The real estate market is extremely fragmented at this time. Most properties are put up for sale and mediated by a large number of intermediary parties, with rental and lease agreements not demonstrating consistency across the board. Moreover, a majority of the transaction documentation is paper-based, proving to be a pain point for users. Enter RealEstateDoc [RED].
RealEstateDoc is a next-gen real estate software that looks to treat and provide solutions for the problems faced by the real estate market currently. The RED application provides customers with a useful set of digital tools which document management, digital signing, payments, and analytics tools. This effectively provides a collection of services that are targeted towards commercial real estate rentals. Moreover, RED facilitates secure, immutable and legally binding transactions between parties using blockchain technology, effectively bringing together a fragmented market.
RED intends not only to help real estate businesses to extract substantial costs savings in their administration but also furthers the mission of stamping out document fraud. Moreover, RED ensures certainty of payment and regulatory compliance by onboarding the right vendors or tenants. RED also drives business and traffic through commercial spaces through incentivization from a common tokenized reward system and a smart space marketplace.
The RED software runs on a sidechain on the Ethereum [ETH] blockchain, using its immutability to store hashes of digital tenancy agreements. Moreover, the blockchain is used for the proof of the existence of transactions between the leasor and the leasee.
RED is the Business-to-Business wing of Averspace, the first Consumer-to-Consumer [C2C] residential real estate portal in Singapore and Asia Pacific. Solutions offered by RED have already begun to be used in 2 malls in Singapore while being in talks with 10 more in Singapore, for a total of 12 malls.
The RED engine manages rental agreements and other contracts through an implementation of Ricardian contracts. This contract is designated to track legitimately signed agreement of both parties and is rendered robust through cryptographic verification.
The software also runs on a custom sidechain, which has lower transaction fees and reduced scalability issues when compared to the main blockchain of Ethereum. The sidechain also has custom consensus rules that can securely govern data flows such as the authorization of a user, status of KYC validation via RED. Moreover, the status of a property and the conditions for renting it are also included in the rules, including details such as whether documents are in a final or intermediate state.
The RED platform is made up of 5 modules, which function independently. The modules can be customized to the client’s liking. The modules are as follows:
#1: Digital Document Management Engine:
The document management engine captures contract-specific data such as leasing contract periods and revenues through two methods. The methods are metadata for each contract and pre-designed data cells of contract templates.
The module can extract data required for sales and business analytics. The module also maps calendars, lease booking schedule and tracks repayments to be made by tenants. The approved contact information is recorded with the document’s history on the blockchain, to ensure immutability of the data. Any enquiries with the contacts will pass through the blockchain, enforcing security by providing accountability.
Smart contracts will be implemented for applications such as monthly lease payments, periodic maintenance contracts, and rental security deposit refunds.
The module offers many features such as template management with Machine Learning [ML], collaborative contract building, permissioned access, trusted e-signatures.
The ML feature can learn documents and contract specific scenarios. Machine Learning in the template management feature will allow for the inclusion of a Natural Language Processing feature that will recommend terms and conditions. These terms and conditions will allow users to build new contracts quickly.
The collaborative contract building feature will allow the tenant and the manager to work on the contract with their respective lawyers in real time. This is being hailed as a “commercial Google Docs” on the sidechain of RED. The document will include time-stamped revision histories for discovering changes made by both parties.
As rental agreements are considered confidential, it is important to keep them private. This is why the module includes a feature known as permissioned access. Only those with access to the document will be allowed to view or edit the document. This is enforced to obtain maximum security of sensitive information.
Trusted e-signatures are included as part of the module to allow users to sign their documents without hassle. Averspace has been working on e-signing for almost two years, and they bring that experience to the table with RED. The offered signatures are compliant with CFR Part 11 and the EU’s eIDAS standards for e-signatures.
#2 Asset planner, analytics and budgeting:
The second module of the RED software allows users to manage their business from within the software itself. It provides real-time updates on business performance based on the status of the digital contracts. Moreover, it also manages individual contract values, payment schedules, unit sales per customer, and revenue generation per asset class.
The module also includes an asset planner and scheduler to allow for real-time updates on leasing schedules. The RED module will also allow for the appendage of changes to saved contracts, which will then have to be approved by the involved parties.
The module also allows for tracking and setting monthly, quarterly and annual budgets by asset categories. This removes the time lag usually associated with paper-based documentation used today and gives the user the ability to track real-time and accurate budget performance information.RED powers useful business tools or clients, with data provided by their clients.
#3 RealEstateDoc Know-Your-Customer network:
The KYC module offered by RED removes the need for third-party agencies by providing an option for a streamlined KYC process. The KYC process by RED stores vendor KYC information, which is then made available for those within the landlord’s network. The module also strengthens KYC records by obtaining the payment behavior information of the tenants, allowing for a more comprehensive view of the tenant.
