Tokenization of Real World Assets | European Blockchain Convention

foreign [Music] how are you very good and you fine and I'm super happy to see you yeah there's so many people yeah it's it we are always in there at the end of the event so so let's enjoy the talk uh so maroon it's co-founder and CEO of let's token and the first use case is block home so what is block home so hi everyone again so block home um we all know how hard it closer yeah can you hear me okay perfect thank you so we all know how access to real estate is becoming harder and one of the main reasons is the notion of the property itself because traditionally in real estate you have two options zero percent ownership or hundred percent and the case of zero percent you go and rent a place and at the end of each month you feel that you are throwing your money from the window and in the second case you go to the bank and you ask for a loan and then you need to pay your life savings as a down payment and also you will need to pay more than 40 percent of your salary every month for the next 15 20 years at least that was yes or 30. so now we have uh tokenization that we can use as enabling technology to change this to redefine and rethink the notion of the property so we can have something in between and that's exactly what we did with block home we fractionalized the first building that we have our community owned in Luxembourg and now anyone from Europe can can become an owner by just starting with 1000 euros and what is more important is that they can continue their ownership gradually yeah so everybody now can gradually build their wealth in rental homes without dealing with the operational and administrative uh pains 100 that I think that it was the challenge that you identified when when you were in real estate industry the traditional one so you thought about this barriers or these these paints and it was the the main reason that you that drove you to build block home exactly thank you for pitching our idea so so what's your vision related the realistic tokenization what's what's next let's say you know because we've seen a lot of uh words and and and and and projects but but the project is now alive and and what's the the difference on what you are ahead of of the real estate tokenization yes uh so basically what we have with block home is a long-term Vision to have housing as a service where we can separate property from usage and the community members will be able to move effortlessly for example from one building to another from an apartment to another from a country to another without having to deal with all the transfer costs that comes with it because usually it's hard because you feel chained to the property as we said that you have a loan for 20 30 years and then it affects your life decisions and many other things so you can't move easily and we want to break free from this chain of of the property and give the opportunity for everyone to have this freedom so we can we can just move but as I understand your company has a very web3 approach in terms of the community because you enable the users to to to join a community and to have a secondary Market or something like that so how it works because the web 3 approach is very present in your website like the community thing Etc exactly a community for us is top top priority like whenever we talk about the community here we are talking about uh people that joined us so we were able to unite the pure investors and the people that were excluded from the market for decades and uh now the pure investor that would like to have a positive impact they are able to do it and they are giving access to the other people to live inside these buildings because now our first building is going to be used by community members okay so eight people from our community are going to be able to live there and also what they will be able to do is uh to have Services between each other so let's say you have a dog you want someone to work your dog and then you can use our platform to ask someone from uh from the community if they are interested to do it for you so you have a token for use site use like how it works it's an operational token for that for the services but uh the other one is security token okay for the building for the real estate okay so yeah um for you what's what's what are your predictions in real estate tokenization for for this year in terms of of 2023 2024 we don't have a crystal ball we know it but maybe for in terms of of I don't know regulation the users are gonna are gonna take that no if it's gonna be a reality that more and more uh real estate will will tokenize yeah I see every day more and more people that are interested in um having tokenization projects but uh the thing is does it really make sense to tokenize anything and everything um in my opinion and I think our all our team share this the same idea is that if we want to tokenize something it needs to have three main criterias which are Community Spirit Democratic approach and it needs to be democratic so these are there are three pillars yes in Block homes community democracy and you say three I said Community Democratic approach and participative participate participation of the community exactly so that's uh that's what we thought and it needs to have for in order for us as that Strokin which is a One-Stop shop for tokenization in order for us to put in place a project or to help someone to bring their project to the market it needs to have these three plus a um an impact a positive impact that they would like to have in uh in the market so for example the second one uh the second project that we are going to bring is related to affordable housing so now I had a meeting two days ago and probably we are going to have a second use case and third block home we are going to have a second acquisition very soon in the in the near future but also what I would like to say is that we always talk about uh tokenization and the technology yeah we were talking about that yeah we were talking about that outside and that's why I remember it the thing is if we really want to have a change uh we need to stop in my opinion talking about how to how tokenization work how the blockchain works and start focusing on the benefits because in our case for example we have our partners tokeny and thank you thank you for that we are able to put it in place without having the user um in the center yeah yeah so the user experience is super important and in our case you need zero uh zero knowledge or technical knowledge to become a real estate owner so we have to stop saying blockchain all the time no because maybe our the user the end user is not familiar with the blockchain technology and maybe it's so maybe a token but but not so we can say in the marketing approach I say you know like to a community to the marketing approach stuff like using this very technical thing like blockchain just say what's the benefit from the from the traditional system to not what has changed and what's the the benefit from the user so from from our experience and we spent believe me we spent so much time and educating the people because uh these people were excluded from the market for so many for so many years and you say that blockchain will will give you access and then the first things that are going to to think about is the spams and the hacks that happened and they will be uh super uh hesitating if you want to move and in our case we have more than 350 block homers and they are the owners of the first building and if uh if I want to say something um I would say that it is the first community that owns a residential building and I'm super proud to be part uh part of this and also because uh without uh without this community I don't think I should be here for example it doesn't make sense who am I so thanks sounds exciting and thanks for for explaining us uh this uh this project I don't know if anyone from the from the audience has request have questions for yeah if you have questions we have time for one question one question um you said before that you breaking the rental property up in 2 000 about a thousand Euro chunks um do you get a share like do you issue 260 tokens and then they go up in value or down in value based upon the house price or um how does the economics work for an investor so whenever you become an owner was block home you'll become a shareholder of the company that holds the building and in this case we have for the first uh for the first building it was seven million nine hundred ninety thousand and we have that amount of tokens and yes thank you thank you everybody but if anyone needs to ask any questions I will be outside having a drink so see you guys great thank you very much [Applause]