{"id":7237,"date":"2021-10-13T10:44:11","date_gmt":"2021-10-13T14:44:11","guid":{"rendered":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/?page_id=7237"},"modified":"2023-08-10T08:52:57","modified_gmt":"2023-08-10T12:52:57","slug":"fengari-markets-a-new-paradigm-for-the-worlds-oldest-asset-class","status":"publish","type":"page","link":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/","title":{"rendered":"Fengari Markets \u2013 a new paradigm for the world&#8217;s oldest asset class"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-image: url(&#039;https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/mountain-boat-1038943424.jpg&#039;);background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\" data-bg-url=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/mountain-boat-1038943424.jpg\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-0 fusion_builder_column_inner_2_5 2_5 fusion-two-fifth fusion-column-first\" style=\"width:40%;width:calc(40% - ( ( 4% ) * 0.4 ) );margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 60px;\"><span class=\" fusion-imageframe imageframe-none imageframe-1 hover-type-none\" style=\"margin-right:25px;float:left;width:100%;max-width:300px;margin-top:30px;\"><a class=\"fusion-no-lightbox\" href=\"https:\/\/prophetlabs.com\/real-estate\/\" target=\"_self\"><img width=\"400\" height=\"100\" src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2022\/06\/shepherd-full-logo-hztl-white-left.png\" class=\"img-responsive wp-image-7377\" srcset=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2022\/06\/shepherd-full-logo-hztl-white-left-200x50.png 200w, https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2022\/06\/shepherd-full-logo-hztl-white-left.png 400w\" sizes=\"(max-width: 800px) 100vw, 400px\" \/><\/a><\/span><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-1 fusion_builder_column_inner_3_5 3_5 fusion-three-fifth fusion-column-last\" style=\"width:60%;width:calc(60% - ( ( 4% ) * 0.6 ) );margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 60px 0px 0px;\"><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-2 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:350px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-1\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; margin-top: 0px; font-size: 48px; color: #ffffff;\">Overview \u2013 Dematerializing Real Estate.<\/h1>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:150px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last whitepaper\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-2 whitepaper\" style=\"transform:translate3d(0,0,0);\"><h2 style=\"margin-bottom: 0; padding-bottom: 0;\">Tokenizing the actual real estate. Real-time appraisals and analytics.<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-center fusion-flex-justify-content-space-between\" style=\"width:calc( 100% + 15px ) !important;max-width:calc( 100% + 15px ) !important;margin-left: calc(-15px \/ 2 );margin-right: calc(-15px \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_2 1_2 fusion-flex-column fusion-flex-align-self-center whitepaper\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-center fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-3 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-callout-left-100\">The next logical step is to dematerialize real estate using the composable non-fungible token standard ERC-998, whereby these assets can own and control other fungible and non-fungible tokens (NFTs).<\/div>\n<\/div><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-2{width:50% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 7.5px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 0px;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}<\/style><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_2 1_2 fusion-flex-column fusion-flex-align-self-center whitepaper\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-center fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-4 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>Real estate is unique; it\u2019s non-fungible and should be represented as such.\u00a0 But real estate also has numerous ancillary items (deed, title, insurance, income streams, etc.) that must be accounted for.\u00a0 Recent innovations in crypto have focused on composability \u2013 the ability for two or more things (often, smart contracts) to interact.\u00a0 Composability allows for exciting new use cases, as protocols and applications can now plug into each other like Lego blocks.<\/p>\n<p>The next logical step is to <span class=\"fusion-tooltip tooltip-shortcode tooltip-teal\" data-animation=\"\" data-delay=\"0\" data-placement=\"top\" data-title=\"To harness energy and economic value - transferring it from a physical to digital form. Amazon dematerialized retail shopping. Mobile dematerialized music and books. Shepherd will dematerialize the world&#039;s largest asset class \u2013 real estate.\" title=\"To harness energy and economic value - transferring it from a physical to digital form. Amazon dematerialized retail shopping. Mobile dematerialized music and books. Shepherd will dematerialize the world&#039;s largest asset class \u2013 real estate.\" data-toggle=\"tooltip\" data-trigger=\"hover\">dematerialize<\/span> real estate using the composable non-fungible token standard ERC-998, whereby these assets can own and control other fungible and non-fungible tokens (NFTs).