate, exploring potential advancements, innovations, and the benefits that this revolutionary technology brings to the industry.

A. Emerging Trends in Blockchain and Real Estate

  • Tokenization of Real Estate Assets

Blockchain facilitates the fractional ownership of real estate through tokenization. This allows investors to own a share of high-value properties, making real estate investment more accessible and liquid.

  • Smart Contracts Streamlining Transactions

Smart contracts, powered by blockchain, automate and streamline various processes in real estate transactions, from property listings to payments and contract execution. This not only reduces the need for intermediaries but also enhances transparency and security.

  • Decentralized Property Listings

Blockchain enables the creation of decentralized and tamper-proof property listings, preventing fraudulent activities and ensuring the authenticity of property information. This contributes to a more trustworthy and efficient real estate market.

B. Potential Advancements and Innovations

  • Enhanced Security and Transparency

Blockchain’s immutable and decentralized nature ensures the security of sensitive data in real estate transactions. This reduces the risk of fraud and ensures that all parties involved have access to a transparent and unalterable record of the transaction history.

  • Blockchain-Based Real Estate Platforms

Innovative blockchain platforms are emerging, utilizing blockchain for property transactions, rental agreements, and property management. These platforms enhance efficiency, reduce costs, and provide users with a seamless and secure experience.

  • Integration with Emerging Technologies

The integration of blockchain with other emerging technologies like AI and IoT is on the horizon. This convergence can lead to intelligent property management systems, automated maintenance, and even predictive analytics for property values.

What are the Risks and Mitigations in Harnessing Blockchain for Real Estate?

Risks and Mitigations in Harnessing Blockchain for Real Estate

Blockchain technology has emerged as a revolutionary force in various industries, including real estate. Its decentralized and secure nature promises to streamline processes, enhance transparency, and reduce fraud. However, as with any innovative technology, implementing blockchain in real estate is not without its challenges. In this section, we delve into the risks associated with blockchain in real estate and explore effective strategies to mitigate these challenges for a successful implementation.

A. Analyzing Risks Associated with Blockchain in Real Estate

  • Data Security Concerns

The decentralized nature of blockchain is both its strength and potential weakness. While it minimizes the risk of a single point of failure, it introduces concerns related to data security. Unauthorized access to sensitive information could compromise the integrity of real estate transactions.

  • Mitigation Strategy

Employing robust encryption protocols and implementing permissioned blockchain networks can enhance data security, ensuring that only authorized parties have access to sensitive information.

  • Integration Complexity

The existing real estate infrastructure may not seamlessly integrate with blockchain technology, leading to complexities in implementation. This could result in disruptions to ongoing processes and hinder the adoption of blockchain.

  • Regulatory Compliance

The real estate industry is subject to stringent regulations that may vary across regions. Adhering to these regulations while incorporating blockchain poses a significant challenge, potentially leading to legal issues and setbacks.

Related: Creating the Next Decentralized Application

B. Strategies to Mitigate Challenges and Ensure Successful Implementation

  • Thorough Education and Training

Educating stakeholders, including real estate professionals, on the benefits of blockchain in real estate is crucial. Training programs should cover both the conceptual understanding of blockchain technology and its practical applications.

  • Mitigation Strategy

Elaborating with educational institutions and industry experts to develop targeted training programs can ensure that all parties involved possess the necessary knowledge to harness the benefits of blockchain.

  • Creating Interoperable Solutions

Developing blockchain solutions that seamlessly integrate with existing real estate systems is essential. Interoperability ensures a smooth transition and minimizes disruptions during the implementation phase.

  • Engaging Stakeholders Proactively

Involving all relevant stakeholders in the planning and implementation process fosters collaboration and addresses concerns at an early stage. Proactive engagement ensures that everyone is aligned with the objectives of integrating blockchain in real estate.

How is Blockchain Technology Reshaping the Global Real Estate Landscape?

Blockchain technology has rapidly gained traction across various industries, and the real estate sector is no exception. The adoption of blockchain in real estate has witnessed a global surge, with notable benefits reshaping traditional practices. This article delves into an overview of the international adoption of blockchain in real estate, highlighting regional variances and success stories that underscore the transformative potential of this technology.

A. Overview of International Adoption of Blockchain in Real Estate

  • Transforming Transactions

Blockchain in real estate streamlines property transactions by providing a decentralized and transparent ledger. This ensures secure and tamper-proof documentation, reducing the risk of fraud and enhancing trust among the parties involved.

