Features

This article explores the various impacts Web3 has on the real estate industry. We have broken the impact into four parts, Tokenization, Decentralization, Smart Contract, and Crowdfunding, to indicate how various technologies and concepts within Web3 are changing the real estate space.

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 Web3 and decentralization are poised to revolutionize the real estate industry. Through methods like asset tokenization and smart contracts, these technologies can change how we buy, sell, and invest in property. This disruption will have lasting effects on investors and innovators in the sector. 

The concept of tokenizing real estate assets emerged as one of the earliest applications of blockchain technology. This involves the creation of digital tokens that represent ownership of specific properties or parcels of land. In 2018, the first tokenized real estate asset was successfully transacted on a blockchain platform, integrating smart contracts helped automate and streamline property transactions, as they can manage and facilitate property transfers highly efficiently.

Later, in 2019, blockchain-based peer-to-peer property rental platforms emerged, allowing individuals to directly lease their properties without intermediaries, ushering in a new era of decentralized property rental.

In recent years, many businesses and organizations have been actively exploring the potential of Web3 and blockchain technology in the real estate sector. These companies mainly tokenize real estate assets, develop decentralized property management systems, and implement blockchain technology to record and monitor land registry transactions. 

This article explores the various impacts Web3 has on the real estate industry. We have broken the impact into four parts, Tokenization, Decentralization, Smart Contract, and Crowdfunding, to indicate how various technologies and concepts within Web3 are changing the real estate space. 
 

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Tokenization of Real Assets 
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One of the most significant impacts of Web3 on real estate is the tokenization of real assets. Blockchain technology enables real estate properties to be divided into digital tokens, making it easier for individuals to invest in property ownership. This fractional ownership model democratizes access to the real estate market, allowing small investors to participate in lucrative markets that were once exclusive to the wealthy.

Tokenization also enhances liquidity in real estate markets. Property owners can sell their tokens more efficiently, reducing the time and costs associated with traditional real estate transactions. Additionally, smart contracts embedded in these tokens automate property management processes, such as rent collection and property maintenance, further reducing administrative overhead. <a href="https://coinmarketcap.com/currencies/propy/#Markets" style="text-decoration:none;">Propy</a> is an example of a blockchain-based project allowing buyers, sellers, and other stakeholders to securely store and oversee title records using the Ethereum blockchain, representing a shift in how projects integrate Web3 technology within real estate. 
 

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	<li style="list-style-type:decimal;">Decentralized Property Records</li>
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The current real estate industry heavily relies on centralized property records maintained by government authorities. However, these systems are often prone to errors, fraud, and inefficiencies. Web3 introduces the concept of decentralized property records stored on a blockchain – ensuring more transparency and security. 

Transactions are recorded immutably, reducing the risk of fraud and disputes. Buyers and sellers can easily verify property history and ownership, eliminating the need for intermediaries like more prominent companies.

 

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	<li style="list-style-type:decimal;">Smart Contracts for Rental Agreements </li>
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Web3 technology brings the concept of smart contracts to real estate rental agreements. Real estate rental payments, security deposits, and lease renewals can be automated through smart contracts.

These contracts save time, reduce administrative burdens, and enhance trust between landlords and tenants. Disputes can be minimized as the terms are transparent and enforced automatically based on predefined conditions.

 

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	<li style="list-style-type:decimal;">Property Crowdfunding and Decentralized Finance (DeFi) </li>
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Web3 opens up opportunities for property crowdfunding, where individuals can pool their resources to invest in real estate projects. These crowdfunding platforms utilize blockchain technology to create transparency and distribute profits among investors seamlessly. Moreover, integrating decentralized finance (DeFi) in real estate allows for lending, borrowing, and trading real estate assets without relying on traditional financial institutions.

Web3 technologies are ushering in a new era for the real estate industry. Tokenization, decentralized property records, smart contracts, and property crowdfunding are examples of how Web3 disrupts and revolutionizes how we buy, sell, and manage real estate.  
 

