We are in the process of writing up our whitepaper. Once it is ready, you will be able to find it here. Sign up to our mailing list to be the first to know when it is ready. In the meantime, you can read more about our technology below.
EstateX uses a powerful technology, built on top of the Ethereum blockchain. Smart contracts are used to create a decentralised and automated platform that anyone can use to prove ownership of their house and property. On this platform, you are able to easily sell your property directly on the blockchain itself. Not only this, but the full life-cycle of all property events will be recorded: builds, inspections, sales and modifications.
Several smart contracts will exist. The first contains all EstateX tokens and will be distributed out in the ICO. These determine the share of commission from property sales that each holder receives. Equally important are the ownership ledger, the debt ledger and the property events ledger. During property transactions these will be modified to fulfill transactions on the blockchain. Furthermore, we will also tap into automated identity verification systems, which we are evaluating at the moment.
Overall, EstateX makes the purchase and rent of all types of property simpler and cheaper. We only charge a small fee per house sale (0.5%) and this is shared out to all token holders. Some key points about EstateX’s innovative technology follows.
Merging the Physical with the Digital
Our technology merges the physical world with the digital world. This is still new in the cryptocurrency space and thus necessitates the adherence to certain paradigms that other projects have had the freedom to ignore.
- Firstly, for example, legal matters will need to be strictly adhered to. We are thus looking at the legalities within every country in the world to see how to best to navigate each and every one.
- Secondly, real world entities will still be involved, but will have a smaller role and/or charge lower fees. For example, banks will still be involved to pay the full upfront cost of the mortgage. Being on the blockchain however means that competition between all banks will increase. Competition is good. Now all banks worldwide will be able to lend out a mortgage to anyone regardless of location, and all fees will be fully transparent and not as confusing as the current system.
We are looking at reducing, and ideally removing, the role of middle-men at every stage. This lowers fees significantly and smooths the entire process. There are three main sources of cost reduction:
- Increased competition between banks, real estate agents and lawyers. This, coupled with increased transparency, lowers fees since everyone will know who the best provider to go to is.
- Automation of legal contracts and fund payments. This will almost entirely remove the costs here. We believe that a great deal of the legal work can be either automated (on the blockchain) or made cheaper. Funds will be held in escrow on the blockchain while both buyer and seller are still deciding. This removes doubt about the buyers’ payment capability. For mortgages, smart contracts will be created.
- Duplicate inspections, valuations and surveys will not need to be carried out. All past ones are viewable on the blockchain, and there is no need to carry out another survey if the last one occurred recently.
Our system is extensible and there are many points where third parties can get involved. This type of infrastructure speeds up the rate of innovation as everyone is incentivised to participate. Having many people working simultaneously to build on top of our decentralised system will improve its capability beyond what we can imagine.
At the simple end, traditional estate agents will still be involved, and anyone who on-boards them will be rewarded. Besides this, examples where third parties can get involved include:
i) Matching buyers with sellers (i.e. improving this system, using real estate agents in the real world)
ii) Providing mortgages
iii) Automating legal contracts (e.g. creating a new contract when a new law has passed in a country)
iv) Many more that we have yet to realise