  • Efficient Title Management

Blockchain facilitates efficient title management, minimizing the complexities associated with verifying property titles. Smart contracts, powered by blockchain, automate the transfer of ownership, ensuring accuracy and speed in title transfers.

  • Tokenization of Assets

Blockchain enables the tokenization of real estate assets, dividing them into tradable digital tokens. This fractional ownership model enhances liquidity in the real estate market, allowing smaller investors to participate in high-value properties.

B. Regional Variances and Success Stories

  • North America

North America has witnessed significant adoption of blockchain in real estate. The use of blockchain technology for transparent and efficient property transactions has gained momentum, with success stories emerging from major cities like New York and Toronto.

  • Europe

European countries are exploring blockchain applications in real estate to address regulatory challenges and improve transactional efficiency. Pilot projects in countries like Sweden showcase the potential for blockchain in streamlining property registration processes.

  • Asia-Pacific

In the Asia-Pacific region, blockchain adoption in real estate is growing, driven by initiatives in countries like Singapore and Japan. Blockchain’s role in enhancing transparency and reducing fraud is particularly crucial in markets with high property investment activities.

  • Middle East and Africa

The Middle East and Africa are embracing blockchain for land registry systems and property transactions. Blockchain’s ability to reduce paperwork and streamline processes aligns with the region’s vision for modernizing real estate practices.

White Label Real Estate services

Conclusion

In conclusion, SoluLab- a blockchain development company, has emerged as a pioneering force in revolutionizing the real estate industry through the transformative power of blockchain technology. The integration of blockchain in real estate has ushered in a new era of transparency, efficiency, and security, fundamentally reshaping traditional practices.

SoluLab’s commitment to harnessing blockchain technology in real estate is evident in its innovative solutions and customizable platforms. The company’s expertise extends to diverse blockchain use cases in real estate, offering tailored applications that cater to the specific needs of clients. Whether it’s streamlining property transactions, enhancing data security, or optimizing workflow efficiency, SoluLab’s solutions leverage the full potential of blockchain technology to bring about tangible improvements in the real estate landscape.

As the real estate industry continues to evolve, blockchain technology remains a cornerstone of this transformation. SoluLab’s initiatives exemplify the impact and adaptability of blockchain in real estate, providing a glimpse into the future of a more transparent, efficient, and secure property ecosystem. In essence, the strategic incorporation of blockchain technology by SoluLab marks a pivotal moment in the ongoing narrative of how innovation is reshaping the dynamics of the real estate industry.

FAQs

1. How is Blockchain Technology Transforming the Real Estate Industry?

Blockchain in Real Estate is revolutionizing traditional practices by introducing transparent and secure transaction processes. This technology ensures tamper-proof record-keeping, reducing fraud and enhancing trust among stakeholders.

2. What Are the Key Benefits of Integrating Blockchain in Real Estate?

The Benefits of Blockchain in Real Estate include increased transparency, reduced paperwork, faster transactions, and enhanced security. Smart contracts, a blockchain application in real estate, automate and enforce agreements, streamlining processes.

3. Can You Explain Blockchain Use Cases in Real Estate?

Blockchain technology in real estate finds diverse applications. These use cases encompass property tokenization, ensuring fractional ownership, and establishing immutable property records. This decentralized approach adds efficiency to transactions and minimizes disputes.

4. How Does Blockchain Ensure Security in Real Estate Transactions?

Blockchain applications in real estate bring unparalleled security by employing cryptographic techniques. Each transaction is recorded in a block, linked to the previous one, making alteration virtually impossible. This tamper-resistant structure safeguards sensitive information.

5. How Does Blockchain Streamline Property Transactions?

Blockchain technology in real estate expedites property transactions by eliminating intermediaries and reducing the need for manual verification. This leads to faster and more cost-effective processes, making property acquisition and transfer more efficient.

6. Are There Any Challenges Associated with Implementing Blockchain in Real Estate?

While the benefits of blockchain in real estate are significant, challenges include regulatory concerns and the need for industry-wide adoption. Overcoming these obstacles is crucial for maximizing the potential of blockchain technology in the real estate sector.

