Dec 15, 2021
Brains and Hammers Digital Ecosystem (Lite Paper)
Overview
Property investment is globally acknowledged as one of the safest investments with potential for growth and cash flow income. Since the beginning of time “Land” has always been the ultimate measure of wealth. BHDE intends to create a next generation investment platform that will change property investment and development around Africa by allowing investors to leverage blockchain technology and invest in tangible, long-term returns, while also giving investors an opportunity for fractional ownership.
The closest thing to this concept in the traditional market is what most people know as Real Estate Investment Trust (REIT). However, REITs have major cons, one of the major ones being a lack of liquidity, Yield taxed at a high rate and interest rate sensitivity. BHDE uses a ledger based platform that uses a utility token and an NFT virtual representation of assets. Thereby, eliminating the challenges traditional real estate investments face.
Current Challenges
In legal systems where public deeds and the principle of trust in the public authority that deals with real estate registers are ignored or where a reliable land registry system is absent, such as in less developed countries, interesting applications for the blockchain could be found in the registry and transfer of real estate titles.
We all know the challenges faced when purchasing any type of real estate, these challenges are faced globally. It does not matter what country you are in, getting ownership of a real estate is highly time consuming and capital intensive. Some of these challenges include but are not limited to; exposure to interest rate volatility, credit score limitations, inflexibility, high entry and exit cost. REITs are supposedly the solution, but in this current time, they have become highly inefficient, slow, expensive and most of all still lack liquidity. Real estate is a great and solid investment, However because of the cost of entry and lack of liquidity some investors find it difficult to invest.
Most developing countries share similar challenges in investing in this sector. Considering real estate investment is a highly capital intensive investment, It often seems unattainable or out of reach for most people.
Our goal is to provide domestic and international investors direct access to opportunities in the African real estate markets in a way that is seamless, quick, and low-cost. We want everyone to be able to own real estate and generate revenue streams without any of the risk and regulatory burdens that come with it.
Our Solutions
Asset Tokenization
Real estate tokenization is a new concept that brings real estate investing and blockchain technology together. Tokenization makes it easier for asset or fund owners to obtain funds, and it allows investors unparalleled access to private real estate assets, transparency, and liquidity.
Real estate assets are difficult to physically divide or transfer, but ownership rights can be turned into digital tokens backed by the assets themselves using the tokenisation on the blockchain.
Tokenizations Types on Offer
Landed NFT (LNFT)
Lack of Verified land ownership certificate is a key barrier to international investment and development in the African real estate market. The complexity of traditional shared land ownership forms, which are difficult to establish in a statutory tenure, is typically the driving force behind this problem. Nonetheless, there is widespread agreement that having access to current geographic information on the property is a critical precondition for the establishment of a national land tenure system, which includes the cadaster and certification of land titles, easy transfer of ownership and trading on the market place.
BHDE Offers the world’s first LNFT, fractionalized geospatial point as an NFT representing a real world physical space that can be traded on the open market.
Property Token (BHPT)
The property tokens are a set of tokens minted to represent a share in a property. Ownership of each property is distributed across a finite number of representative tokens. Based on token share, owners can collect revenue from rent, and vote on property decisions.
These tokens are used to ascribe the “beneficiary status” on return-on-investment in specific assets offered by BHDE, they are automatically dispersed by the smart contract to the owner at the time of auction or sales, according to the conditions stipulated in the code. Property tokens will be minted based on the value of a specific property.
Project Road Map
2021
Q4
- Kick Off: Ecosystem Launch
- Prototype Real Estate Marketplace
2022
Q1
- Landed NFT Launch
- Landed NFT Plot Offering 1
- Property Token Offering
- Africa Fintech Incubation Hackathon
- BHDE Real Estate Digital Backed Loans
- Digital Wallet Prototype Launch
- Use of Funds
- Plot Development for the purchased Landed NFT (LNFT)
- Ecosystem Expansion
Q2
- Real Estate Market Place Full Launch
- Marketplace NFT Launch
- BHDE Land Mapping and Registry Platform Launch
- Launch: Sustainable City IPO 1
- Hotel Rooms Tokenisation Offering
- Landed NFT Plot Offering 2
- Use of Funds
- Plot Development for the purchased Landed NFT (LNFT)
- Build Sustainable City no 2
Q3
- Africa Fintech Incubation Grant Round 2
- BHDE Integrated Farming Platform Launch
- BHDE Discount Utility Token Campaign Launch
- Launch: Sustainable City ITO
Below is an article by nasdaq on the utility for tokenized real estate assets
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