<\/p>\n<p>Composable NFTs provide tangible value to real estate owners and investors by providing immutable evidence of ownership and asset performance via crypto tokens that can seamlessly interact in the decentralized finance (DeFi) realm.\u00a0 Critically, NFTs do not fall under the same regulatory oversight as fungible tokens \u2013 alleviating the need for costly intermediaries and eliminating the associated time delays.<\/p>\n<\/div><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-3{width:50% !important;margin-top : 10px;margin-bottom : 20px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 7.5px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 0px;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}<\/style><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 20px;padding-right : 60px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 60px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last whitepaper\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-5 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>As set forth below, composable NFTs dematerialize real estate and, in doing so, solve the problems that have been plaguing the industry for centuries.\u00a0 This is the real estate market of Web3.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-image: url(&#039;https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/forest-river-dark-1076579640.jpg&#039;);background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\" data-bg-url=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/forest-river-dark-1076579640.jpg\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-3 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:400px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-6\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: left; letter-spacing: .2em; margin: 0 0 20px 100px; font-size: 24px; color: #ffffff;\">PART I<\/h1>\n<h1 style=\"text-align: left; margin: 0 0 10px 100px; font-size: 48px; color: #ffffff;\">A Bit of History.<\/h1>\n<h1 style=\"text-align: left; margin: 0 0 0 100px; font-size: 48px; color: #ffffff;\">Mistakes of the past.<\/h1>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:200px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 fusion-flex-container hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-center fusion-flex-justify-content-space-between\" style=\"width:calc( 100% + 15px ) !important;max-width:calc( 100% + 15px ) !important;margin-left: calc(-15px \/ 2 );margin-right: calc(-15px \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-6 fusion_builder_column_1_2 1_2 fusion-flex-column fusion-flex-align-self-center whitepaper\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-center fusion-content-layout-column\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 40px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-7\" style=\"transform:translate3d(0,0,0);\"><p>Real estate is an asset class that everyone interacts with throughout their lifetime as users, owners, and\/or renters, and, sometimes, also as operators, developers, and\/or renovators.\u00a0 Yet, in a world where most things can quickly and easily be done remotely, real estate transactions remain uncertain, costly, complicated drawn-out processes.\u00a0 Entire satellite industries have evolved for facilitators \u2013 lenders, debt brokers, analysts, real estate brokers, lawyers, government regulators, inspectors, appraisers, title agents . . . \u00a0the list goes on.<\/p>\n<p>A typical real estate deal (whether residential or commercial) involves research, an escrow account, negotiating the price, obtaining title searches and insurance, hiring legal counsel, completing all third-party inspections, negotiating closing fees, negotiating and securing debt, removing any contingencies, completing the legal documentation, and funding.\u00a0 Amazingly, it often takes the same amount of paperwork to close a $50,000 deal as it does to close a $50,000,000 one.\u00a0 Only a facilitator could tell you with a straight face that this is a healthy process.<\/p>\n<p>Want to flip the asset in the near future?\u00a0 The entire process starts again.<\/p>\n<p>The monolith that is the real estate sector is thought to move slow because the focus is on getting it right. After all of the appraisals and third-party inspections, at least the parties know that the asset is solid; they paid the right price. But, in reality, this couldn\u2019t be further from the truth. The current model has a critical flaw \u2013 lagging data.<\/p>\n<\/div><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-6{width:50% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-6 > .fusion-column-wrapper {padding-top : 40px !important;padding-right : 0px !important;margin-right : 7.5px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 7.5px;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}<\/style><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-7 fusion_builder_column_1_2 1_2 fusion-flex-column fusion-flex-align-self-center whitepaper\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-center fusion-content-layout-column\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 40px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-8\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-callout-100\">The monolith that is the real estate sector is thought to move slow because the focus is on getting it right. After all of the appraisals and third-party inspections, at least the parties know that the asset is solid; they paid the right price. But, in reality, this couldn\u2019t be further from the truth. The current model has a critical flaw \u2013 lagging data.