LandOrc Uses NFT and DeFi Technology to Bridge the Global Real Estate Funding gap
DUBAI, United Arab Emirates, August 12, 2021 / PR Newswire / – LandOrc, headquartered in the United Arab Emirates, is a new technology solutions provider that is making lending easier for the real estate industry by providing access to decentralized financing (DeFI) and land titles in the form of non-fungible tokens (NFT) as security, with all transactions on the Ethereum blockchain for more trust, transparency and speed.
The value of the global real estate market has reached $ 280.6 trillion, the highest number ever recorded by Savills. With an annual growth of 6.2%, residential properties had the largest share ($ 220.6 trillion) of the market. Commercial real estate ($ 33.3 trillion) and agricultural and forestry real estate ($ 27.1 trillion) the rest.
In 2017, the average global key interest rate was 11.53%, but has risen almost consistently since 2019 (11.57%). According to a KPMG report from 2020.
Digitization of the real estate market with NFTs + DeFI
Digitization on the real estate market is on the rise. However, processes are often a time and labor consuming affair and have often been viewed as a stagnant investment for large companies, especially with assets in different countries.
“Real estate developers need development loans and this funding gap needed to be closed. The private lending sector should be supported, but unfortunately the Covid-19 pandemic resulted in a decline in both capacity and willingness to lend as companies shifted focus on their existing businesses and bottom line. “
“There is also a lack of transparency in processes that lead to volatility in real estate prices, and coupled with slow transactions, the real estate market urgently needs a digital transformation Damo, Managing Director of LandOrc.io.
The NFTs are based on blockchain, a distributed ledger technology that is currently widely used for various applications. NFTs are essentially digital tokens that carry data and are stored in the immutable blockchain ledger.
NFTs optimize real estate processes by implementing them in infrastructural, architectural or physical assets such as buildings and title deeds.
Because NFTs can be represented digitally, tracking and tracing the ownership and authenticity of the digitally represented asset is simplified to a fraction of the time that traditional processes take.
Land NFT (LNFT) represents the title of land on the blockchain that enables changes in ownership to be tracked as they migrate out of the wallet, including placement as collateral for lending.
Associated information such as assessment, location and images as well as environmental analyzes are brought into the chain via oracles and stored in the associated IPFS (InterPlanetary File System, a peer-to-peer hypermedia protocol) for easy and secure access.
This enables hybridized digital-physical land titles that make authentication, tracking and tracing of property ownership a breeze.
LandOrc’s NFT + DEFI ecosystem functions
- simplified complex real estate transaction processes
- Shortened traditional real estate transaction processes from 4 months to 21 days
- Easy security management through property traceability
- Home loan options that are lower than locally available interest rates
“It is time for real estate companies to see NFTs as a realistic and practical solution to the vulnerabilities that have plagued the industry for decades,” said Damodharan Vijayaragavan, chief executive officer of LandOrc.io.
Decentralized Funding (DeFi), the process of blockchain-based funding, has grown up $ 87 billion In May 2021 based on defibrillation pulse data. This creates a new source for bridging the financing gap in the real estate sector.
LandOrc enables DeFi participants to use LandOrc Token (LORC) as alternative financing for participation in real estate development projects. Members of the LandOrc ecosystem are involved in key platform decisions, including the selection of projects for lending. The Land Governance Token (LGOV) can then be used to transparently vote on the decisions made on the blockchain.
More information is available at www.landorc.io.
LandOrc, based in Dubai, offers digitized real estate solutions by integrating NFTs into DeFI technology. The aim is to offer a comprehensive end-to-end solution that encompasses the digitization of land titles, appraisal, financing of real estate projects using collateral and the staking out of real estate projects.
Led by an intercultural team of experienced and enterprising experts from the fields of finance, technology, real estate, law and marketing, LandOrc ventures into the high-base credit markets in Asia, Africa, Latin America and Eastern Europe.