Bringing Real Estate On The Blockchain – XR Web 3.0 — Decentralised Protocol of XR Apps on Web 3.0 – Medium

Bringing Real Estate On The Blockchain – XR Web 3.0 — Decentralised Protocol of XR Apps on Web 3.0 – Medium
Bringing Real Estate On The Blockchain – XR Web  — Decentralised Protocol of XR Apps on Web – Medium

best asset an investor can hold for a long period of time. However, despite living in this digital age the property industry has not experienced digitization of this asset class. This, together with other inherent problems has led to a high barrier to entry for retail investors who want to invest in properties.

This article looks into the problems that still exist in this industry, how Blockchain technology can be a good solution, and why you should keep an eye on the XR Web project.

Existing Problems In A Mature Industry

Multiple Hidden Costs

How much do you think middlemen cost?

Think that the price of a property is the only cost you have to bear? You might want to think again. Purchasing a piece of property involves multiple costs, such as lawyer fees, interest rates from taking a bank loan and broker fees, etc. And this is assuming you are purchasing a property in your country.

If you intend to buy property overseas you will incur additional charges when exchanging currencies, additional broker fees, overseas attorney fees and higher taxes charged by the local government.

A Market With Low Liquidity

Assuming that you have managed to buy property for investment, can you sell it off in the event that you need cash immediately?

Low liquidity is a problem that all property owners face, with the sale process taking months and maybe even years in a number of cases. The pool of eligible buyers is small, as only one or a few individuals can buy a property on the market, with the buyer needing to have a strong credit rating to meet the requirement. This gives owners a small window of opportunity to take advantage of any property price hikes.

How Can Blockchain Be The Solution?

Blockchain Technology is a distributed ledger where every transaction on the network is open and transparent for all to see. This distributed ledger is secured by multiple nodes that can be seen as mini servers, and any changes to the ledger require consensus from at least 51% of the nodes in the network. These features make Blockchain a natural solution to tackle the issues that currently exist in the Real Estate industry.

Another important aspect of Blockchain is the tokenization of assets it facilitates. For example, instead of selling your property to only one buyer, the ownership of the property can be divided up and represented by tokens. This makes the real estate market a lot more liquid than tNo matter what type of assets you hold for investment, it is hard to argue that property is one of if not the current state.

To sell a property on the Blockchain only requires the transfer of tokens, possibly eliminating many middlemen in the process. To ensure a smooth and transparent process, this transfer of tokens is done through a smart contract. Under a smart contract, only after a set of predetermined conditions are fulfilled will the tokens be transferred.

Welcoming The Future: Real Estate On The Blockchain
With a more liquid market, we can expect more retail investors to enter the real estate market. In addition to smoother buying and selling transactions, there are other innovative models that can be pursued, such as an “Airbnb-like” model on the Blockchain.

For example, a family that rented an apartment can transfer the tokens to a smart contract as a deposit. Once they have completed their stay their tokens will be automatically transferred from the smart contract to the home owner’s wallet. Both parties pay fewer transaction fees due to the removal of the middleman and they do not need to trust each other to carry out the operation.

XR Web- Property On Extended Reality

XR Web is a project that integrates Blockchain, Augmented Reality (AR) and Virtual Reality (VR) Simply put, they are creating an extended reality whereby you can own property in this new world and earn the platform’s native token by renting out this property.

To illustrate this with an example, imagine that you are standing outside your favorite restaurant in the city. By scanning the restaurant with the app you are able to see that this property on the extended web has not been purchased yet. By buying this property you are able to earn from ad revenue obtained from user viewing ad placed on your property.

Any transactions that happen on the network are open and transparent to users, reducing the likelihood of any conflict in ownership of property. Furthermore, due to the nature of tokenization, there can be multiple owners of a property on the extended web with higher liquidity levels. For more information, please read the XR Web Whitepaper.

Visit XR Web Today!

Source link