Elements Estates (ELES Token): Blockchain Real Estate Project Set to Disrupt Property Ecosystem
Blockchain has the potential to transform the real estate industry because of its various applications. For example, startups are developing smart contracts that can complete sales, escrows, and property records autonomously. The Blockchain validates smart contracts. Similar to a Bitcoin transaction, a consensus of nodes ensures smart contracts are executed according to specified terms.
In the context of real estate, a smart contract could be used to make a conditional offer to purchase a house. It can be programmed to hold a buyer’s deposit until some specified sale conditions are met, at which point it releases the funds to the seller. If the conditions are not met, the smart contract returns the funds to the buyer. Blockchain technology and smart contracts can also record the title or deed and send it to the appropriate public records.
Until now, real estate lawyers or notaries have done these holding and verification functions. Smart contracts can now do them autonomously without the need for mediators.
Elements Estates (ELES) is targeting a particular section of the real estate market know as “distressed assets.” Distressed assets are assets that are up for sale, sometimes at a low price, by a bank for reasons including bankruptcy or failure to pay a mortgage. In these situations, a loan or mortgage is no longer profitable to the financial institution seizes control of collateral assets.
The complexity of buying distressed properties from banks means they are largely accessible only to large-scale institutional and wealthy private investors. They plan to disrupt this model by creating a hybrid real estate agency and quasi-AirBnB that sells and rents distressed properties. Unlike Airbnb, however, ELES is not based on the sharing economy concept.
It intends to buy distressed properties via a private corporate fund. The Elements Estates online platform will then sell and rent them out using cryptocurrencies.
The ELES token will be sod during an ICO. Thus, its first function is to raise funds for buying distressed properties. The properties will go on the market (for sale or rent) through the Element Estates platform where the ELES token is the only means of payment.
Following are some use cases of ELES Token:
- Users wishing to purchase a property which is held by the fund must do so in ELES tokens.
- Anyone wishing to purchase a property which is held by the Fund will be able to purchase them through ELES platform. If the buyer is a non-holder of ELES tokens, he will be able to pay in fiat currency (additional exchange fee will be charged) and ELES platform will be obligated to exchange received payment to ELES tokens in shortest time possible.
- Those users who have signed up to the platform will be able to rent properties (tourism, commercial and residential) owned and operated by the Fund for favorable rates compared to general public. Payment will be made solely in ELES tokens.
- Anyone wishing to rent a property held by the Fund must do so in ELES tokens