A push towards fractionalized asset ownership is seen across the globe in order for the masses to become active participants in the real estate sector and for the system to be truly inclusive with blockchain.
The idea of combining real estate and blockchain is the next big thing this decade, and there’s still plenty of opportunity for development.
The Case for Cryptos
Cryptocurrencies are digital or virtual tokens that encrypt their transactions via cryptography. Without the interference of any government entity, this decentralized and digital transaction validation system can perform and facilitate thousands of interactions each minute.
Furthermore, its powerful ledger mechanism publishes total and individual account balances multiple times each hour and distributes them throughout the whole network like a newspaper, making the ledger unchangeable once published. Without a doubt, the financial system’s monopolistic contractors were outraged.
Financial Crisis
The global economy collapsed as a result of the financial crisis of 2007–2008. The housing market collapsed, equities plummeted, people lost their life savings, and the global banking system was bailed out with billions of dollars in government funds. This was the final nail in the coffin for centralized financial institutions’ credibility.
Simultaneously, percolating beneath the surface of this global economic meltdown was a unique method to resolving the system’s issues. To store and exchange financial value, an internet-native cryptographic network validated by thousands of decentralized participants had formed.
The Road Ahead
It’s understandable that entrepreneurs and venture capitalists believe the real estate market is ripe for upheaval. The number of PropTech start-ups has increased significantly in recent years, with the goal of seizing the opportunity and being a part of this disruption.
We’re seeing a new generation of real estate entrepreneurs emerge, from Zameen to Graana to Ilaan, who claim to be challenging the current quo.
DAO PropTech, for example, is a ground-breaking end-to-end digital network that connects producers, investors, and users of modern real estate assets.
It is employing blockchain technology to provide Pakistan’s real estate sector with much-needed transparency, affordability, and inclusion.
Abdullah Khan, the company’s co-founder and chief technology officer, spoke with us about cryptos, the future of PropTech, and the Pakistani real estate business.
He observed, “Crypto’s Achilles heel will always be its lack of legal legitimacy. We believe this system based on anarcho-capitalism is not viable since societies currently cannot function without any governance structures at all.
While cryptos will always remain at odds with the governments, as they pose a threat to the existing monetary system, they have proved blockchain technology to be the next big revolution in data recording and transparency.
Backed by blockchain, real estate can not only be tokenized but transactions can be sped up, removing the high barriers to entry, and providing faster liquidity. This opens up the real estate arena to a new generation of investors; young professionals and middle-class workers, for whom real estate investing was but a dream.
Real estate transactions recorded on blockchain also give a fool-proof record-keeping mechanism that cannot be tampered with, giving the power back to the people. We envision the real estate market becoming more data-driven; Investors and owners leveraging data to make informed decisions.
PropTech has the potential to disrupt real estate; one of the world’s oldest and largest industries. We should expect to see many new PropTechs and PropFinTech’s emerge.”
To read our blog on “Pakistan’s president calls for training in blockchain technology,” click here.
