KnotelKoin: Blockchain Commercial Real Estate Cryptocurrency?
Knotel Koin aims to revolutionize commercial real estate using blockchain technology. Find out how it plans to do that today in our review.
What Is KnotelKoin?
Knotel Koin, found online at KnotelKoin.com, is a blockchain-based platform that aims to make commercial real estate (CRE) data more accessible and seamless to access.
The goal is to create a global directory of CRE data, where anybody in the world can access aggregated CRE data on a secure, open source Knotel blockchain platform, allowing investors to participate in marketplaces that were previously impenetrable.
Key features of the platform will be its open and transparent search service, which will allow users to search verified CRE listings.
What Problems Does KnotelKoin Seek To Solve?
Knotel Koin seeks to use blockchain technology to improve the overall commercial real estate industry – including the way people list properties and buy or lease properties online.
One of the biggest problems facing the industry, according to the Knotel whitepaper, is that listing data is fragmented and inaccurate. The data you see about a commercial real estate space on one website might be contradicted by information you see on another website.
Another problem with commercial real estate is that the industry is controlled by a handful of proprietary platforms. The Knotel whitepaper mentions CoStar, for example, which collects close to $1 billion in annual service fees. Tenant-facing platforms like 42Floors, meanwhile, also have strong market share. With both of these platforms, commercial real estate data is controlled by a centralized party. The public cannot verify information presented to them, and users are forced to trust that the centralized company has posted correct information.
Brokers in the commercial real estate industry charge excessive fees for the work being performed. A typical brokerage fee is around 10% or more of the deal’s value. A large portion of real estate value is consumed by transactional costs – like the costs involved with finding and securing real estate in the first place.
Knotel aims to use blockchain technology to fix these problems, providing a secure and immutable source of commercial real estate information worldwide.
How Does Knotel Commercial Real Estate Cryptocurrency Work?
Knotel is a blockchain-based platform that aims to offer the following core functions:
- A better property search process
- Expedited pre-lease due diligence and information verification
- Ease leasing and subsequent property management and cash flow management
- Transparent and cheaper property title management
- More efficient processing of financing and payments
The ultimate goal is to create an ecosystem that facilitates on-demand, secure, and low-cost access to commercial real estate listings via the blockchain.
The ecosystem will revolve around use of the Knotel Koin, a token that allows you to pay for listings on the platform and perform other functions. This token will be used to reduce friction in the ecosystem, helping participants avoid the high costs of payment processing and other issues.
The Knotel blockchain itself is a proof of stake blockchain capable of using ERC20 tokens – including the Knotel Koin token. That blockchain will have token-based voting. Participants in the Knotel network are expected to be professionals, experts, information scientists, and large information collection firms in the existing CRE ecosystem. All of these participants can earn Knotel Koins as a reward for their contributions to the platform.
Knotel will also use smart contracts. A smart contract will be established every time a user submits data to the database. A bounty will be held on the contract and paid out after the data is validated.
Who’s Behind Knotel?
Knotel is led by co-founder and CEO Amol Sarva, who co-founded several technology companies several to founding Knotel, including Virgin Mobile USA, Peek, Halo Neuroscience, and Notable. He also developed a residential condo building in Long Island City called East of East. Sarva teaches at Columbia University and has served as an advisor to 50+ companies.
Other listed members of the Knotel executive team include Edward Shenderovich (Co-Founder and Executive Chairman). Edward previously co-founded Kite Ventures, a venture capital firm that invests in early stage tech startups. He also co-founded QuantumArt, Merchantry, Knotable, and SUP Media.
Knotel isn’t a brand new startup: the company has been operational for two years (they launched in 2016). Over those two years, Knotel has already achieved double digit market share of commercial real estate in critical New York submarkets.
Knotel has also partnered with partners who manage 100+ million square feet of commercial real estate space across the United States, which means their platform will get off to a powerful start. The company is specifically aiming to reach double digit market share in San Francisco, New York, and London within the near future. Within three years, Knotel aims to cover “the 10 largest markets in the west.”
Knotel is headquartered in New York City, but launched their San Francisco office in Q3 2017.
Knotel is a custom blockchain that aims to disrupt the commercial real estate industry. The goal of Knotel is to create a blockchain-based ecosystem where property owners can post CRE information online, then have that information validated by professional validators, who receive Knotel Koins for their contributions to the ecosystem.
The end result is a secure, immutable, and accessible source of commercial real estate (CRE) information.
To learn more about Knotel and its plans for the future, visit online today at KnotelKoin.com.