Final Remarks

While these innovations bring exciting possibilities, they pose regulatory challenges and require industry stakeholders to adapt to this new digital landscape. As the real estate industry embraces Web3, balancing innovation and regulation is crucial to ensure a secure and transparent marketplace for all participants. Nonetheless, there's no denying that Web3 is shaping the future of real estate, making it more accessible, efficient, and inclusive for everyone.
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Web3 Impact on the Future of Real Estate

In this Feature, we will dive deeper into real-world asset tokenization and how it works; we will also lay out some concrete examples and their benefits and risks. 

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In recent years, cryptocurrencies have been the most common tokenized assets. However, with the expansion of blockchain technology, real-world asset (RWA) tokenization has become more common, especially within the financial industry. For example, <a href="https://www.coindesk.com/business/2023/04/14/tokenization-of-real-world-assets-a-key-driver-of-digital-asset-adoption-bank-of-america/" style="text-decoration:none;">Bank of America called RWA tokenization a “key driver of digital asset adoption” and reported that the tokenized gold market had captured over $1 billion in investment. </a>With this growing demand, more institutional investors and traditional financial companies enter the space through tokenized treasury bonds, stocks, fiat currencies, real estate, and more. 
 
Tokenization bridges the gap between traditional and digital assets by bringing tangible assets onto blockchain networks. In this Feature, we will dive deeper into real-world asset tokenization and how it works; we will also lay out some concrete examples and their benefits and risks. 

<h2 class="customH2" style="line-height:1.38;background-color:rgb(255, 255, 255);">Understanding Real-World Asset (RWA) Tokenization?</h2>

Tokenizing assets transforms physical or digital assets into digital tokens using a distributed ledger or blockchain. The concept behind real-world asset tokenization allows a digital investment to be created on the blockchain from an originally tangible asset, such as stocks, bonds, real estate, currencies, and other commodities. 

<h2 class="customH2" style="line-height:1.38;background-color:rgb(255, 255, 255);">How does Asset Tokenization Work?</h2>

At its core, asset tokenization stores tangible assets as digital tokens on a blockchain. These tokens are digital representations of ownership, secured by blockchain technology, making transactions secure, efficient, and transparent. The process splits assets into smaller units, increasing their tradability and liquidity. 

These digital tokens are generated with scarcity through blockchain technology. This enhances the trading process, increases capital circulation around assets, stabilizes price, and simplifies buying and selling assets in larger quantities. Additionally, blockchain empowers users to oversee and control their tokens.

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<a href="https://chain.link/education-hub/asset-tokenization" style="text-decoration:none;">Image Source: Chainlink</a>

<h2 class="customH2" style="line-height:1.38;background-color:rgb(255, 255, 255);">Examples of RWA Tokenization</h2>

As aforementioned, RWA tokenization is already spread across several industries; 

For example, tokenizing tangible assets, such as fiat currency, equities, credit, commodities, carbon credits, intellectual property, and fine art, involves converting them into digital tokens and storing them on a blockchain. These tokenized assets grant holders ownership rights to be securely stored, traded, and utilized as collateral across various blockchain networks. 

In comparison to real-world and tangible tokenization, the tokenization of digital assets tokenizes assets that exist in digital form on a blockchain network. This process is crucial for applications representing governance rights in Decentralized Autonomous Organizations (DAOs) and facilitating cross-chain assets. Furthermore, in-game asset tokenization utilizes assets within GameFi projects or metaverses, such as skins, weapons, or in-game currencies, that can be transformed into tokenized representations.

A company that is backing asset tokenization is <a href="https://structure.fi/" style="text-decoration:none;">Structure.fi</a>. The project provides assets supported by equity, including the complete S&amp;P 500 index. The tokens on their platforms enable seamless integration of tangible assets into the offerings of exchanges, DeFi protocols, wallets, and other web3 applications, all following regulations and requiring minimal implementation exertion.

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<a href="https://structure.fi/" style="text-decoration:none;">Image Source: Structure.fi</a>

<h2 class="customH2" style="line-height:1.38;background-color:rgb(255, 255, 255);">Benefits and Risks</h2>

Tokenization offers various benefits, starting with amplified liquidity for assets that have traditionally been difficult to trade due to their illiquid nature. This newfound liquidity stems from the increased accessibility and tradability that tokenization brings. Moreover, tokenization is more cost-efficient as it removes intermediaries from transactions, thus reducing overall transaction costs. Furthermore, implementing automated smart contracts amplifies operational efficiency, streamlining the complex transaction settlement and clearance processes.