What You Need to Know About Investing in Tokenized Real Estate

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What You Need to Know About Investing in Tokenized Real Estate

BRIKN is often termed one of the best active ICO projects in 2022. Do you know why it is popular? To answer in simple words, it made people realize their age-old dream of tokenizing real-world properties.BRIKN is the world’s first property DAO Ecosystem powered through blockchain. Blockchain has existed for a long time, but now it’s just inescapable. Crypto has infiltrated almost every major industry. One such sector is- real estate. Regarding investing opportunities, the real estate industry remains the safest and ensures the best ROI(return on investment). Now, imagine if the ever-prospering real estate combines with the swiftly growing blockchain technology.

What does tokenization of real estate mean?

Real estate tokenization simply means converting a real estate asset into a token/coin on the blockchain network and setting it up for sale. In a way, these tokens suggest a person’s interest in property/landholdings or can work to raise capital for investment development. The process attracts a broader range of visitors and developers to participate or invest in real estate.

Investing in tokenized property is not much different from buying a syndicated real estate deal, commonly referred to as a private placement or regulation D offering. Just that instead of receiving a paper certificate that showcases your membership interest in the underlying LLC, you, as a tokenized real estate investor, get a crypto token representing that same membership. Blockchain is where this real estate token gets stored. It can be bought, sold, or traded (following an initial holding period) much more easily, unlike the typical syndication, which must be held until the project sponsor refinances or sells. 

There are mainly three key players in tokenized real estate- namely, 

Real estate operators– the owners that provide and manage the property. And are sometimes also responsible for raising the money required to invest in real estate property.

Tokenization platforms- are responsible for issuing tokens, token sales, and secondary token exchanges.

Investors- use tokenization platforms to access investment opportunities, trying to become part-owners of specific properties by purchasing tokens/coins.

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

How tokenized real estate investing works.

Tokenised, real estate offerings are somewhat similar to traditional ones in the sense that they both use special purpose investment vehicles (SPVs), which are like a subsidiary company that is formed to undertake specific business activity or purpose. It’s usually structured as limited liability companies (LLCs) to invest in real estate. Structure finance applications like real estate commonly utilize SVPs, whether traditional or tokenized. 

When it comes to blockchain-based real estate deals, the ownership of the limited liability companies is fractionalized or compartmentalized into security tokens. If you want an exemption from the detailed and expensive process of creating public security, you must make a private placement offering (PPM). In this, all relevant details regarding the investment, all the potential involved risks of the investment, the sponsors/partnerships of the investment and others should be mentioned. A subscription and operating agreement for the SPV should also be there that states the rights and obligations of investors and also managers.

Smart contracts are deployed to programme the real estate security tokens to ensure better compliance with securities law.

 Smart contracts enforce applicable purchase and sale restrictions as they are self-executing lines of code with the terms of an agreement between buyer and seller automatically verified and executed via a computer network. Using smart contracts helps mandate the holding time for tokens and better regulation on who can purchase tokens/coins. Smart contracts deployed to blockchains render transactions traceable, transparent, and irreversible.

Tokenization platforms have the necessary tools to enforce these rules and regulations, like KYC and checks for anti-money laundering (AML) and investor accreditation. If a buyer goes through these checks, they are listed or commonly referred to as ‘whitelisted’ as pre-approved to purchase.

Every real estate property can be tokenized, whether commercial, residential or trophy. Expensive shopping complexes or malls(commercial property) can also be partitioned into fractions with the help of smart contracts, which in return makes way for affordable investments. Similarly, the tokenization of residential towers facilitates quick sales. Also, via tokenization, you can liquidate your exceptionally scarce properties, commonly referred to as “trophy assets” (while raising funds for projects).    

Inference

Even when real estate was inaccessible, it was the most preferred sector for investing. Now post-tokenization of this industry, anyone, even small-scale investors, can invest in expensive real estate and be a “landlord”.Blockchain-based tokenization has introduced the real estate industry to a decentralized financial system independent of biases. 

During tokenization, as real estate is fractionalized, liquidity improves. There is a swift change in ownership as people don’t sell the whole property in one go; rather, tokens are sold quickly. Tokenization is bringing in several phenomenal modifications to the real estate industry. It makes way for more transparent and efficient transactions and eliminates the risk of unfair deals.But in the end, we’ll advise you if you have an inclination in the crypto universe and are interested in investing in tokenized real estate, practice proper precaution before you invest in a company to be safe. 

 

When Blockchain Technology meets real estate

Posted on by Shipra

 

When Blockchain Technology meets real estate

The integration of blockchain technology with the real-estate sector could bring a lot of benefits to the industry, including increased trust, enhanced loyalty, proficient data management, and access to real-time information.

