Blockchain Technology Reshaping the Real Estate Market: The Era of Purchasing Homes with Encryption Assets Has Arrived

Recently, a senior expert in the real estate industry shared her bold vision for the future of the real estate sector during a podcast interview. As a professional with 15 years of experience in real estate development and also a software engineer, this expert has deep insights into the pain points of traditional property transactions. She stated: "In the next ten years, you may only need a few clicks to purchase properties online around the world, making the entire process fast, low-cost, and free from fraud concerns." Although this vision sounds quite futuristic, she believes that such changes are already beginning to emerge, driven by technological advancements and market demands.

Cross-border Innovation between Engineers and Real Estate Experts

For a long time, the real estate market has been constrained by high transaction costs, lengthy transfer processes, and an endless array of fraud risks. Traditional home buying processes often involve cumbersome contract signings, bank loan approvals, property registrations, and multiple other steps, resulting in transaction cycles that can last for months. At the same time, issues such as property fraud, identity theft, and fund transfer scams have caused significant losses for home buyers, making this market fraught with uncertainty. With the increase in cross-border property transactions, these risks have also expanded globally. During the digital transformation process, the collision between traditional paper document management methods and new technologies has exacerbated identity theft and fund transfer risks, making the market even more uncertain.

In response to these industry challenges, an innovative company has emerged. As a dual-expert with a deep understanding of the real estate development ecosystem and the underlying logic of Blockchain, this founder leads the team in developing groundbreaking solutions. They have constructed a decentralized property management system based on smart contracts, achieving multiple innovations through Blockchain technology:

• Automation: The system can automatically execute transaction terms, verify property ownership and fund flow in real-time, significantly shortening the transaction cycle.
• Security and Transparency Mechanism: The distributed ledger technology of Blockchain ensures that all transaction processes are open and transparent, preventing information tampering and fraudulent activities.
• Real-time Tracking Throughout the Process: Each transaction step is recorded on the Blockchain, allowing relevant parties to view the transaction progress at any time, effectively reducing the risk of human error.

Currently, the platform has processed over $4 billion in transaction volume. Through its innovative property tokenization scheme, the platform has successfully made complex cross-border real estate investments as simple as sending an email. From Bitcoin mortgages to property tokenization, this company is reshaping the way the real estate market operates, opening a new era for global buyers.

Create two types of buyer home purchasing models, using Blockchain and traditional processes simultaneously.

So, how does this company specifically make buying a house easier? They offer two purchasing methods to meet different user needs.

The first type is aimed at users who are already familiar with cryptocurrency; the whole process is very simple. As the founder said: "For users accustomed to using cryptocurrency, as long as they connect their digital wallet and click a few times with the mouse, they can buy a house, provided that the house has been converted into a digital asset by us." This method shortens the home-buying process, which originally took several months, to just a few minutes.

For example, in January of this year, the company launched a new loan product that supports the purchase of a Hawaiian apartment using collateralized encryption assets. The starting price for this apartment is 250,000 USDC. Since the entire transaction is conducted on the Blockchain, buyers no longer have to go through the traditional 30-day transaction process and can almost complete the transaction immediately. By February 2, the house was sold — the buyer obtained a loan through collateralizing Bitcoin to complete the purchase. The founder detailed this innovation: "In the transaction we completed last month, a buyer holding Bitcoin was able to bid for the property without having to sell their Bitcoin. We believe Bitcoin is a great collateral; you can use it to invest in other assets. In this transaction, if you have $250,000 worth of Bitcoin, once you successfully bid, you can immediately obtain a Bitcoin-based loan without any review, and without waiting for the traditional bank's 30-day loan approval, allowing you to become a homeowner right away."

Of course, not everyone is willing to completely abandon traditional home buying methods. The second method combines the traditional real estate transaction process with innovative technology, suitable for users who still prefer traditional home buying methods. The founder explained: "In fact, our most popular method is still relatively traditional. We have specialized property rights and custody companies, you need to sign a home purchase contract, and then our artificial intelligence system will immediately process this contract and start the transaction process. Even at night or on weekends, the transaction can be initiated immediately." This method retains some key steps of traditional home buying, but greatly improves efficiency through technological means.

Realizing property tokenization and introducing an encryption mortgage mechanism

There are many benefits to purchasing digitized real estate on this platform, the most obvious being the fast transaction speed and ease of liquidation.

The founder emphasized: "The advantage of tokenized assets is that you can purchase them immediately, obtaining ownership of real estate in just a few minutes. They are more liquid, so you can also sell them within an hour or a day, simply by initiating an auction on our RWA market." This high liquidity fundamentally changes the characteristics of real estate as an investment category, bringing it closer to the trading experience of other financial assets. In the future, some RWA trading platforms may support real estate transactions. Currently, these platforms do not yet require KYC and AML certification, but as regulations adjust, real estate tokenization is expected to become mainstream.

At the same time, the company is exploring the possibility of fractional ownership in real estate. The founder explained that by further splitting NFTs, multiple buyers can jointly own a property and allocate rights according to their shares. However, since such transactions fall under the category of securities, documents must be filed with the U.S. SEC.