<\/div>\n<\/div><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-7{width:50% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-7 > .fusion-column-wrapper {padding-top : 40px !important;padding-right : 0px !important;margin-right : 7.5px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 7.5px;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 7.5px;margin-left : 7.5px;}}<\/style><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-6{ padding-top : 0px;margin-top : 0px;padding-right : 60px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 60px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-7 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-8 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last whitepaper\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-9\" style=\"transform:translate3d(0,0,0);\"><h2>Most markets are based off well-known principles of supply and demand, and real estate is no exception.<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-8 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-9 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-10\" style=\"transform:translate3d(0,0,0);\"><p>Owners, developers, and renovators form the supply side of the market, while owners, users, and renters form the demand.\u00a0 Of course, the theory of supply and demand assumes that markets are perfectly competitive.\u00a0 This implies that there are many buyers and sellers in the market, none of whom have the capacity to significantly influence the price.\u00a0 This often fails to account for many real-life situations, as individual buyers and sellers do have the ability to influence prices.<\/p>\n<p>Microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.\u00a0 A number of modifications must be made to standard microeconomic assumptions and procedures in order to apply simple supply and demand analysis to the real estate markets.\u00a0 In particular, you must additionally account for durability, heterogeneity, high transaction costs, lengthy delays, immobility (other than mobile real estate), and its dual nature as both an investment and a consumption good.<\/p>\n<p>Residential Real Estate can be analyzed using supply (as determined by the cost of various inputs, such as electricity and building materials, the price of the existing stock of houses, and the technology of production), demand (as driven by demographics and psychographics), and a stock \/ flow basic adjustment mechanism.<\/p>\n<p>Commercial Real Estate, on the other hand, is far more complicated, further taking into account asset pricing, market employment, credit, consumer confidence, housing numbers, inflation, income, and retail strength.\u00a0 A commercial real estate investment involves cash flows, outflows, timing of cash flows, and risk, which can be dependent on market conditions, current tenants, and the likelihood of year-over-year lease renewals and successful servicing.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-9 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-10 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last whitepaper\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-11\" style=\"transform:translate3d(0,0,0);\"><h2 style=\"color: #235c63; text-align: center; margin-top: 10px; margin-bottom: 40px;\">One would assume that in today\u2019s data-driven world oracles would routinely provide real-time analytics for each of these factors, yet that is not the case.\u00a0 Instead, the commercial real estate market relies on appraisals \u2013 a lagging indicator.<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-10 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-11 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 60px 0px 60px;\"><div class=\"fusion-text fusion-text-12\" style=\"transform:translate3d(0,0,0);\"><p>There are 3 methods commonly used in commercial property appraisal:<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-12 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-4 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-first\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-13\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 20px;\">Cost<br \/>\nApproach<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-5 fusion_builder_column_inner_1_3 1_3 fusion-one-third\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-14\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 20px;\">Sales Comparison<br \/>\nApproach<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-6 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-last\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-15\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 20px;\">Income Capitalization<br \/>\nApproach<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-7 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-first\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 30px 0px 30px;\"><div class=\"fusion-text fusion-text-16\" style=\"transform:translate3d(0,0,0);\"><p>The Cost Approach is not very popular, as it merely assumes that the value of the commercial real estate is equal to the cost incurred to construct it (i.e., the replacement cost).\u00a0 Thus, any future cash flow or profits from the property are not accounted for in advance, making this methodology rather unreliable.