Evolution of Web 3.0

Blockchain technology today needs no introduction whatsoever. It has revolutionized businesses across industries and emerged as the game-changer innovation for enhancing the trust and efficiency of companies among target markets.

Read also: Buying Properties On Blockchain: 4 Startups Offering Convenient Services

Among others, the real estate industry can derive immense benefits from the integration of blockchain technology. The open ledger can influence a variety of parameters of the real estate industry including property search, ownership issues, management of data, and securing transactions. Following are the top five potential ways through which blockchain technology can transform the real estate industry:

1. Smart contract revolution

Smart contracts can be defined as fully automated contracts that are self-executed when certain predetermined conditions are met. These contracts are written with specific instructions embedded in their codes and when these terms are met, the instructions are executed without any manual intervention.

Smart contracts can automatically record and execute processes related to a number of aspects of real estate, especially related to the transactions and payments between participating stakeholders. Some of the significant benefits of smart contracts include time and money savings, fully secured and fast transactions, and middleman elimination.

2. NFTs registry

Just like NFTs represent the ownership of a specific person in the domain of art, music, entertainment, and other fields, these digital assets can also be used for claiming the ownership of real estate assets. Tokenization of real estate using blockchain technology, properties can be converted into digital tokens and owners can preserve their ownership in the form of NFT. The concept of NFT can also help in dividing large real estate assets into smaller units; thereby leading the way for investors to gain fractional ownership of physical assets.

Benefits of NFTs registry:

  • Enhanced Security and transparency
  • Disintermediation
  • Improve liquidity and fractional ownership
  • Reduced transaction cost

3. Transparent & Responsible System

Blockchain Technology has carved its place owing to its incredibly transparent decentralized system. Every stakeholder who is part of the blockchain system has access to the information contained on the open ledger network.

This open accessibility to the data is one of the distinguishing characteristics of blockchain and comes in handy in ensuring the transparency of the system. In the real estate sector too, this transparency factor can work wonders and help the industry to achieve double-digit growth in the future. By integrating blockchain technology with the real-estate sector could certify its credentials of being objective, just, and completely transparent in its practices.

4. Efficient data management

Not only does the blockchain allow the accessibility of data across ecosystems, but it also makes sure that this accessibility is offered on a real-time basis. The changes in the data are constantly updated across the blockchain, thereby allowing the stakeholders to have access to the latest information as and when it’s added to the network.

Real-time access to data can really prove crucial in enhancing the performance of the company while reassuring the market participants about the reliability and authenticity of the information. This also reduces the cost of acquiring the latest data significantly and brings more savings to both industry players and prospective buyers.

5. Real-time accounting

The benefits of having access to updated information on cash flows. property ownership and transactions manifest in the form of real-time accounting. Real estate organizations can use the blockchain feature to accomplish real-time accounts in a fully automated manner.

This means accounting records can be made available to the participating stakeholders on a real-time basis. This, in turn, will further enhance the transparency and trust factor associated with the real estate industry. Also, this real-time accounting saves a lot of time and money and reduces the dependence of the industry on manual interventions for greater operational efficiency and procedural effectiveness.

Blog Credits: Times of India

Artificial Intelligence, Blockchain, And The Future Of The World

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Over the past 2–3 centuries, the world has seen staggering change, starting with the Industrial Revolution that saw the transition to machines, the advent of chemical manufacturing, the invention of the steam engine, and the development of machine tools and mechanized factory systems.

Soon after, we saw the invention of flight, changing how the world traveled. In our lifetime, we have seen the transformative effect the internet has had on humanity. Now, we are witnessing the rise of not one but two world-changing technologies, blockchain technology and artificial intelligence (AI).

Companies and institutions are only just realizing the potential of these technologies and have begun deploying them, resulting in the complete transformation of industries. At AIWORK, we firmly believe in the transformative capabilities of blockchain and AI. We are utilizing them in tandem to address the issue of inconsistent and incorrect metadata in the online video ecosystem.

Understanding Blockchain And AI

First, allow us to explain the basics behind blockchain and AI. A blockchain refers to a database or distributed ledger shared between nodes (computers) on a network. They are primarily known for their role when it comes to cryptocurrencies such as Bitcoin and Ethereum, enabling them to maintain a decentralized and secure record of transactions that have taken place on the network. Blockchain also ensures complete transparency, as all recorded transactions can be verified, ensuring that the data can be trusted without the involvement of any third party.

