Blockchain and Real Estate - IBREA conference

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Blockchain and Real Estate:Dawn of a New Era

B L O C K C H A I N 1 0 1 - R e a l E s t a t e

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BLOCKCHAIN101


WHAT ARE BLOCKCHAINS?

HOW DO THEY WORK?


BLOCKCHAINS ARE DISTRIBUTED, IMMUTABLE DATABASES They are technological infrastructure.

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They contain an historic record of every transaction

and are easily auditable

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They are resilient due to network power and cryptographic integrity

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Blockchains use a market mechanism to coordinate distributed computing power

with crypto-token (digital currency) rewards for participants

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The distributed computing power provides certainty (via proof of work) to the data via “confirmations” of transactions and a large economic disincentive for malicious actors

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WHAT PROBLEMS CAN BLOCKCHAINS SOLVE?

HOW DO THEY SOLVE THEM?


Creating “Digital Scarcity”: making it extremely difficult (practically impossible) to double spend

Creating immutability: blockchains are unalterable historic records

DIGITAL UNCERTAINTY / DUPLICITY – THE “DOUBLE SPEND” PROBLEM –

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A “trustless” system: removing the requirement for an arbitrator for transaction settlement

3RD PARTY & COUNTERPARTY DEPENDENCY – THE “TRUST” PROBLEM –

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OPPORTUNITIES THAT ARISE FROM THIS TECHNOLOGY


Blockchains as public technology infrastructure: a greenfield platform for innovation.

Blockchain technology allows for the creation of notarised unalterable “fingerprints” of files, which is a great tool for open, secure and permanent record keeping.

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Blockchain digital currencies can be used as secure tokens for any asset

Programmable contracts (smart contracts) that can interact with blockchains, or even run on them (eg: Ethereum), allow you to combine record keeping and asset transfer in one application.

And More....


WHAT PROBLEMS DOBLOCKCHAINS CREATE?


No real world identity: information onlyOwnership becomes a matter of what you know, not what you have

Novel asset forms are bitcoins a security, commodity, money, etc? What does this mean for regulators/audit/etc ubiquitous liquidity: fixed assets embodied in divisible crypto-tokens

Crypto-tokens are superseding traditional regulatory frameworksLegal sovereignty no longer a necessary requirement to produce a currency Borderless asset transfer

Smart contracts are incoerciblepotentially in contempt of court a new legal infrastructure

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REAL ESTATE APPLICATIONS


Digital Titles

Reducing cost and Due Diligence associated with titles, title insurance

LiquidityFaster, more efficient execution = More liquidity New funding sources (crowdfunding) T+0 settlement times

Crowdfunding

Funding from small investors, non-traditional sources Funding outside normal DD processes, brackets

Multi-Signature (2-of-3) EscrowActor #1: Buyer Actor #2: Seller Actor #3: Arbitrator Blockchain: Holds funds, ensures execution outcomes

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Automating Payments

Reducing friction in receiving payments

Digital payments are “hard cash” — No bounced checks, no chargeback fraud.

Information VeracityProvable data sources Better data = Better insights = Better execution

DAO

“Decentralized Autonomous Organization” Fully automated, “lights out” management Transparent, audible Exciting + Regulatory challenges

Deep DataAdditional insight into properties, customers Better investment decisions Real time auditing, real time risk management Maximize sales

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WORLD’S FIRST REAL ESTATE

D.A.O.


Thank You!

Jeff Garzik Co-Founder | [email protected] 770-668-6133 | @JGarzik

Matthew Roszak Co-Founder | [email protected]

847-840-2356 | @MatthewRoszak

Enterprise Grade Blockchain

Blockchain and Real Estate - IBREA conference

Economy & Finance