How Lilypads Is Utilizing Blockchain And Web 3.0 In Commercial Real Estate Investments

real estate investment platform
real estate investment platform

In this rapidly advancing digital world, the need for technology in real estate is now more than ever. Emerging technologies such as Blockchain and Web3 have the potential to not only transform the industry but also make it future-proof. 

As far-fetched as all of these may seem, Lilypads turns them into reality by incorporating these technologies into its new CRE platform.

Let’s take a look at how these technologies will help make commercial real estate investments easier and better.

Web 3.0 And Blockchain Technology In Commercial Real Estate 

According to Nareit, the US had a total of more than 69 billion square feet of commercial real estate property with a total value of $20.7 trillion in 2021. Such a vast industry with huge capital potential can be very difficult to manage with traditional methods of operations. 

Introducing blockchain can help the industry increase efficiency in property management and ROI, reduce paperwork, and make commercial real estate investment accessible to all.

Although this technology is not brand new, its application in the commercial real estate industry is still at an infant stage. Most of us are familiar with only one application of blockchain, i.e crypto. However, the application of blockchain is limitless, which real estate investors and professionals have limited knowledge about. 

Web 3.0 a blockchain-based technology and its decentralization concepts are transforming the commercial real estate industry to a whole new level. Blockchain and its growing technological trends like the evolution of web 3.0 from web 2.0, NFTs, and cryptocurrency are the foundation of tomorrow’s world. 

At Lilypads, we aim to tackle existing challenges and make commercial real estate investments future-proof by adapting to these growing trends.

Read our blog to learn more about blockchain in real estate. 

Digitalizing Commercial Real Estate Industry with Lilypads

Utilizing cutting-edge technologies like blockchain and web 3.0, Lilypads is aiming to make commercial real estate investments efficient, secure, transparent, and accessible to all. 

Here’s what we at Lilypads are offering to the commercial real estate community with our new blockchain-based CRE investment platform.

Trust Tokens

Lilypads has transformed the traditional real estate industry by introducing Trust Tokens, a digital representation of real estate assets. By leveraging fractional asset tokenization, our blockchain-based platform helps convert real estate properties and portfolios into digital assets or unique tokens (NFTs). 

Owner Operators can choose to release shares against these NFTs providing investors with an opportunity to participate in fractional investments. Investors can directly purchase these shares and share capital gains from the same depending on the percentage of investments.

Using digital Smart Contracts signed with investors’ private keys, Lilypads ensures the authenticity, safety, and security of these deals.  The returns, share prices, and other details of the property are securely stored in an immutable ledger which helps to build a relationship in a trustless ecosystem without the intervention of any third party.

DigiTrust

A blockchain wallet is a digital wallet used for storing, managing, and trading cryptocurrencies and NFTs. It is an essential component of real estate investments based on a blockchain platform. 

Our one-of-a-kind token-based wallet allows you to access Lilypads’ blockchain marketplace to support transferring of tokens. The DigiTrust wallet also allows you to exchange crypto-tokens for Trust Tokens by linking it to an external wallet to purchase shares listed on the Lilypads platform.

DigiTrust also allows you to track your real estate investments and provides you with timely payouts of the Trust Tokens based on your percentage of shares owned. While the asymmetric key encryption of the wallet ensures maximum security. 

Furthermore, you can use DigiTrust either as a Cold Wallet or as a Hot Wallet to save investments from the volatility of the market depending on the situation. 

Lilypads Securities

Enjoy fractional ownership of real estate assets and portfolios by investing in shares of tokenized real estate properties. The Lilypads securities platform allows you to trade real estate assets by purchasing and selling Trust Tokens.

Lilypads releases shares against the tokenized property at prices set by the Owner Operators that are listed on the Lilypads platform for investors. As a result, investors can access fractional ownership opportunities that democratize the real estate market in the truest sense. 

Furthermore, when an investor purchases shares, the payments are directly credited to the Owners account. Thereby, eliminating the need for intermediaries and making real estate investments seamless and efficient.  

LNET

The Lilypads private network is the ever-growing community of investors, brokers and owner-operators where they can connect and discover exclusive investment opportunities in institutional grade properties across all the major asset classes like Multifamily, Office, Industrial, Built-to-suit etc. 

Moreover, Sponsors can facilitate crowdfunding and Syndication opportunities for their CRE projects from across the Lilypads Private Network. 

How Will Lilypads’ Products Impact The CRE Industry

1. Increased Liquidity

Traditional real estate is famous for being a highly illiquid industry. The massive capital required for investment has always been a reason for the community’s lack of buyers and sellers. 

Lilypads securities can help solve this problem by indulging in asset tokenization and fractional ownership. Purchasing Trust Tokens allows investors to earn from trading shares of real estate tokens instantly.

2. Greater Accessibility 

Another great benefit of fractional investment is that it lowers the entry barriers to commercial real estate investments. With comparatively low prices of shares, investors can participate in previously inaccessible deals.

3. Transparency in Deals

With asset tokenization, all the information of the property including property deeds transferred to the blockchain ledger. When a token is generated it has information regarding the owner stored in it. In the event the token is transferred to another person, a new token is generated and the old one is destroyed. Thus each token is unique and ensures transparency of property ownership.

4. Removing Intermediaries

Traditional real estate deals are very expensive with closing fees reaching up to $10,000 and also a number of real estate professionals. Lilypads securities platform can remove all these people by leveraging blockchain technology and smart contracts. 

Automating tasks like rolling out payments to investors and crediting money directly to owners of tokenized properties can help remove these intermediaries.

5. Security 

A wallet-based transaction eliminates the risk of falling into online fraudulent payment traps. Additionally, ownership deeds are moved from a paper contract to an immutable blockchain ledger. Thus, ensuring the security of transactions and ownership.

Lilypads – The Real Estate Investment Platform of the future

Although real estate is a timeless asset class with a significant amount of return. There are still opportunities to improve and there is no doubt that the future will revolve around blockchain technology. Lilypads is shaping the future of the real estate industry with its blockchain and web 3.0 integrated platform. Join our waitlist now to get on board with the future of Commercial Real Estate Investments. 

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