Dominium is leveraging blockchain: The next big thing in commercial real estate.
Blockchain, often described as a disruptive technology, has in recent time been adopted and adapted for use by the commercial real estate industry (CRE). Players in the industry are discovering that blockchain-based smart contracts can play a much larger role in their industry. It is a technology that has the potentials for transforming main commercial real estate activities, and management transactions.
What could these potentials be for the CRE? It definitely will bring transparency. You want to talk of efficiency, and you are right on track. Also, it will help in cost savings for CRE ownership, considering that it will remove so much of the existing inefficiencies in key processes.
The Real Estate Market
Globally, the real estate market is projected to have a revenue of USD 4,263.8 billion by the year 2025 according to Grand view Research, Inc. in a recent report.
There are reasons for increased demand for housing real estate space, rapid urbanisation owing to migration of those seeking for better life.
Other factors account for this phenomenon, like the rapid economic development in developing regions and countries like China. Africa is not left out, with many countries experiencing enhanced income level which has helped to fuel growth in the real estate market.
Simply described as a process of buying, selling and renting, leasing of property and condominiums for commercial and personal household wage, commercial real estate business has witnessed exponential growth in the last decade.
The United Nations has it that 50 percent of the population are in urban centres and it is a figure that is expected to reach 65 percent by 2025, because of migration to cities which turn to megacities with bustling urban amenities and lifestyle.
The challenge
As mentioned earlier, real estate has enormous potentials besides the fact that it is the simplest means to investing in the modern world. But there are a number of sticking points plaguing the industry. The common one is the problem of illiquidity, a situation of money being held up in long term investment. So, what you end up with is a scenario of cash not going round, stalling business and the issue of entering or leaving those direct investments.
Additionally, there are serious obstacles when it comes to entry for these investments, having as a requirement very rich individuals. The coordination, ironically is carried out by less rich people.
These are serious challenges requiring solutions. The available solutions do not address the issues completely, hence the introduction of Dominium.
Why Dominium?
Dominium is tapping into the possibilities of blockchain - placing on the blockchain platform, property finance, listings and property management.
The world has become a global community and the team behind the project is very much aware, hence the provision for a multilingual platform with a standardized regulatory compliant documentation.
Project Dominium as a service platform, gives services in two ways:
The first provides for investing in real estate, giving investors the opportunity to invest in the market with as little as a share or token. This strategy gives investment opportunities to anyone through the instrumentality of the Decentralised Asset Exchange. This invention will completely do away with the need for a third party because it brings about a fully liquid peer-to-peer fund trading between investors.
The second way in their service provision is the use of blockchain to handle individual properties. Industry players - property managers, agents, tenants and real estate professionals will leverage the blockchain technology by recording information on it, with the inherent advantages of doing so, such as transparency, impenetrability and unchangeability by patties involved.
Dominium is creating an ecosystem where property management in all its forms and rental business is done without hitches and taken to a level that is more sophisticated. It seeks to accomplish this by entrenching property and rental transparency, since blockchain will be doing almost the whole recording work.
How Dominium works
The project is in compliance with basic governmental regulations. In particular, it is crucial to obey the know-your-customer (Kyc) and anti-money laundering regulations.
As a result, those participating in the Dominium platform will be required to register in order to have access to the features available.
The Initial Token Offering (ITO)
Dominium will rather not create equity tokens that typically stands for ownership of an asset, but rather offer a utility token. DOM is the name of the token and will be used in paying for all transactions on the platform.