Due to the usage of blockchain by RED, the KYC record of the vendors on the network is automatically recorded on the private sidechain. This module will also show considerable growth in the future as more real estate companies and property management firms use RED and participate in the network. The members of the network are incentivized to contribute towards strengthening the records of the tenants and vendors.
#4 Loyalty Points and Payment Management:
Currently, there are many loyalty programs that are being offered in malls, with them usually being non-interchangeable between malls. This makes it difficult for the average consumer, who cannot exchange the points between malls.
Now, these points can be exchanged by using RED’s Payment Gateway functionality, which is a tokenized private sidechain with a value denomination pegged at USD 1. Moreover, the payment gateway can be used for a multitude of applications.
Vendors can pay for their space lease, and also pay for third-party contracts such as maintenances. Advertisers can also pay vendors for space. Moreover, real estate companies can utilize the RED payment gateway for lease payments, bidding for space, engaging with service providers and security deposit management.
The payment gateway can be used with fiat currencies, which include methods such as bank transfers, credit cards, and online payment gateways. The user can also pay using RED’s native token, RED Token [REDT].
#5 Space Exchange:
The last module of the RED software is a functionality where real estate companies can rent out any kind of commercial real estate space. Real estate companies will be able to match with tenants, and customers will be able to bid for rental spaces and pay for them using the RED Payment Gateway.
What is Real Estate Doc Token [REDT]?
REDT is a token on Ethereum’s ERC20 standard and aims to incentivize ecosystem actors to harness the full benefits of the RED ecosystem. It also acts as a medium of payment for RED software services.
REDT can be used in a variety of ways, such as a security deposit for tenants, which will be held in an escrow. This can be levied by the real estate company if the tenant does not make lease payments on time.
It is also used as a general Medium of Exchange for software services, which can be paid through either fiat or REDT. However, users will receive discounts when using REDT, through a concept known as REDT Staking.
RED offers a revolutionary new staking mechanism for users, which allows the users to stake an amount of REDT in the staking smart contract. After a month of staking tokens in the contract, they will be issued with an ERC-721 RED Discount Token that entitles them to a 3% discount off services offered by RED. After the second month, the discount would increase to 6% and would continue to increase accordingly on a monthly basis up to a predefined maximum discount.
Staking would ensure that users and movers of the ecosystem have a vested interest in being part of the RED ecosystem. This will further contribute towards the sustainability and success of the platform.
To promote the use of REDT further, both landlords and tenants will be eligible for different tiers of exclusive memberships which will allow them to enjoy discounts and bonuses as they use REDT.
How to obtain REDT:
REDT can be bought by sending Ether during RED’s token generation event. After the launch of the product, REDT can be bought, sold and traded on secondary markets such as exchanges.
Clients who are looking to use REDT can purchase REDT directly from RED, which will be given to them at the market price. The stability required for the real estate market is ensured by the RED Payment Gateway, which is always pegged to USD 1.
Moreover, clients are incentivized to use REDT, as it will give them discounts on RED products. Lease payments can also be conducted using REDT, as this reduces the high recurring costs associated with credit card payments. REDT will effectively act as a loyalty system within the RED ecosystem.
AMBCrypto got in touch with the RealEstateDoc over some questions we had regarding the product.
Q: What drove you to create Real Estate Doc?
We started as Averspace.com 2 years ago, whereby we are a C2C real estate marketplace and platform that allowed homeowners and seekers to search and list, negotiate and chat and ultimately transact.
Our focus and strength was in transactional technologies whereby we focused on digital agreements, UX flow between transacting parties and payments to seal the contract. We were the earliest adopters of blockchain, notarizing the execution of the digital contracts on the Ethereum blockchain. Recently we even inked a partnership with SE Asia’s largest Bank, DBS to bring C2C real estate to the masses.
About a year ago, we got noticed as one of the up-and-coming proptech start-ups and through some events, we met several real estate developers, which gave us the opportunity to share what we were doing. We then got a contract to solution for one of the leading global real estate developers, Frasers Property Singapore to digitalize commercial retail leasing transactions in their retail malls – Real Estate Doc [RED] was hence born. The project has since been successfully rolled out 3 months ago and here we are now.
Q: What problems do you aim to address in the retail space?
Commercial retail is an admin-intensive sector whereby a business will need to wade through almost the same amount of paperwork for any and every deal size. Paper-fraud, expensive reworks and onboarding the right tenant/vendor are also problems faced in the commercial real estate sector.
Despite billions of dollars already spent on real estate software solutions, real estate companies are still faced with the same level of paperwork and administration and the lack of straight-through meaningful analytics to better run their business. the commercial retail sector is also facing the onslaught of e-commerce businesses whereby shoppers aren’t visiting malls as often as they used to.
