2.0 Market Overview

2.1 Blockchain and Tokenization

Over the last 12 years since Satoshi Nakamoto released the seminal Bitcoin white paper on a cryptographic emailing list, blockchain has emerged into a range of industries and use cases, including real estate. The main driver of this adaption revolves around trustless and decentralized blockchain infrastructure, which uploads content that can be verified and agreed upon by a network of independent actors. For new data sets to be added onto a block - for instance, real estate transactions - the independent verifiers must come to a consensus on the validity of the data within the block.

Each block and the corresponding data within the block, is cryptographically linked to the previous block. It is extremely difficult to change data stored in the blockchain, and should unverified or suspicious changes occur, it would be easily identifiable and detected. Therefore, blockchains are widely considered to be the most attractive technology for providing an immutable ledger of record and for property, and can serve as a valid method for proof of ownership.

Blockchain technology is becoming widely adapted throughout the world. As of 2022, estimated global crypto ownership rates are at an average of 3.9%, with over 300 million crypto users worldwide and over 18,000 businesses interacting with crypto and blockchain technology on a consistent basis.

This adoption has led to the emergence of other distributed ledger-capable blockchains which allow for “smart contracts.” Smart contracts are self-verifying, self-executing, and tamper-resistant programs stored on the blockchain that allow for autonomous protocolsto execute more complex transactions than just financial digital currencies.

The rise of layer one solutions such as Ethereum, Avalanche, Solana, Aptos, Kadena, and many more have allowed for the creation of decentralized applications or DApps. A DApp is an application where the back end code runs on a decentralized ledger and a user interface allows interaction with the blockchain. The DApp code is open-source, publicly-accessible, and running on multiple computers and/or nodes across the world, prohibiting any single one point of failure.

Blockchain technology is widely considered the most secure technology for the storage and transmission of data worldwide. Smart contracts and the creation of DApp programs, therefore, provide the most valid solution for recording and verifying real estate transactions through a universal distributed ledger system that does not require trust in a single third party.

2.2 Smart Contracts & Property Transactions

Propbase will design a modularized transaction platform powered by smart contracts for all tokenized real estate assets, that allows fractional property ownership to be bought and sold on the platform within minutes.

With the Propbase marketplace, every fully-funded property instantly becomes available for trade. Investors can now diversify their holdings without the limitation of whole property ownership, and invest in high demand properties that they missed out on during the initial sale.

Properties on Propbase will be in high demand and the best properties will become very competitive, we forecast properties listed on the platform to sell out within minutes. Before the introduction of trading, investors who missed out on these high demand properties had to hope that another investor would re-list and sell the tokens to other users in a high-friction, manual way, that involves excess fees. Propbase technologies, new trading capabilities, provides the most efficient and transparent form of real estate investment not yet experienced by traditional investors.

Trading with Security in Mind

Propbase verifies all property and participants on our marketplace at every step of the transaction process, through smart contracts. When a trade is executed, the user is benefiting from a trustless, immutable, decentralized, secure smart contract, audited by the leading firm, CertiK. Using a smart contract provides unprecedented transparency, where every transaction is tracked in a public blockchain ledger.

Reduced Friction, Reduced Fees

There is no fee for buyers and a 1.0% transaction fee for sellers. This low seller fee provides game-changing savings compared with the traditional 6-10% fee paid if you were to sell an entire house in the traditional way. Propbase is the only platform where users can frequently buy and sell without the hassle of excessive transaction fees, penalties, and back end office costs, that would otherwise eat away at users hard earned profit.