The founder pointed out that the process is relatively complex, taking about four months to complete, and the transparency requirements for SEC filings make it more like a small IPO, with higher costs. Therefore, it is more challenging to implement for small properties, but from a technical perspective, it is still feasible. She believes that although the current threshold is high, fractional ownership of real estate will be one of the future development directions of real estate tokenization.

Of course, the company is also continuously optimizing platform features to enhance user experience and meet the rapid changes in market demand. In the future, users will be able to manage real estate NFTs independently through the platform or wallet, thereby increasing their control over assets and further lowering transaction barriers.

In terms of property rights management, the company ensures compliance with local laws and regulations and has established a property transfer verification mechanism. Users can choose to sell through traditional means, maintaining compatibility with the traditional market to meet the needs of conservative investors; they can also choose to transfer tokenized ownership on the Blockchain for fast, low-cost transactions, gaining access to global liquidity opportunities.

In addition, the company has launched an innovative cryptocurrency mortgage model, providing a new option for investors who are unwilling to sell their crypto assets. Its loan model accepts Bitcoin, XRP, or Ethereum as collateral. According to the founder: "Our most recent transaction used Bitcoin as collateral, it was a two-year loan with an interest rate of 10%, with monthly repayments. It operates similarly to a mortgage, but the main advantage is that it does not require the lengthy 30-day mortgage approval process, making this model particularly suitable for investors who primarily hold crypto assets, as traditional financial institutions often do not recognize the collateral value of crypto assets."

In terms of repayment, the platform supports repayments in multiple cryptocurrencies, offering flexible repayment terms. Users can choose to repay early without incurring penalties, while interest rates are dynamically adjusted based on market conditions. To manage risk, the platform has implemented comprehensive risk management measures, including real-time monitoring of Bitcoin price fluctuations, establishing a margin call mechanism, providing smart contract automatic liquidation protection, and setting up a professional risk assessment team.

It is worth mentioning that the founder also proposed a future vision of Bitcoin as collateral for property investments. She stated: "I believe that in the future, Bitcoin will become a high-quality collateral, allowing users to access other asset classes. Just imagine, you can automatically obtain on-chain loans based on your Bitcoin holdings, without credit checks, and without going through the traditional mortgage approval process that can take up to 30 days."

This decentralized finance (DeFi) + real estate model will make real estate transactions more efficient, enhance liquidity, and provide investors with unprecedented freedom. With the company's ongoing innovations, the real estate market is moving towards a smarter, decentralized new era.

In addition, the company has deployed a multi-layered security mechanism to prevent fraudulent activities. The founder pointed out: "If fraudulent activities occur, our AI or other means may detect them, and we will report these fraudsters to the FBI and all relevant service agencies according to the current rules of the property rights industry, and re-record the contracts." This multi-layered security mechanism significantly reduces the risk of fraud in property transactions, providing users with a more secure trading environment.

The acceleration of regulatory and institutional processes promotes transformation

Looking ahead, the company is confident in the digital transformation of the real estate industry and has always maintained active collaboration with regulatory and financial institutions to ensure the compliance and scalability of its solutions.

At the regulatory level, the company actively cooperates with government agencies' policy adjustments to promote the legalization process of real estate tokenization. The founder mentioned: "Currently, institutions like the SEC are studying fractional ownership of real estate on the blockchain and how to allow more citizens to invest, as this is clearly a type of security. I always advise all real estate operators and owners entering the tokenization field to follow SEC rules and register under Reg D, Reg A, etc."

At the same time, the regulatory environment is evolving in a more positive direction. The founder pointed out: "After multiple dialogues with legislators, I have also seen their willingness to actually relax securities laws for certain assets, especially those backed by real estate and other assets." This shift in regulatory attitude will pave the way for further development of Blockchain real estate, allowing more people to enjoy the conveniences brought by this innovative technology.

As blockchain real estate gradually enters the mainstream, institutional adoption is also showing positive signals. The founder pointed out: "About a week ago, a certain trading platform tweeted about how they would become a platform for purchasing real estate. I believe they are referring to securities, they are referring to fractional ownership of real estate." This indicates that mainstream financial institutions are recognizing the potential of blockchain real estate and beginning to make arrangements, which is a strong boost for the development of the entire industry.

Conclusion

Although homebuyers still need to go through the traditional process of selecting properties, such as examining communities, visiting houses, and assessing investment returns, the company's innovation significantly simplifies the transaction process after the purchase. After making a buying decision, the transfer of property rights will become simple and transparent, allowing homebuyers to instantly understand the property's ownership status and potential risks. More importantly, the entire transaction process can be completed in just a few minutes. If they need to change houses in the future, the property can also be quickly liquidated, truly achieving high liquidity of real estate assets.

Looking to the future, the founder is optimistic about the cryptocurrency market and the field of real-world assets ( RWA ). She expects that the annual sales of homes in the United States could grow from the current 5 million units to 20 million units. This growth is attributed to the innovation in transaction methods—buying a home in the future will be as convenient as using ride-hailing services or short-term rental platforms today. The impact of this innovative model extends far beyond developed countries. For many developing countries that struggle to attract investment due to a lack of a sound property rights system, this will be a life-changing opportunity. The digital transformation of real estate transactions in the United States is expected to become an important cornerstone for driving reforms in the global capital markets, opening the doors to investment and financing for more countries.

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