However, certain risks come with tokenization. The evolving legal frameworks surrounding tokenized assets result in regulatory uncertainty. Additionally, tokens introduce liquidity risks that could impact the rapidity with which tokens can be sold. Another risk lies in valuing specific tokens, particularly utility tokens, given their unique characteristics, adding a layer of uncertainty to the valuation process. 

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<h2 class="customH2" style="line-height:1.38;background-color:rgb(255, 255, 255);">The Future of RWAs</h2>

The future of tokenization is promising. Market projections are optimistic, with forecasts suggesting that the tokenized asset market could grow to<a href="https://www.coindesk.com/markets/2023/07/25/avalanche-foundation-commits-50m-to-bring-more-tokenized-assets-to-blockchain/" style="text-decoration:none;"> $16 trillion by 2030.</a>  As real-world asset tokenization represents a shift in the financial landscape, real-world asset tokenization is poised to reshape how we view and engage with investments and ownership. 
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Tokenization of Real World Assets

With the recent introduction of digital art and NFTs stored on the blockchain, the concept of royalties has taken a turn. This featured article dives deeper into the concept and how artists are making fair royalties since the introduction of blockchain technology. 

What are NFT Royalties & Crypto Projects in the Space

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Blockchain technology has revolutionized various industries, and the role of blockchain infrastructure companies has become increasingly vital. These companies serve as the backbone, offering essential tools and resources for individuals and organizations to utilize and engage with blockchain platforms and cryptocurrencies. This article will explore the top infrastructure projects in the crypto space: <a href="https://mystiko.network/" style="text-decoration:none;">Mystiko Network</a>, <a href="https://www.biconomy.io/" style="text-decoration:none;">Biconomy</a>, and <a href="https://supraoracles.com/" style="text-decoration:none;">SupraOracles</a>. 

These projects are revolutionizing privacy, transaction management, and data accessibility, respectively, and are instrumental in advancing the adoption of blockchain technology and cryptocurrencies.

<h3 style="line-height:1.38;margin-top:21px;margin-bottom:5px;">Mystiko Network:</h3>

<a href="https://mystiko.network/" style="text-decoration:none;">Mystiko.Network</a> introduces a trustless-but-verified privacy protocol to enhance blockchain privacy. With the first decentralized auditing system for on-chain private transactions, the platform ensures user privacy while auditing suspicious deposits. This innovative approach guarantees security, prevents tampering, and ensures decentralization.

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 The auditable zero-knowledge (zk) privacy solution of Mystiko.Network combines encryption and an audit function. Transaction information is split into encrypted shares held by auditors, preventing unauthorized access. Through majority votes, the auditing committee can decrypt and review encrypted transaction history. The latest version, "AuditableZK," enhances security, reduces gas fees, and supports multi-chain and cross-chain private transactions.

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 Mystiko.Network's commitment to protecting on-chain privacy and fostering a healthy financial privacy environment establishes its significance in the blockchain industry. As the base layer of Web3, it combines connectivity and confidentiality using zero-knowledge-proof technology. Advancements in privacy and interoperability position Mystiko.Network at the forefront of on-chain privacy, enabling secure engagement with blockchain technology.

<h3 style="line-height:1.38;margin-top:21px;margin-bottom:5px;">Biconomy:</h3>

<a href="https://www.biconomy.io/" style="text-decoration:none;">Biconomy</a> is a multichain relayer protocol that improves the user experience and onboarding process in decentralized applications (DApps). It addresses web3 bottlenecks by enabling gas fee-free user onboarding, allowing users to pay gas fees with their preferred ERC-20 tokens, simplifying blockchain complexities, and facilitating faster transaction confirmations.

