Bitproperty is a Japan based startup which, with its online platform (currently in closed beta) is poised to help circumvent the financial and regulatory restrictions plaguing the real estate market.
The Ethereum blockchain based project will allow its users to create, buy and sell two different kinds of tokens which represent the rights for revenues generated by a certain real estate property. The different tokens are:
- Asset Tokens are issued for each property or asset listed on the platform with the amount of tokens issued against a specific property representing its value.Owners can decide whether to register all, or only a portion of their holdings. Dividends are paid based on the performance of the asset.
- Bitproperty Tokens (BTP) represent the inherent value of the platform and are also backed by Bitproperty’s managed assets, including a $30,000,000 solar farm. They pay dividends from energy sales and from platform transaction fees when owners list assets and users purchase asset tokens.
On October 15th, Bitproperty will start offering BTP tokens to investors for 0.0001 ETH each for a full month or until the 100,000 ETH cap is reached. Bitproperety is preparing for a public beta release in January 2018 with the final release of the platform being in March 2018.
As we discussed in one of our last posts, that How blockchain will change the real estate industry, I want to mention a few another industry which will be also reformed by the blockchain.
Probably this one will be one of the first “revolutionized” industry by blockchain. A well-implemented blockchain technology will cause lower transaction fees and also way faster nearly instantaneous transaction time, and this will save a lot of time and money for the customers and the banks as well.
Companys that offer cloud storage, stores their customers’ data in a centralized server, which leads to a higher network vulnerability from attacks by hackers. Blockchain cloud storage solutions offer decentralized storage, which causes a significantly lower vulnerability, and also lower fees.
Elections require authentication of voters identity, secure record keeping to track votes. Blockchain tools could serve as a foundational infrastructure for casting, tracking, and counting votes and also potentially eliminating the need for recounts by taking voter fraud.
As you can see blockchain can be used everywhere, I’ve tried to mention three absolutely different industries to show how many possibilities are there and we are only at the beginning of the rise of the blockchain.
Propy, the global property store has recently announced the first ever purchase of real estate on the blockchain network Ethereum. Michael Arrington, founder of TechCrunch remotely purchased a $60,000 apartment in Kiev with the use of the Ethereum cryptocurrency and PRO (Propy) tokens.
The purchase is a peek into a future where the real estate market, typically rife with red tape and bureaucracy has been made more efficient, transparent and secure through the use of smart contracts and blockchain technology. The CEO of Propy, Natalia Karayaneva stated that this is an important signal to foreign investors- especially Chineese, who are burdened with rigid capital controls of up to $50,000 per person- that they can invest in the Ukranian real estate market safely and securely.
Karayaneva stated that this is simply the beginning and is hoping to be able to facilitate real estate transactions with the use of PRO tokens in California, Vermont and Dubai in the coming year.
LAT, Liquid Asset Token is an interesting blockchain based platform. With the help of LAT, you can “tokenize” all of your physical assets: real estate, vehicles, and works of art. And after you have your tokenized your assets, you are able to sell shares of it.
The benefits of LAT will be more visible in high volume assets where the selling time is long because of the high price, but with the help of tokenized assets, you will be able to sell shares what can speed up the process significantly. So let say in the future you will need money and you have above average priced assets, today you would go to a bank asking for a loan, but in the future, with a tokenized asset you can sell parts of your physical assets and later buy them back
The ICO is live from the 22. of August 2017 till 29. of September 2017 and they will issue 1000000000 LATokens.
2017 was the year of ICOs, there were hundreds of successful and unsuccessful project, and these were the 3 biggest ICOs in terms of the collected capital of 2017:
Filecon, Ico ended in 7th of September it raised 257000000(!)$.
Filecon is an interesting concept, it is a decentralized cloud storage system, where you can pay for storage and get paid for providing storage.
Tezos is a new blockchain patform, the ICO ended on the 13th of July and it raised more then 230000000$. It gives a competition to ethereum because it is a similar project but with different philosophy and solutions.
