{"id":2135,"date":"2017-09-26T09:01:47","date_gmt":"2017-09-26T09:01:47","guid":{"rendered":"http:\/\/cryptoslate.com\/?p=2135"},"modified":"2018-05-08T14:30:38","modified_gmt":"2018-05-08T21:30:38","slug":"tokenized-real-estate-ownership-propy-vs-real","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tokenized-real-estate-ownership-propy-vs-real\/","title":{"rendered":"Tokenized Real Estate Ownership: Propy vs. REAL"},"content":{"rendered":"
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\u201cWhen faced with disruptive technologies, the most effective companies thrive by incorporating them into the way they do business.\u201d<\/i><\/span><\/p>\n<\/blockquote>\n

\u2026and in steps Blockchain,<\/i> the perfect case in point, also currently the hottest buzzword in tech. Satoshi Nakamoto introduced Bitcoin \u2013 the pioneer of cryptocurrencies \u2013 to the World in 2009; little did we anticipate the revolutionary flow-on effects of its blockchain \u201cspinal cord\u201d.<\/span><\/p>\n

Today, entities across the planet are scrambling to leverage the benefits of blockchain. Please continue reading to see how two trailblazing enterprises within the property industry, Propy<\/i> and REAL,<\/i> are embracing this exciting opportunity.<\/span><\/p>\n

What are the objectives of Propy and REAL?<\/span><\/h3>\n

Propy<\/h4>\n

<\/a>Propy<\/a> describe themselves as a \u201cglobal property store with decentralized title registry\u201d. They aim to simplify international real estate transactions by digitizing the key processes, contractual and ownership formalities.<\/span><\/p>\n

Although property has been a top preserver of wealth and also one of the choice income-generators through the ages, the largest chunk of Earthlings are excluded \u2013 for investment purposes – from participating in this $217 trillion asset class. \u00a0 \u00a0 \u00a0<\/span><\/span><\/p>\n

One major barrier to entry is the absence of a truly borderless, global infrastructure that facilitates swift processes and opens up cross-border investment opportunities to regular folk around the Globe. \u00a0 \u00a0 \u00a0<\/span><\/span><\/p>\n

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Tech Crunch founder Michael Arrington is one of the advisors to Propy.<\/figcaption><\/figure>\n

Propy\u2019s Ethereum-based blockchain platform allows users anywhere to view properties for sale, make real estate purchases online by means of smart contracts<\/i>, and pay and receive registration of ownership – all in one, fast, secure and convenient chain of digital processes. \u00a0 \u00a0 \u00a0<\/span><\/span><\/p>\n

Initially, the Platform aligns itself with existing government or state protocols and legalities surrounding property transactions, the pilot project being in California. \u00a0 \u00a0 \u00a0<\/span><\/span><\/p>\n

Ultimately, though, the Propy Registry<\/i> aims to be an approved \u201cAuthority\u201d in its own right. Put simply, once your real estate transaction and ownership is registered with Propy, it will be signed and sealed as far as the law goes, with no further requirements.<\/span><\/p>\n

REAL<\/h4>\n

<\/a>REAL<\/a> is an acronym for Real Estate Asset Ledger.<\/i> Their business concept hinges on the crowdfunding<\/i> model, where collective funds are invested in qualifying real estate assets; participants share in rental income plus the increases in property values which accrue to their chosen investment portfolios.<\/span><\/p>\n

The crowdfunding-method of property investment is currently valued at +$3.5 billion globally, forecasted to exceed $300 billion by the year 2025.<\/span><\/p>\n

A major hurdle for growth in real estate crowdfunding is the inability of international investors to participate; cumbersome cross-border processes and overseas money-transfer difficulties are some of the major barriers.<\/span><\/p>\n

REAL aim to overcome those hindrances, thereby stimulating participation trends. Their \u201cEthereum Smart-Contracts governed ecosystem,” as they fondly refer to it, makes the experience truly borderless. \u00a0Digitized property assets, contracts, and payments can be moved and exchanged globally on their blockchain in rapid and secure fashion.<\/span><\/p>\n

How does it work?<\/span><\/h3>\n

Propy<\/h4>\n

In a nutshell, the real estate purchase process on the Propy platform looks like this:<\/span><\/p>\n