Unlike traditional centralized databases, which are managed by a single entity, blockchains are decentralized databases, with the data spread across multiple nodes on the network. Each computer holds an identical copy of the decentralized ledger, meaning any change to the data would require all the data on all nodes to be changed simultaneously. This feature essentially makes the blockchain tamper-proof.

On the other hand, AI refers to machines capable of mimicking human intelligence thanks to complex algorithms that have been programmed into the algorithm. These machines are capable of thinking like humans, mimicking their actions, learning problem solving, rationalizing, and taking actions that have the best chance of achieving a specific outcome. AI can also learn from the data it provides, getting smarter as it processes more data.

You  can also read : Web3 is not About Blockchain or Decentralization

AI, Blockchain, And The Future Of The World

Blockchain technology and AI are often credited with ushering in the fourth industrial revolution, with their implementation revolutionizing industries such as healthcare, finance, supply chain, and logistics. In the healthcare industry, blockchain and AI have enabled the secure storage of patient data. Healthcare professionals can access this data and study insights from the data thanks to patterns generated by AI that analyzes the patient data. Applying blockchain and AI helped the healthcare industry navigate the minefield that was the Covid-19 pandemic.

Blockchain and AI have also wholly reinvented the financial industry, making transactions significantly faster and more secure by enabling trust between the participating parties. Eliminating third parties in these transactions also ensures that transactions are cheaper. Meanwhile, using AI reduces the dependency on humans, further increasing efficiency. The same can be said of the supply chain and logistics industry, where blockchain technology and AI are traditionally transforming the industry by digitizing paper-based processes, making them far more streamlined and effective.

In the future, the integration of blockchain technology and AI could transform a host of industries. They could have wide-ranging applications in finance, smart cities, autonomous vehicles, manufacturing, agriculture, etc.

How AIWORK Is Bringing Blockchain And AI To Asia

In July, we announced a partnership with video content management and player platform IVS, bringing our blockchain-powered AI technology to IVS’s over 120 million users in South East Asia (SEA) on the latter’s premium publisher network. At AIWORK, we are bringing blockchain technology and AI together to create a revolutionary and powerful new platform. The collaboration with IVS will enable us to showcase our minimum viable product (MVP) to users on the IVS network.

South East Asia has an extensive user base of internet users, and IVS alone reaches a significant chunk of that population through its network. With a reach of over 120 million users and over 1.5 billion monthly page use, IVS was the perfect choice to bring AIWORK’s technology to Asia and the world.

Thanks to the partnership with IVS, we launched several advertising campaigns on the IVS network. IVS’ publisher network comprises some of the most prominent media companies in the South East Asia region, including Kompas, MNC, Kapanlagi, and others. The partnership allowed us to release our ads on IVS channels and also allowed us to be featured on prominent media company websites. As a result, AIWORK was featured prominently on the front page of CNN Indonesia as a pre-roll ad and displayed along with several stories on the website.

Our ad was featured on prominent websites such as Kompas and Hipwee, featuring as a companion banner ad on both.

You can also read : Buying Properties On Blockchain: 4 Startups Offering Convenient Services

Overwhelming Response

Our campaign on the IVS Network was a resounding success, allowing AIWORK to generate 10,71,429 impressions in total, out of which 50,743 were converted into clicks and navigated to the AIWORK website. 7,29,496 viewers viewed the ads in their entirety, and after running for a week, the campaign achieved a total reach of 7,54,039.

In Closing: The Future

The potential of AI and blockchain technology is limitless, and what we are seeing right now is but a fraction of their potential when used together. Both technologies hold power to transform industries, which we are already witnessing in fields such as healthcare, supply chain, finance, and several other industries.

In the case of AIWORK, we are utilizing blockchain technology, AI, and human experts to generate high-quality and consistent metadata and address the issues faced by the online video space through both technologies.

About AIWORK

AIWORK is a decentralized and open-source blockchain protocol and ecosystem. The protocol is built on a network of AI computing resources and a community of human experts, which generate normalized and enhanced data for video content. Human experts can help create, verify and validate AI datasets, helping improve AI efficiency.