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-8 fusion_builder_column_inner_1_3 1_3 fusion-one-third\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 30px 0px 30px;\"><div class=\"fusion-text fusion-text-17\" style=\"transform:translate3d(0,0,0);\"><p>The Sales Comparison Approach (aka Market Data Approach) involves selection of properties with similar characteristics and in the same (or similar) market area.\u00a0 The value of the property is then inferred from the sales data of these industry \u201ccomps.\u201d\u00a0 This approach, too, has proven unreliable in and of itself, although it is often incorporated with an Income Capitalization Approach for a blended appraisal.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-9 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-last\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 30px 0px 30px;\"><div class=\"fusion-text fusion-text-18\" style=\"transform:translate3d(0,0,0);\"><p>The Income Capitalization Approach assumes a positive relationship between the current value of the property and the expected cash flow that the property should provide in the future.\u00a0 It also simultaneously assumes a negative relationship between the current value of the property and the probable risks involved in achieving the expected future cash flow.\u00a0 Thus, de-risked property capable of generating sustainable cash flow becomes the prize.\u00a0 The most important part of this method is that the analysis of the property must include its ability to provide a return on the capital investment.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-10 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 60px 0px 60px;\"><div class=\"fusion-text fusion-text-19 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p style=\"text-align: left;\">Now that we have an overview of the real estate space, let\u2019s shift our gaze to the tech arena.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-11 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #235c63;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 10px;margin-top: 20px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-13 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-20\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-subhead-1\">The Exponential Age<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-12 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-14 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-21 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div style=\"margin-left: 60px; margin-right: 60px;\">\n<p>Understanding this Exponential Age is, at once, the most basic and the most powerful tool in one\u2019s arsenal.<\/p>\n<p>The term Exponential Age has been tossed around since we began understanding exponential technologies &#8211; those that, as they advance, accelerate the progression of seemingly disparate technologies and expand what\u2019s possible at a pace that\u2019s difficult to comprehend.\u00a0 In math, an \u201cexponent\u201d is the number of times a number is to be multiplied by itself.\u00a0 Thus, \u201cexponential growth\u201d is when a mathematical function\u2019s current value is proportional to its rate of change.<\/p>\n<\/div>\n<h2 style=\"text-align: left; margin-left: 60px;\"><img class=\"alignright wp-image-10243\" src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/moon-footprint-668990108.jpg\" alt=\"\" width=\"600\" height=\"411\" \/>For example, if someone took 10 linear steps (1, 2, 3, 4, 5, etc.) they get to 10.\u00a0 But, if they took 10 exponential steps (1, 2, 4, 8, 16, etc.) they get to 1024, or about half a mile.\u00a0 If someone took 30 linear steps, they\u2019ve gone 30 yards.\u00a0 But, if they took 30 exponential steps, they\u2019ve gone to the moon and back.\u00a0 Get the picture?<\/h2>\n<div style=\"margin-left: 60px; margin-right: 60px;\">\n<p>Other concepts play into this picture, as well.\u00a0 Setting aside for a moment whether it\u2019s correct, Moore\u2019s Law states that overall computer processing power doubles every 2 years (thus, experiencing bi-annual exponential growth).\u00a0 And the Law of Accelerating Returns, as posited by Ray Kurzweil, states that the rate of progress in an ecosystem that learns via evolution (i.e., iteratively) increases exponentially.\u00a0 The more advanced such a system becomes, the faster is rate of progress grows.<\/p>\n<p>Exponential technology, thus, refers to innovations progressing at a pace with or exceeding Moore\u2019s Law that evidence a renaissance of innovation, invention, and discovery and have the potential to affect billions of lives.<\/p>\n<p>Linear thinking has been hardwired in our brains for millennia.\u00a0 But, today, we\u2019re living in an exponential era.<\/p>\n<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-13 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #235c63;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 10px;margin-top: 20px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-15 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-22\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-subhead-1\">History \/ Eras of the Web<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-14 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-16 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-23 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>Many people think of Bitcoin or conjure images of a volatile wild west of crypto when someone says blockchain, but the truth is it\u2019s just the next logical step in the history of computing models that have had steady breakthroughs every couple of decades.\u00a0 During WWII, we had the first computers that were used to crack the Nazi\u2019s secret code.