This interview is part of our new Blockchain In Real Estate series, where we interview the world's leading thought leaders on the front lines of the intersections between blockchain and real estate.
In this interview we speak with Anthony Gaitan, founder of BlockBasin, to understand how his company is using blockchain to transform the real estate business, and what the future of the industry holds.
1. What’s the story behind BlockBasin. Why and how did you begin?
AG: I created BlockBasin based on the belief that one day, commercial real estate will trade like stocks on an open exchange. I envision a world where anyone can invest in a portion of their own neighborhood or places they love to frequent.
I spent seven years selling commercial real estate online so I’m incredibly well versed on digital marketplaces. At my previous workplace, we used online auctions to sell commercial buildings with values ranging from $0 to $90 million. The idea that people were able to click a button and buy anything over $1MM boggled my mind. With that said, one of the biggest challenges was being able to only service all cash buyers—this precludes a lot of people from participating in one of the best performing asset classes. Identifying the need for fractionalized real estate transactions with a securely backed lending program is really the beginning of how BlockBasin started to take shape.
2. Please describe your use case and how BlockBasin uses blockchain:
- BlockBasin uses smart contracts (ERC-1155) to facilitate buy and sell orders of any piece of the capital stack (Debt, Equity).
- Our platform uses a stablecoin to facilitate interest and dividend payments directly to the individual users wallet.
- Due Diligence for each offering is hashed and the existence of every report with time and date is never compromised. This will be instrumental in secondary trading.
3. What other blockchain use cases in real estate are you excited about?
AG: I'm most excited for the idea of atomic swaps. A peer to peer swap for real estate shares would make for an exciting trading atmosphere. The less interesting but more practical use case is land registry. Mass adoption has proven to be difficult in the land registry space. I think title insurance companies need to create a consortium that uses the same registry. That registry should only be accessed by title companies and municipalities. Further, it would be great if the insurance companies could incorporate the same registry for a private key insurance policy.
4. Where will BlockBasin be in 5 years?
AG: BlockBasin will be a leading real estate investment marketplace. Users will be able to invest in live opportunities that appear on a location search function, tailor their search queries to meet their own specific needs—location, investment amount, terms—all with the click of a button through an app on their mobile device.