RED is the next generation real estate software to address these issues for commercial real estate companies. Based on blockchain technology, it is the enterprise front-end software fabric that knits together real estate enterprise systems for seamless interoperability and streamlines work processes. Our modules will help:
1) Digital Contracts and Document Management / Collaborated Contract Building
Eliminate the tedium of administration, streamline work processes and significantly reduce sales turnaround time. the document trail which is recorded on the blockchain provides an audible trail of verifiable proof. Gathering qualitative and quantitative data through digital contracts.
2) Assets Planning, Budgeting & Scheduling
Data gathered through digital contracts powers this analytics module that provides real estate companies real-time information and leasing schedules for better resource planning and deployment.
3) The Space Exchange
Using data and an algorithm-driven tool to channel the right traffic to respective businesses.
4) Tokenized Payment Systems and Loyalty Points
A common rewards / loyalty medium of exchange, the RED platform widens the choices to end-consumers and shoppers to spend their loyalty and rewards points in multiple commercial retail locations, which are on the RED platform. Through marketing programs and the right incentives, a common rewards system will be able to drive traffic through targeted retail malls.
5) Vendor / Tenant KYC & Management
A trustless due diligence scoring system that is shared within and across real estate companies, which provides reliable due diligence and behavioural information of the tenant / vendor. This allows for an accurate profiling of vendors / tenants by real estate players, which provides compliance to applicable laws (e.g. for real estate investment trusts which are required to perform KYC / AML) and assurance of payment.
Q: Do you have specific plans for emerging markets?
Yes, we do, in fact, RED though it’s a perfect fit for Developed Nations currently, it will future-proof developing nations against first world problems in real estate. We will leverage our clients’ network reach to scale overseas starting from the countries in SE Asia, Asia Pacific and the rest of the world.
Q: Will the project develop along with emerging technologies in the IoT space?
Our current focus is to deepen our current value proposition and to complete our plans for both our middleware and blockchain architecture. Working with emerging technologies in the IoT space will definitely come due to its applicable technologies in the commercial and retail real estate space, but that will be further down the roadmap.
Q: Why did you choose the Ethereum blockchain to deploy your sidechain?
We intend to use the Ethereum blockchain to deploy the side chain because our team understands how to use it and is relatively mature. Ethereum with its up and coming developments such as Plasma, makes it appealing as it will help process transactions at a much faster rate.
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Baer Chain Global Developer Conference “CURVATURE NAVIGATION” was held Successfully in Korea.
During the conference, Vincent talked about the current status of the development and the future plans of Baer Chain:
- The globalization of Million Ecology Project is going smoothly. The “Curvature Navigation” conferences will be held in Asia first, and then in Europe and finally in North America. The official launch of the mainnet will come with a grand event in North America.
- The Baer Chain block explorer developed by supernode team Baer LA is officially launched, marking Baer Chain’s decentralized development stage;
- All game developers teams from all over the world will continue to develop blockchain games based on Baer Chain technology. At present, dozens of games are under development and will be launched in the Baer Chain ecosystem.
On 24th May, Baer Chain “Curvature Navigation” global developers conference was successfully held in Gangnam, South Korea.
Daniel Kim, CEO of Block Patch, a well-known blockchain company in Korea, attended the conference with a special guest, Zhenying Lee, who is focusing on the legal research of the blockchain industry.
Vincent introduced the development of Baer Chain at the conference. When talking about the progress of the Million Ecology Project, he said:
“We have entered the stage of curvature navigation and Korea is our first stop. Next, we will continue the journey of curvature in Amsterdam, then in London. We will eventually go to North America. What I can tell you is that it will be a grand event in North America to welcome the official launch of the Baer Chain mainnet.”
At the conference, Vincent announced that the first version of the Baer Chain block explorer developed by the supernode team Baer LA has been launched. It is the most direct visualization approach for users to engage with the mainnet.
With the release of the block explorer, all the third-party node teams are now able to smoothly carry out the development work based on the Baer Chain technology architecture, which means that the technology development of Baer Chain has entered the decentralization and the rapid growth stage of cooperation.
At the conference, Shawn from the supernode team Baer Cali also talked about the advantages of the Baer Chain technology architecture and how they began to develop games on Baer Chain.
Vincent stated that there were more than 10 super node teams have already started their development of new games. They are working very hard to develop their games and strive to release their products on the Baer Chain as soon as possible.
In the following Q&A session, Vincent was asked by one of the participants that if BRC was affected by Million Ecology Project, and Vincent responded:
“BRC is an indicator of Baer Chain’s values. The positive trend of BRC reflects the market’s view on the development and future value of Baer Chain.”
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