<img height="296" src="https://coinfyi-uploads-production.s3.eu-central-1.amazonaws.com/posts/1178903/1689848951194" width="624">

The protocol focuses on transaction management and gas optimization, resulting in up to 40% reduction in gas costs. By leveraging meta transactions, users can submit transactions with zero gas and have a third party cover the fees. Biconomy's relayer infrastructure operates in a non-custodial and efficient manner, supporting the scalable implementation of these solutions.

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Leading protocols such as Curve Finance, Perpetual Protocol, Decentral Games, and Sapien Network have already integrated Biconomy's relayer infrastructure. These integrations enable gasless transactions, feeless gaming experiences, and seamless transactions on the social blogging platform. By improving usability and accessibility in DApps, Biconomy contributes to the broader adoption of blockchain technology in a user-friendly manner.

<h3 class="customH3" style="line-height:1.38;">SupraOracles:</h3>

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<a href="https://supraoracles.com/" style="text-decoration:none;">SupraOracles</a> bridges blockchains and external data sources, enabling decentralized applications (dApps) to access off-chain information. The project’s infrastructure is a robust cross-chain oracle network that empowers dApps across various blockchain ecosystems. The network offers fast, secure, decentralized, and scalable data solutions. Whether in decentralized finance (DeFi) or GameFi, providing the necessary data feeds and connections enables Web3 to reach its full potential.

Key advantages of SupraOracles include fast and secure data delivery. The infrastructure can handle high data volumes, ensuring reliable transmission. Through decentralization, SupraOracles mitigates single points of failure, enhancing data feed security and resilience.

<a href="https://supraoracles.com/docs/vrf" style="text-decoration:none;"><img height="275" src="https://coinfyi-uploads-production.s3.eu-central-1.amazonaws.com/posts/1178903/1689848951151" width="624"></a>

SupraOracles supports multiple blockchain ecosystems, enabling dApps to access data from various chains. This flexibility empowers developers to create cross-chain applications and unlock new opportunities for innovation. By bridging the gap between blockchains and real-world data sources, SupraOracles opens countless possibilities in decentralized finance, gaming, supply chain management, and more.

Final Remarks:

The top infrastructure projects in the crypto space, including Mystiko Network, Biconomy, and SupraOracles, play a vital role in advancing the adoption of blockchain technology and cryptocurrencies. Mystiko.Network revolutionizes privacy with its decentralized auditing system, while Biconomy simplifies user experiences and reduces gas costs. SupraOracles enables dApps to access off-chain data, bringing real-world information to blockchain applications. These projects exemplify the innovation and progress within the crypto infrastructure sector, driving the adoption of blockchain technology and shaping the future of decentralized applications.

 
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3 Promising Infrastructure Projects: Mystiko, Biconomy, SupraOracles 

As zero-knowledge technology expands beyond scaling EVM-based blockchains and emerges as a prominent topic in the crypto space, we are delving deeper into zkLink. This infrastructure project ingeniously applies this revolutionary technology to a new business scenario: multi-chain interoperability.

Everything You Need To Know About zkLink

Top 5 DeFi Projects: Exploring XDEFI Wallet, Injective, Hashflow, Chainflip, and Paraswap

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 Data has emerged as <a href="https://www.economist.com/leaders/2017/05/06/the-worlds-most-valuable-resource-is-no-longer-oil-but-data" style="text-decoration:none;">the world's most valuable commodity in today's digital era, surpassing even oil, according to The Economist</a>. As we approach the advent of web3, our reliance on data has grown exponentially, shaping how we interact with technology and the digital world. Data has emerged as a critical factor in the crypto space. With the rise of digital assets and their impact on various industries, data-driven insights have become invaluable. 

In this article, we delve into the significance of data in the crypto space – with an in-depth focus on <a href="https://www.itheum.io/" style="text-decoration:none;">Itheum</a>, an innovative company spearheading the use of data in the Web3 domain.

<h2 class="customH2">The Underlying Issue</h2>

Collecting and utilizing personal data have given rise to significant concerns and controversies. Much of the data collected is stored in centralized servers without users' explicit consent, making it vulnerable to data breaches. This creates a challenging situation, as our modern world relies heavily on data while users rightfully raise concerns about its usage. Navigating this dilemma can be complex. However, the emergence of various projects like Itheum and the decentralization of web3 technology offers a promising solution.

