What came to light after the crash is that the whole real estate market is awash in bureaucracy, red tape, and bad practices. In the fallout after the crash, it turned out that record keeping was so bad that with loans and mortgages being passed back and forth between banks that it was damn near impossible to figure out who actually held the loans. The ultimate victims of all of this was the regular people just trying to get on with their lives who found suddenly that their properties were being foreclosed on by robo-signers.
The only winners, before, during, and after the crash, was the industry of bankers, lawyers, and middlemen who feed off the confusion and inefficiency built into the system. And though the specifics of the 2008 crash are American, the problem is world-wide.
It’s said that if you’re looking to create a successful business, look for a pain-point and offer a good solution. If ever there was a pain-point in search of a solution, this is it.
Dominium is a new company that believes that it has the experience and the tech to cut through the red tape and provide some rationality to the global real estate market.
In short, Dominium proposes moving a great deal of real estate dealings onto a blockchain. Everything from rental listings, to sales, to loans, to real estate funds, to REITs and more would be standardized and recorded on the Dominium chain using the DOM token.
Here are some:
- Record keeping would be automatic and immutable – no more questions about who owns what
- Regulation would be clear and automatic – no more need for armies of middlemen charging premium fees
- Prices for transactions would be set – for example, a rental listing might be set at one Euro in the Eurozone
- The time it takes to create and conclude a transaction could be cut by weeks or months
Who are Dominium?
The company has been as a collaboration between Munte Immobilien and Max Property Group. They have been watching the crypto-space waiting for the tech to hit a point where it would become viable to achieve what they have long been wanting to do. Now, as blockchains and smart contracts mature, they feel the time is right to move ahead and create their dream.
For those who have a bit of background in crypto tokens, the DOM blockchain is a childchain of the Ardor platform. Most ICO tokens are currently being built on top of Ethereum, but Dominium has chosen not to go that route in order to avoid problems of bloat and scaling.
About the Dominium ICO:
Full technical details about the ICO can be found here. My focus though is a little different. As an ICO observer, I can say that there are two truly crucial questions to ask of any coin offering:
- Is there an actual need for a blockchain?
- Is there a solid prospect of making a return on an investment?
For the first question, it’s clear that smart contract transactions and immutable record keeping near-ideal use cases for a blockchain.
For the second question, it seems that Dominium will have both a solid revenue stream and a clear plan for building the value of their DOM token.
- Revenues from transactions on the DOM platform and from property management will be used to build out the platform and acquire more properties – indicating a strong growth potential
- As the DOM token will be integral for doing business within the Dominium ecosystem, there will be strong demand for the token
- Periodic buybacks and ‘burns’ of DOM tokens will be conducted – ‘burns’ being the intentional destruction of tokens, decreasing the supply of tokens (capped at one billion) and increasing the value of the remaining coins
Further, as noted, though the company is founded in Europe, the alpha platform is already translated into 15 languages and operating in 165 countries. This is a huge reach, meaning that the possible expansion possibilities and potential rates of return could be enormous.
Dominium has a solid proposition solid team. If you are interested in investing, you can find out more here.