Blockchain and Real Estate - IBREA conference
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Transcript of 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
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WHAT ARE BLOCKCHAINS?
HOW DO THEY WORK?
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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?
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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
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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....
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WHAT PROBLEMS DOBLOCKCHAINS CREATE?
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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
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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.
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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