A tour of blockchain as it intersects with real estate, smart property, smart contracts and DAOs.

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Blockchain and Real Estate:
Dawn of a New Era
B L O C K C H A I N 1 0 1 - R e a l E s t a t e
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BLOCKCHAIN
101

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WHAT ARE BLOCKCHAINS?
HOW DO THEY WORK?

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BLOCKCHAINS ARE
DISTRIBUTED, IMMUTABLE
DATABASES
They are technological infrastructure.
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They contain an historic
record of every transaction
and are easily auditable
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They are resilient due to network
power and cryptographic integrity
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Blockchains use a market mechanism to
coordinate distributed computing power
with crypto-token (digital currency)
rewards for participants
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The distributed computing power provides
certainty (via proof of work) to the data via
“confirmations” of transactions and a large
economic disincentive for malicious actors
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WHAT PROBLEMS CAN
BLOCKCHAINS SOLVE?
HOW DO THEY SOLVE THEM?

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Creating “Digital Scarcity”: making it extremely
difficult (practically impossible) to double spend
Creating immutability: blockchains are
unalterable historic records
DIGITAL UNCERTAINTY / DUPLICITY
– THE “DOUBLE SPEND” PROBLEM –
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A “trustless” system: removing the requirement
for an arbitrator for transaction settlement
3RD PARTY & COUNTERPARTY DEPENDENCY
– THE “TRUST” PROBLEM –
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OPPORTUNITIES THAT ARISE
FROM THIS TECHNOLOGY

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Blockchains as public
technology infrastructure: a
greenfield platform for
innovation.
Blockchain technology allows for
the creation of notarised
unalterable “fingerprints” of files,
which is a great tool for open,
secure and permanent record
keeping.
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Blockchain digital currencies can
be used as secure tokens for
any asset
Programmable contracts (smart
contracts) that can interact with
blockchains, or even run on
them (eg: Ethereum), allow you
to combine record keeping and
asset transfer in one application.
And More....

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WHAT PROBLEMS DO
BLOCKCHAINS CREATE?

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No real world identity: information only
Ownership becomes a matter of what you know, not what
you have
Novel asset forms
are bitcoins a security, commodity, money, etc?
What does this mean for regulators/audit/etc
ubiquitous liquidity: fixed assets embodied in divisible
crypto-tokens
Crypto-tokens are superseding
traditional regulatory frameworks
Legal sovereignty no longer a necessary requirement to
produce a currency
Borderless asset transfer
Smart contracts are incoercible
potentially in contempt of court
a new legal infrastructure
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REAL ESTATE APPLICATIONS

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Digital Titles
Reducing cost and Due Diligence associated with titles,
title insurance
Liquidity
Faster, more efficient execution = More liquidity
New funding sources (crowdfunding)
T+0 settlement times
Crowdfunding
Funding from small investors, non-traditional sources
Funding outside normal DD processes, brackets
Multi-Signature (2-of-3) Escrow
Actor #1: Buyer
Actor #2: Seller
Actor #3: Arbitrator
Blockchain: Holds funds, ensures execution outcomes
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Automating Payments
Reducing friction in receiving payments
Digital payments are “hard cash” — No bounced checks,
no chargeback fraud.
Information Veracity
Provable data sources
Better data = Better insights = Better execution
DAO
“Decentralized Autonomous Organization”
Fully automated, “lights out” management
Transparent, audible
Exciting + Regulatory challenges
Deep Data
Additional insight into properties, customers
Better investment decisions
Real time auditing, real time risk management
Maximize sales
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WORLD’S FIRST
REAL ESTATE
D.A.O.

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Thank You!
Jeff Garzik
Co-Founder | jeff@bloq.com
770-668-6133 | @JGarzik
Matthew Roszak
Co-Founder | matt@bloq.com
847-840-2356 | @MatthewRoszak
Enterprise Grade Blockchain