A blockchain is a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. It is essentially is a system of recording information and transactions in a way that makes it difficult or impossible to change, hack, or cheat.

Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or peer-to-peer (P2P) network of computers instead of a single computer. DApps (also called "dapps") are outside the purview and control of a single authority. DApps—which are often built on the Ethereum platform—can be developed for a variety of purposes including gaming, finance, social media, and real estate.

Tokens are digital assets defined by a project or a series of contracts called smart contracts which are built on a specific blockchain. Tokens are used to hold necessary information of the asset that it is representing and is giving it value. Tokenization is the process of creating a digital copy of an asset into the blockchain which is represented as a token.

Typically, the real estate tokenization process follows these steps:
1. Identifying the Asset - enbloc recognizes the commercial real estate asset. The process typically involves purchasing, financing, and appraising

2. Generating Smart Contract - Now, enbloc follows the necessary laws in the asset’s jurisdiction (securities and/or real estate laws) and generates the smart contract.

3. Token Generation - enbloc calculates the number of tokens to generate, which depends on the size of the property. Enbloc then lists these tokens on its marketplace.

4. Distribution and Marketing - enbloc advertises the tokens and lists them on its marketplace. Enbloc utilizes a tokenized asset offering to list the tokens

5. Post support - enbloc provides additional support to the investors

The real estate tokenization process utilizes blockchain, removes the reliance on intermediaries, and significantly reduces the investment requirements. This approach could unlock trillions in liquid global real estate assets. It also makes these assets accessible to a broader investor group on an open marketplace.

1) Flexibility: Anyone can invest a specific amount and become a partial property owner and benefit from the profits generated. Additionally, the token holder can sell these tokens on secondary markets at higher rates. The property owner can sell parts of their assets through token issuance. Real estate tokenization provides a better option for crowdfunding as it gives the user instant and true digital ownership.

2) No Location Limits: Property tokenization removes the limitations related to location. There is nothing to stop a user from buying a property on the other side of the world if local jurisdiction laws and regulations permit.

3) Investment Speed and Ease: The primary objective of any optimized activity is to reduce the time required to complete a process. Blockchain technology enables this by removing obstacles such as notary fees and bank fees. This removal results in increasing investor returns and shortening the process for raising capital. It effectively streamlines the process and brings in more significant revenue.

4) Diversification and Broader Audience: Tokenization removes the need to purchase the whole property. A user only has to purchase a single token. Here, the user can participate in a smaller shareholding structure like distributed investing. This process requires a small sum of money to buy a piece of real estate. The process lowers the entry barrier and makes investment accessible to people with less capital.

5) Better Security: Real estate tokenization makes transactions secure and makes the process transparent. Tokenization utilizes blockchain technology and provides the highest security standards available. Blockchain, by nature, is decentralized. It means there is no copying or code reversal, and nodes will identify any changes to the code.

Enbloc does not tokenize the asset’s title deed. It is currently legally impossible to directly ascertain real estate ownership through title deed tokenization due to the current blockchain-incompatibility of land registries, local councils, and townships worldwide.

Enbloc tokenizes interests in a Limited Liability Company (LLC) that is the sole owner of the property being acquired. Each Property will be owned by one single LLC. Therefore, by owning $RealBloc tokens you own shares in the LLC. The deed to each property is held by the LLC.

In order to participate in the platform (i.e. own tokens, trade, stake, etc.) users must complete “know your customer” (KYC) and anti-money laundering (AML) procedures through an independent third-party KYC solution provider. enbloc is implementing KYC procedures to verify the identities of our users and AML procedures to ensure that token purchasing, trading, and all platform activity occurs in a compliant manner.

enbloc outsources third-party property management to local professionals. The property management companies that enbloc connects with are responsible for renting the property, collecting rental income, and maintaining or repairing the property. Costs associated with property management and maintenance are taken out of the rental income paid to holders. By outsourcing to the Property Management Company, It helps us create a real estate platform that is more decentralized, frees up more of our time to focus on developing the ecosystem to serve our customers better.

However, we continuously monitor all aspects of the properties, from rent and rental rates to physical conditions, renovations, code compliance, and even landscaping improvements when strategic.

Enbloc’s main goal is to develop an ecosystem around the property tokens, or RealBlocs, listed on the platform. The purpose of this ecosystem is to engage the user in a digital real estate world that has all the same functionalities (and more) of the physical real estate world.

Since enbloc is a decentralized platform all transactions on the platform are governed and executed by smart contracts; enbloc is neither a custodian nor a decision-maker when it comes to the listed real estate assets. Once the users become whitelisted, they are free to use all of the platform’s features, while ensuring regulatory compliance.

Enbloc has decided to use Binance Smart Chain (BSC) as its blockchain to build on. BSC has multiple advantages specific to our platform:
BSC has minimal fees for transfers, rent collection, etc... (not more than 80 cents), which is ideal for us to be able to pay you daily rent payments, give you governance rights, trade (peer-to-peer) once the property is listed.
BSC uses the Ethereum Virtual Machine and thus has the same smart contract functionality as Ethereum. Smart contracts are what enable us to build a decentralized platform that keeps everything automated and running smoothly.
The BSC ecosystem is also very mature and has multiple functionalities. It is a fastly-growing ecosystem that our users can benefit from immensely.

No. These are investment properties, not homes. Therefore, our community members cannot live in them. They are managed by a third-party property management company. Only tenants under a lease agreement that are paying rent and following all the covenants of their lease agreement are allowed to live in the property.

Since our minimum investments are significantly lower than traditional real estate investments, there could be hundreds of investors in each property. Coordinating visits with a tenant and property manager for hundreds of investors would be an impossible task, unfortunately. However, it is possible to attend a virtual 3D or video tour of the property.

Our properties are intended to be held for 10 years. Our IRR projections are calculated over a 10 year investment period. However, property token (RealBloc) owners of a specific property have the voting capacity to decide on selling it earlier or later than the 10-year mark. It is completely up to the owners of the RealBloc tokens.

Each property has standard homeowners insurance that covers most if not all harm that could happen to the property. Moreover, 5% of the initial token sales is allocated to a maintenance reserve that should cover most daily repairs and fixes needed (that are not covered by insurance). Any additional costs that arise will be deducted from rent before it is paid out to property token (RealBloc) holders.