<h3 class="customH3">Itheum - “Your Data Belongs to You”</h3>

Itheum addresses the growing demand for data privacy and ownership, providing users a secure and decentralized platform to manage their personal information. By leveraging blockchain technology, Itheum ensures that data is stored in a transparent and immutable manner, reducing the risk of unauthorized access and data breaches.

With Itheum, users regain sovereignty over their data, determining how it is shared, utilized, and monetized. This empowers individuals to participate actively in the data economy, as they can choose to share their data with trusted entities in exchange for rewards or incentives. By placing the control back in the hands of users, Itheum aims to establish a new paradigm where data becomes a tool for individuals to benefit from its usage rather than being exploited by centralized entities.

For example, Itheum’s Claims Portal is an integral part of distributing data and token rewards, community testing rewards, and data trading fees. Without it, direct exchange between Data Consumers and Creators would halt the ecosystem's potential growth. The Claims Portal handles two types of transactions:

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Data Trading Distribution: Data Creators and the Data Coalition DAO exchange data using $ITHEUM tokens. The tokens are distributed to all participants (Board members, DAO-aligned Data Creators, and Members) through a multicast process. Data is collected on DAO smart contracts, deposited into the DC Fund Pool, and distributed via the Claims Portal to all recipients 
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Community Guardians and Data-Market Makers Distribution: Out of the 4% fee collected from data trades coordinated by Data DEX smart contracts, 2% is indirectly multicast distributed through the Claims Portal. 1% goes to the community of guardians of the Itheum Protocol, and the other 1% is allocated for ecosystem growth through the Data Partners Program.
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<h3 class="customH3" style="line-height:1.38;">Itheum Utilizes The Power of Data in Crypto</h3>

Crypto operates on the principles of decentralization and transparency, resulting in vast amounts of data being recorded and analyzed. Unfortunately, some organizations take advantage of their data and sell it to third-party brokers. These shadowy entities thrive in the personal data trade, generating millions of dollars in profit by packaging and selling your data to other organizations. <a href="https://dev.to/itheum/itheum-data-dex-whitepaper-ooo#intro-1" style="text-decoration:none;">With over 4,000 data brokers worldwide, each gathering around 3,000 data points per individual, the data brokerage industry rakes in a staggering $200 billion annually.</a> 

The situation becomes even more unsettling as our increasingly digitized world gives rise to the hyper-digitized "Metaverse," where data generation will soar exponentially. This new data will be harvested from us, intensifying the need for a solution that empowers individuals and respects their data ownership.

Itheum's focus on privacy protection ensures that users' personal information remains confidential and secure. Through encryption and other advanced security measures, Itheum safeguards sensitive data from unauthorized access, mitigating the risks associated with centralized data storage. Recently, Itheum announced a partnership with <a href="https://bwarelabs.com/" style="text-decoration:none;">Bware Labs</a>, a leading decentralized infrastructure service provider, to integrate resilient and high-speed infrastructure services into the Itheum protocol. This collaboration aims to enhance data ownership and identity in the Web3 and Open Metaverse ecosystems by incorporating Bware Labs' innovative technologies.

As part of the partnership, Itheum will integrate <a href="https://blastapi.io/" style="text-decoration:none;">Blast API</a>, Bware Labs' flagship product, into its multi-chain protocol platform. The integration enables Itheum to provide a seamless lookup and aggregation of on-chain user data, empowering web3 users active on multiple blockchains to take ownership of their data and identity through the Itheum protocol. Users can participate in products like the Web3 Passport, share data and identity with consent, and earn rewards.

This partnership between Itheum and Bware Labs represents a significant step towards enhancing data ownership and identity in the Web3 and Open Metaverse ecosystems.  
 
Final thoughts

While data plays a pivotal role in our modern society, concerns about its misuse and lack of user consent have led to a complex dilemma. Itheum emerges as a promising project that addresses these concerns by providing users with control over their data and the opportunity to benefit from sharing it. Through projects like the Itheum platform, we recognize the importance of empowering individuals in the data economy and fostering a more secure and user-centric digital landscape.
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