Credit : Medium

Buying Properties On Blockchain: 4 Startups Offering Convenient Services

Posted on by Shipra

Buying Properties on Blockchain: 4 Startups Offering Convenient Services

Homestays, AirBNBs, Apartments, Villas, and Vacation Houses. Everyone has a different definition of a ‘dream home.’ Soon, buying your dream home on the blockchain will be a reality. While online platforms for investing in real estate exist, the process is arduous. Modern-day platforms enable buying and selling properties on blockchain as a more convenient alternative.

Transcending Into A Transparent Future With Blockchain

But how does blockchain real estate solve the challenges in traditional real estate? For the globalization of real estate, the importance of trust is paramount. Blockchain real estate leverages Distributed Ledger Technology (DLT) to enable complete transparency in transactions for greater trust. Blockchain-powered platforms replace agents and third parties, allowing investors to interact directly with the platform. Limited accessibility and monopoly of large-volume investors are two major challenges in traditional real estate. Buying properties on blockchain promotes increased access, paving the way for fair practices.

One could write an essay on the benefits of blockchain in real estate. Tens of emerging platforms are taking real estate blockchain to the screens of investors globally.

Best Platforms For Buying Properties On Blockchain

1. Landshare

Landshare Logo

If you have done a little research about tokenized real estate, chances are you might already know about Landshare. The blockchain-powered platform lets you invest in real estate assets for as little as $50. It is one of the most innovative projects within the crypto industry, with $LAND as its primary token. However, you can invest in properties across the world using BUSD. You get rental income from properties you have invested in directly into your wallet every month, while Landshare takes care of maintenance, tenants, and insurance.

2. RealT

RealT Logo

 RealT is one of the most popular platforms for buying properties on the blockchain. With fractional ownership of real estate assets being one of the outstanding features of the platform, RealT offers you a passive income clubbed with the security of blockchain’s DLT. On RealT, you get the opportunity to buy a fraction of tokenized properties with permissionless Ethereum. The maintenance cost is really low and can be paid with RealTokens. You also get the opportunity to earn weekly rental income in $ETH, USD stablecoin, or xDai.

3. Propy

Propy Logo

Propy is one of the first blockchain real estate platforms leveraging web3 to make the process of buying and selling properties more secure, convenient, and fast. On Propy, you can buy or sell properties using your bank account, cryptocurrencies, or NFTs. It is a tailor-made tokenized real estate platform for buyers, sellers, and agents. The California-based platform is the preferred choice for real estate investors across the United States.

4. RealBlocks

RealBlocks Logo

RealBlocks is a tech-heavy platform with blockchain at its core. The platform leverages blockchain technology to reduce fees, provide liquidity, and streamline real estate investment. RealBlocks currently has $77 billion in assets under its administration. RealBlocks’ software is used by investment managers across the world who seek to expand their footprint.

What is a pre-ICO? How does it differ from an ICO?

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What is a pre-ICO How does it differ from an ICO

Pre-ICO, as the name implies, is a presale event held before the ICO. It’s a purchasing event at even lower pricing for a limited number of token launches. As a result, the development business may raise funds for its Initial Coin Offering platform or utilise it to finish its product. Some firms, such as Telegram, which raised $1.7 billion in 2018, and Datum, which raised $1.5 million in 2017, have had very successful presales. Pre-ICO fundraising goals are often smaller than the main ICOs, and tokens are typically offered at a lesser price.

Buyers benefit from incentive programs and potentially earn a significant ROI if they sell their crypto-tokens at a higher price. Pre-sales have prevailed since the advent of Bitcoin, the world’s original and oldest cryptocurrency. The bulk of them has become millionaires.

Presale

A pre-ICO presale, also known as an ICO presale, is a coin launch or sale event held before the general public may participate in an ICO. One disadvantage of ICO presales is that early investors or adopters dump tokens as soon as they become exchange-tradable. Because they obtained the tokens for less than the main ICO price, they often sell them at the ICO price, resulting in large gains while adversely impacting the price for ICO participants.

There are two kinds of pre-sales:

  • Investor-only Pre-sales 

It is only offered to wealthy investors willing to spend large quantities of money on the project. While the initial investment is substantial, investors will benefit from price increases once the tokens are available on the open market.

  • Open-for-all Pre-sales

These allow retail investors to purchase a project’s token before it becomes accessible to the general public. Nonetheless, the bulk of tokens remains unsold due to a lack of faith in ongoing activity.

How does Pre-ICO differ from ICO?