EOS Stage 1 raised 185000000$ and it ended on the First of July.
It is a solution for making dAPPS (decentralized applications) better and iprove their performance. It solves the problems of today’s dAPPS including computational capacity and high user fees.
These three were only the biggest ones but there were also many ICOs with a relatively smaller amount of money raised, but seeing these number I have to say this is a start of something big!
Primalbase was launched in June of 2017, and it is the first ever shared co-working platform. It uses Waves, what is a blockchain platform similar to ethereum.
The idea behind Primalbase, is through an ICO they will sell tokens (their website is going through major upgrades, so the number of tokens are dubious but based on their bitcointalk thread 1000 for public and 250 for management) and this token will give you lifelong access to office facilities. Using the features of blockchain, these tokens will also be able to trade or leased with. It will also provide a mobile app, what you can use to manage you leasings to other users based on a peer to peer agreement.
The facilities of the company are planned to build in: London, New York, and Singapore, which makes sense because these are the most expensive cities in terms of housing prices and this solution might be able to help that.
ATLANT is one of the first real estate blockchain platforms. It offers an ethereum based altcoin or token called “ATL” ATLANT as well. It had a Pre-sale in August of 2017 and with the launch of the ATLANT network in September the the Public token sale (ICO) also started. They are planning to launch the platform in 2018.
But what is this open source platform offering? One of ATLANT’s main feature is a “blockchain based Airbnb”, so it has P2P rental network features but also offers tokenized ownership features.
It also provides a wallet application for only android (hopefully only yet), and also a very informative website.
It is an interesting project we will soon how it will work in real life.
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Blockchain has a huge potential in the real estate industry, it can solve a few fundamental problems with it. How?
Let’s talk about the problems of real estates and the solutions for them with the help of the blockchain technology.
In a word of unstable markets and the housing market is definitely an unstable market in the past years if you are a seller time is the most valuable thing for you. Why? Because knows how it will change? Will people willing to invest tomorrow? How will the prices change? Using blockchain would speed up the process by reducing the number of entities in the buying/selling process.
- Reducing the number of fraud
In the past, the customers of real estate companies used escrow and third-party verifications to reduce the chance of the possible fraud. But today thanks to the development of technology we have the opportunity to create an incorruptible, “digital ownership certificates” and store them on the blockchain, and this would significantly reduce the number of frauds.
This is one of the main features of blockchain. This is a very important aspect, because it can improve and speed up the whole process of buying/selling real estates. For example the buyers credit history and income would be instantly there, what saves a lot of time, but you can also see all of the transactions of the company. Again, fraud reducing.
This technology will be implemented soon into to the real estate industry and it will have a huge impact on it, we will see that will it make this industry to rise.
So after reading a few post, you may wonder, “How will it work ?” Well, I will try my best to explain that for you!
Every unit of property will be connected to an ID, this already exists in most of the land registry system but in our case, we would connect it to a block of the blockchain, and this is usually called SmartProperty. So your ownership will be stored safely and you will be the only one who can access it. The trade will be done by smartcontract which will be (of course) also stored in the same block to maintain the safety of it and make sure it won’t be changed. Smartcontracts are digital rules on the blockchain and it processes the agreements and conditions between sellers and buyers. This process can be done without any human interaction which makes the whole process of trading with real estates much faster and safer because of the lack of human inaccuracy or (hopefully) frauds.
ICO is an abridgment of Initial Coin Offering. It works similar to shares, so a company or in this case, basically anyone can offer some units (crypto currency or token) in exchange for other digital currencies or even for fiat money.
In the beginning of the history of ICOs these meant to found new crypto currency, but today thanks to ethereum ICOs got a wider range of projects, which are same in one way: all of them integrated a token into the idea or refreshed an old idea with implementing a token to it to maintain the advantages of blockchain.
The time of ICOs just begins hundred of ICO project were started this year and starting to get more out from this amazing technology and the advantages of it.
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