“I think that the home computers will suffer the same fate by and large as did the home movie camera. People have the idea that if they have a very good home camera then they can make very good movies. The problem is you have to have an idea. Similarly, to write a good and interesting program on the computer you have to have an idea, and ideas are hard to come by”.

In 1983, during a TV debate about the future of home computers, a college professor made that seemingly absurd statement.

However, his perspective was challenged by another speaker, who saw the potential of home computers beyond their current limitations. Here is what the second speaker had to say

“It won’t be very useful in its present form but when it starts talking to other computers throughout the whole country. When we have several million machines interconnected and people can talk to each other and exchange views, buy and sell information or services, I think it’s going to be a very interesting period where we will have an information marketplace, a new way of life”.

These two perspectives highlight the differing views that existed about the potential of home computers at the time. While one speaker focused on the challenges and limitations, the other saw the opportunities and possibilities that this technology could bring.

Today, we can see how the latter view was much closer to reality, as the internet and connected devices have become integral parts of our daily lives and transformed the way we interact and do business.

If we were to have the same debate about if blockchain technology is here to stay or if it’s just a passing fad how would it be defended

In a debate about the sustainability of blockchain technology, it can be defended by highlighting its ability to provide efficient and secure solutions for value transfer and record management. My evaluation of technology longevity is based on the simplicity and comprehensiveness of its solutions.

The widespread adoption of blockchain across various industries, despite its limitations, speaks to its potential for future growth and advancements.

The real estate industry is a prime example of blockchain’s practical applications, where it is revolutionizing property transactions and providing secure, decentralized ownership records. These advancements demonstrate the potential for blockchain technology to remain a critical player in the future.

Here is how blockchain solution in the real estate industry is advancing;

Companies in the space

Proppy

The first NFT real estate property sale was facilitated by Proppy in 2017. The property was owned by Michaell Arrington, founder of TechCrunch and is located in Kyiv Ukraine. Ownership of the property is held and recorded as an LLC and the NFT holder owns the right to the LLC and therefore the property.

Roofstock onchain

Roofstock property market made the first real estate on-chain purchase through USDC for a property located in Columbia, South Carolina.

How an NFT home sale currently works

With NFT home sale, there is no need to wait for months for underwriting, appraisals, title searches, and preparing deeds. NFT homes are fully title insured. Each home is titled in a Limited Liability Company (LLC) whose ownership is associated with the home. It is the LLC ownership that is made into an NFT.

Property platforms like Proppy use this model of keeping ownership rights via legal entities instead of person names recorded in the country’s land registries.

The unique advantage is that the land registries will have the legal entity recorded as owner not an individual name. Thus, when a property is sold, it is the legal entity that is sold.

Ownership of the entity will be changed according to the sale of the NFT and the records of change will be stored on the blockchain.

Defi lending protocols like USDC HOMES connect the real estate market with decentralized finance by enabling home buyers to secure loans on-chain for purchasing homes. They offer both secured and unsecured lending options, where ETH, BTC, and USDC can be used as collateral.

Though the home loan transactions occur on-chain, borrowers can provide off-chain credit information, such as their credit score, during the application process. Upon approval, the loan funds are utilized to purchase an LCC NFT, which is securely held in escrow until the borrower repays the loan.

Due to the efficiency of crypto networks as compared to conventional banks, several jurisdictions have amended their real estate laws to allow property purchases using crypto through authorized real estate agencies. They include Thailand, United Arab Emirates, Turkey, Portugal, Montengro, and Georgia.

United Arab Emirates

The Dubai land record authority was one of the first government agencies to put its land titles on the blockchain the transparent nature of blockchain can make it possible to trace how property changes hands.

Netherlands

The Netherlands land registry organization introduced a land registry project to test using blockchain for land registry data.

Sweden

Sweden is the most advanced country regarding the integration of blockchain with its current land registry system. It is said that utilizing blockchain within the government land registry system will save the government 106 million dollars annually as it eliminates paper work, reduces fraud, and speeds up transactions.

Republic of Georgia

The Georgia national agency in collaboration with Bitfury in 2016, started a project to create a blockchain land registry system that will allow members of the public to verify the ownership proof of property deeds securely.

India

In India, the states of Telangana and Andhra Pradesh in collaboration with advance computing development center (C-DAC), are working to update the land registry system using blockchain technology. The record of the blockchain will be made available on an open platform where anyone can see who holds what property.

Ghana

Ghana in partnership with bitland land registry system is using blockchain technology to improve land registry services for locals.

Nigeria

In Nigeria a startup (House Africa) through its blockchain based land registry, is said to have created a solution to the problems around property ownership, duplicate land titles, and fraudulent sales of property.

Ukraine

The Ukranian government is planning to make global, transparent, and secure blockchain registry after the ban on land trading due to challenges with the old system.

United Kingdom

United Kingdom government is working on a project called digital street to study the potential use of blockchain technology in land ownership registrations.

Canada

Canadian blockchain land titles and survey authority in collaboration with Digital Identity and Authentication Council of Canada (DIACC), is working out a solution to use blockchain technology for land transaction and record management throughout Canada.

United States

The Cook County Recorder of Deeds Office in collaboration with Velox, a real estate technology startup, is working towards using blockchain technology to reduce fraud, simplify land registration and create a public record that is permanent and immutable.

The integration of blockchain in real estate streamlines property transactions through secure and transparent record-keeping. The key benefits are:

1. Blockchain-based records of property information and sales history that are easily accessible and verifiable.
2. Conversion of property ownership documents into NFTs, providing clear confirmation of ownership.
3. Direct, peer-to-peer transfer of NFTs without the need for intermediaries.
4. Secure and efficient payment settlements using cryptocurrency through wallet-to-wallet transfers

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