\u00a0 Several decades later, we had the first mainframe computers for commercial use &#8211; completely siloed systems.\u00a0 In the 1970s, Apple and others gave us the personal computer &#8211; still siloed.\u00a0 Then, in 1990, mass adoption of the internet connected these computers \u2013 we were no longer siloed.\u00a0 This was Internet 1.0 (read only).<\/p>\n<h4>Internet 1.0 spanned 1993 \u2013 2002 and primarily encompassed indexed search.<\/h4>\n<p>It brought us the likes of Google, Amazon, PayPal, Pets.com, eBay and others.\u00a0 These were static sites, portals, email, chat, and finance facilitators and physical goods marketplaces \u2013 all characterized by low bandwidth and limited hardware.\u00a0 Web 1.0 lived primarily on desktop computers. <sup><a href=\"#footnote-2\">2<\/a><\/sup><\/p>\n<p>Then came the advent of the smartphone and mobile computers &#8211; still connected and now able to sync with each other, but only via some form of centralized reconciliation.\u00a0 This was Internet 2.0 (read and write).<\/p>\n<h4>Internet 2.0 spanned 2002 \u2013 2018 and thrived on mobile devices.<\/h4>\n<p>It focused on user generated content, streaming media, and location-based services and introduced us to social networking, broadband, mobile, cloud, SaaS, and gig economy marketplaces.\u00a0 Artificial intelligence and machine learning dominated this period of \u201cfree\u201d access, where the subtle, imperceptible change in your thoughts and actions was the real product. \u00a0Enter Facebook, Instagram, Twitter, AWS, Uber and others. <sup><a href=\"#footnote-2\">2<\/a><\/sup><\/p>\n<p>Now, we have blockchain where the database and the network are fused together to create in-sync networked databases without the need for a centralized authority.\u00a0 This has given rise to Internet 3.0, or Web3 (read, write, and own).<\/p>\n<h4>Web3 began in 2018 and is poised to dominate this 2020 decade.<\/h4>\n<p>Interestingly, Web3 coincides with the advent of our 4<sup>th<\/sup> Industrial Revolution which is being driven by artificial intelligence, DNA sequencing, energy storage, and robotics, in addition to blockchain technology.\u00a0 Thus, as you would expect, this Web3 period is characterized by artificial intelligence and machine learning as a service, bioengineering, sensors, IoT devices and 5G, crypto, space travel and manufacturing, and clean energy.\u00a0 While it\u2019s too early to say who will dominate this period, it\u2019s fairly safe to know that Bitcoin, Ethereum, Starlink, OpenAI and others will play pivotal roles.\u00a0 (Yes \u2013 we\u2019re all aware that Bitcoin, Ethereum, et al were introduced during Web2, but they required maturing and it\u2019s only in this new Web3 world that they can comfortably reign.)<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-15 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #235c63;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 10px;margin-top: 20px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-17 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-24\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-subhead-1\">Blockchain<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-16 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-18 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-25\" style=\"transform:translate3d(0,0,0);\"><p style=\"margin-bottom: 0; padding-bottom: 0;\">Traditional client \/ server architecture consists of multiple clients tied to one or more servers. These servers are centrally owned by various entities. The internet as most people know it is essentially large numbers of these closed systems interacting with each other.<\/p>\n<\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-11 fusion_builder_column_inner_1_2 1_2 fusion-one-half fusion-column-first\" style=\"width:50%;width:calc(50% - ( ( 4% ) * 0.5 ) );margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-2 hover-type-none\" style=\"width:100%;max-width:100%;\"><img src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/centralized-diagram.svg\" class=\"img-responsive wp-image-7342\"\/><\/span><\/div><div class=\"fusion-text fusion-text-26\" style=\"transform:translate3d(0,0,0);\"><h2 style=\"text-align: center;\">CENTRALIZED<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-12 fusion_builder_column_inner_1_2 1_2 fusion-one-half fusion-column-last\" style=\"width:50%;width:calc(50% - ( ( 4% ) * 0.5 ) );margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-3 hover-type-none\" style=\"width:100%;max-width:100%;\"><img src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/decentralized-diagram-pink.svg\" class=\"img-responsive wp-image-7351\"\/><\/span><\/div><div class=\"fusion-text fusion-text-27\" style=\"transform:translate3d(0,0,0);\"><h2 style=\"text-align: center;\">DECENTRALIZED<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-text fusion-text-28\" style=\"transform:translate3d(0,0,0);\"><p>Blockchain architecture is different. It consists of peer-to-peer networks with clients (that send, receive, and read transactions) and validators (that are incentivized to secure the network). These peer-to-peer networks are always open and available and no centralized trusted authorities exist to block transactions or deny access \u2013 thus, often referred to as trustless.