The primary distinctions between a Pre-ICO and an ICO (in most situations, but not all cases) are as follows:

  • Pre-ICO Tokens are typically distributed at the time of the ICO. Therefore pre-ICO customers may have to wait much longer to obtain the Tokens.
  • A Pre-ICO has a very modest quantity of real Tokens available for purchase. The final ICO will contain a much larger amount of tokens.
  • Pre-ICOs are often conducted when the underlying technology for the Tokens has not yet been implemented. ICOs are usually undertaken much later in the process when the product is ready for testing.
  • A Pre-ICO is often accessible to a considerably smaller number of individuals than an ICO.

How can you participate in a cryptocurrency pre-sale?

How can you participate in a cryptocurrency pre-sale

You may participate in a cryptocurrency pre-sale in three simple steps:

  • Find a pre-sale

Browse the pages of CoinMarketCap or CryptoTotem to see which projects are holding a pre-sale. We advocate completing due research and being completely informed of the project offered before making an investment decision.

  • Purchase

After you’ve made your account and wallet, all you are left to do is seek the pre-sale on your exchange’s website and buy your tokens.

  • Select an exchange

 Before opening an account with an exchange platform and depositing money, do your homework to guarantee that it is a reputable service provider. Choose well-known cryptocurrency exchanges to ensure that a reputable third party handles your funds.

Three pre-sales that grew into megaprojects:

  • Filecoin (FIL): 

FIL debuted with a pre-sale price of $5 and has since risen to $18.96. It debuted on the market in 2017 for $11.5 and has since increased by 279 per cent above its pre-sale price.

  • Calyx (CLX) – Coming Soon:

This project has created a reputation by developing a liquidity sourcing pool that enables it to deliver liquidity from many sources, making cryptocurrency swapping simpler. It is creating headlines because CLX holders will be entitled to a share of the fees transactors pay, enabling them to supplement their income.

  • Tezos (XTZ): 

One of the most well-known instances of a successful pre-sale is Tezos. It began with a pre-sale price of $0.47 and raised over $200 million during the ICO. XTZ sells at $3.05, representing a 549 per cent increase over its pre-sale price.

How does it work?

How does it work

The Pre-ICO sale often takes place a month or two before the ICO, although it might take up to a week or longer. Tokens are sold to investors once their prospective audience has been verified. There is often a minimum and maximum value per individual.

It may seem that obtaining a pre-ICO is simple, but it is not. They are typically provided to a small number of investors and may be completed in seconds. So, if you’re interested in the pre-sale, it’s always a good idea to keep up with the newest developments.

Pre-sales also assist developers in spreading the word about their products and gaining additional marketing attention. The event will be critical in attracting investors when the ICO platform goes live.

Pre-sales have prevailed since the beginning or advent of Bitcoin, the world’s original and oldest cryptocurrency, in 2009. It was a great opportunity for investors who enlisted at the time and maintained their money for more than a decade. The bulk of them has become millionaires now.

Disadvantages of Pre-ICO

Pre-sales are analogous to accessing the bottom level of a still-under-construction skyscraper. There is no way to tell if it will attract investors in the future until it is completely completed. While there are some advantages to purchasing crypto tokens during a pre-sale, such as a reduced entrance barrier and anticipated future gains, there are also some disadvantages:

  • Uncharted Territory

Pre-sales might be precursors to rug pulls and other frauds. Investing in anything that has not been tried or confirmed is dangerous. Not many currencies are as successful as Bitcoin and Ethereum.

  • High Volatility

 Although pre-sale prices are lower than ICO launch platform pricing, they may fall following the ICO, particularly if consumers do not perceive the underlying blockchain as creating value or addressing real-world issues. In this instance, you may lose your hard-earned money.

  • Cyber-Vulnerability 

Because most crypto wallets are custodial (kept by the exchange), nothing is protecting your funds from hackers other than the exchange’s security standards. Hackers steal hundreds of millions of dollars worth of cryptocurrency from internet marketplaces.

Conclusion

For starters, you will not hold stock in the future firm, and the ICO must be linked to a blockchain. Instead, crypto-tokens are sold in a ‘crowdsale,’ which enables anybody to purchase and support a company’s development of some new technology that is expected to shake the crypto world. 

Often, only a limited amount of tokens are available for sale in return for Bitcoins or fiat money. Companies like Ethereum and Waves have raised millions of dollars using pre-ICOs.

These tokens may then be traded or swapped for access to the finished product or service. And, since the amount of tokens launched is restricted, their value might skyrocket after the ICO, depending on the project’s performance.

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