<\/p>\n<\/div><div class=\"fusion-text fusion-text-29 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div style=\"color: #ffffff; background-color: #54565a; margin: 10px -60px; padding: 30px 60px 20px 60px;\">\n<p>Quite simply, a blockchain is a database (a collection of data stored electronically) with a key difference in its storage structure. A blockchain collects information together in groups (blocks) that hold sets of information. These blocks have certain storage capacities and, when filled, are chained onto the previously filled block \u2013 hence, block-chain.<\/p>\n<\/div>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:10px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-30\" style=\"transform:translate3d(0,0,0);\"><p>The first block is always known as the genesis block, and for security new blocks are always stored linearly and chronologically \u2013 i.e. added to the end of the blockchain \u2013 once done, it\u2019s extremely difficult to go back and alter the contents of a previous block unless the majority agrees to do so. This is thanks to hash codes \u2013 mathematical functions that turn digital information into a string of letters and numbers. Each block contains its own hash, the hash of the block before it, and a time stamp. Thus, hacking a blockchain would require that the hacker simultaneously control and alter 51% of the copies of the blockchain so that their new copy becomes the majority copy and, thus, the agreed-upon chain \u2013 not to mention having to redo all blocks as they would now have different timestamps and hash codes. Not an easy feat.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-17 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-19 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-31\" style=\"transform:translate3d(0,0,0);\"><p>At the highest level, there are 4 basic layers of blockchain computing:<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-20 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-13 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#cba0b5;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-32\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"color: #ffffff; padding: 22px 1px 1px 1px; margin-top: 20px; margin-bottom: 5px; font-size: 42px;\"><div class=\"fusion-fa-align-left\"><i class=\"fb-icon-element-1 fb-icon-element fontawesome-icon fa-server fas circle-no\" style=\"font-size:48px;margin-top:4px;margin-right:30px;margin-bottom:22px;margin-left:40px;\"><\/i><\/div><style>i.fb-icon-element.fontawesome-icon.fb-icon-element-1{ color: #ffffff;}i.fb-icon-element.fontawesome-icon.fb-icon-element-1:hover { color: #9e9e9e;}<\/style> Base Layer (Layer 0) \u2013 Hardware and Networking<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-14 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-33\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"color: #ffffff; padding: 22px 1px 1px 1px; margin-top: 20px; margin-bottom: 5px; font-size: 42px;\"><div class=\"fusion-fa-align-left\"><i class=\"fb-icon-element-2 fb-icon-element fontawesome-icon fa-handshake fas circle-no\" style=\"font-size:48px;margin-top:4px;margin-right:20px;margin-bottom:18px;margin-left:30px;\"><\/i><\/div><style>i.fb-icon-element.fontawesome-icon.fb-icon-element-2{ color: #ffffff;}i.fb-icon-element.fontawesome-icon.fb-icon-element-2:hover { color: #9e9e9e;}<\/style> Layer 1 \u2013 Consensus and Settlement<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-15 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#235c63;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-34\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"color: #ffffff; padding: 22px 1px 1px 1px; margin-top: 20px; margin-bottom: 5px; font-size: 42px;\"><div class=\"fusion-fa-align-left\"><i class=\"fb-icon-element-3 fb-icon-element fontawesome-icon fa-file-contract fas circle-no\" style=\"font-size:48px;margin-top:2px;margin-right:30px;margin-bottom:20px;margin-left:40px;\"><\/i><\/div><style>i.fb-icon-element.fontawesome-icon.fb-icon-element-3{ color: #ffffff;}i.fb-icon-element.fontawesome-icon.fb-icon-element-3:hover { color: #9e9e9e;}<\/style> Layer 2 \u2013 Smart Contracts<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-16 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#898989;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-35\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"color: #ffffff; padding: 22px 1px 1px 1px; margin-top: 20px; margin-bottom: 5px; font-size: 42px;\"><div class=\"fusion-fa-align-left\"><i class=\"fb-icon-element-4 fb-icon-element fontawesome-icon fa-exchange-alt fas circle-no\" style=\"font-size:48px;margin-top:4px;margin-right:30px;margin-bottom:18px;margin-left:30px;\"><\/i><\/div><style>i.fb-icon-element.fontawesome-icon.fb-icon-element-4{ color: #ffffff;}i.fb-icon-element.fontawesome-icon.fb-icon-element-4:hover { color: #9e9e9e;}<\/style> Layer 3 \u2013 Wallets and Interfaces<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:10px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-18 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-21 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-36\" style=\"transform:translate3d(0,0,0);\"><p>Almost every industry can benefit from blockchain technology. Shepherd is a Layer 3 decentralized application (dApp), bringing the trustless and secure nature of blockchain transactions to the real estate sector.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-19 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #235c63;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 10px;margin-top: 20px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-22 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-37\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-subhead-1\">Fungible vs non-fungible tokens<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-20 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-23 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 60px 0px 60px;\"><div class=\"fusion-text fusion-text-38 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>The building blocks of our new crypto-backed economy are tokens.\u00a0 Tokens live on peer-to-peer blockchain networks and are, essentially, just code.\u00a0 The key aspects are that they\u2019re digitally native, programmable, and cryptographically secure.<\/p>\n<h2>Tokens come in 2 \u2013 really, 3 types:<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-24 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-17 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-first\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 20px 0px;\"><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-4 hover-type-none\" style=\"width:100%;max-width:100px;margin-top:40px;\"><img src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/fm-token-coins-2.svg\" class=\"img-responsive wp-image-7116\"\/><\/span><\/div><div class=\"fusion-text fusion-text-39\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 0px;\">Fungible<br \/>\n(interchangeable)<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-18 fusion_builder_column_inner_1_3 1_3 fusion-one-third\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-right: 20px;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 20px 0px;\"><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-5 hover-type-none\" style=\"width:100%;max-width:100px;margin-top:40px;\"><img src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/fm-token-swords.svg\" class=\"img-responsive wp-image-7113\"\/><\/span><\/div><div class=\"fusion-text fusion-text-40\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 0px;\">Semi-fungible<br \/>\n(fungible within a class)<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-19 fusion_builder_column_inner_1_3 1_3 fusion-one-third fusion-column-last\" style=\"width:33.333333333333%;width:calc(33.333333333333% - ( ( 20px + 20px ) * 0.33333333333333 ) );margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;background-color:#54565a;padding: 0px 0px 20px 0px;\"><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-6 hover-type-none\" style=\"width:100%;max-width:100px;margin-top:40px;\"><img src=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/fm-token-watch.svg\" class=\"img-responsive wp-image-7112\"\/><\/span><\/div><div class=\"fusion-text fusion-text-41\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: center; color: #ffffff; padding-top: 0px;\">Non-fungible<br \/>\n(unique)<\/h1>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-21 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-25 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 20px 60px 0px 60px;\"><div class=\"fusion-text fusion-text-42\" style=\"transform:translate3d(0,0,0);\"><p>While fungibility isn\u2019t something we typically think of, it\u2019s a pretty straightforward concept.\u00a0 Fiat currency is the best example of a fungible item.\u00a0 If someone is lent $50, they can be repaid with any $50 bill &#8211; it doesn&#8217;t have to be the original $50. Hence, cryptocurrencies, stable coins, and central bank digital currencies (CBDCs) are all fungible tokens.<\/p>\n<p>Semi-fungible items get a little grey, as fungibility can be subjective.\u00a0 Think of a ticket on a train.\u00a0 One person might consider a first-class ticket semi-fungible \u2013 it could be replaced with any other first-class ticket without harm.\u00a0 While another person might consider the specific window seat that they booked in first class to be unique. Semi-fungible items can also represent those within a class \u2013 i.e. useful items within a video game, such as weapons or potions.<\/p>\n<p>Non-fungible items, in contrast to the fiat currency example above, are unique.\u00a0 If someone is lent a Rolex, they can only return that exact watch.\u00a0 It\u2019s one of a kind, as denoted by its serial number and unique past.\u00a0 While most people have been baffled by the emergence of non-fungible tokens (NFTs), from a crypto perspective, they represent the vast majority of, well, everything. We\u2019ve had digital items for years, just without immutable provenance \u2013 tickets, domain names, social handles.\u00a0 Those are all NFTs.\u00a0 Now think about all of the non-digital, but still unique items that exist.\u00a0 Those are also NFTs \u2013 or, at least, they can be represented by an NFT.<\/p>\n<p>The ability to represent anything (object, entity, or person) by a token is where it gets interesting.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-22 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #235c63;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 10px;margin-top: 20px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-26 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-43\" style=\"transform:translate3d(0,0,0);\"><div class=\"whitepaper-subhead-1\">The tokenization of everything<\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-23 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-27 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 40px 0px 40px 0px;\"><div class=\"fusion-text fusion-text-44 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>As mentioned previously, tokens are the building blocks of our new crypto economy.\u00a0 And unlike other digital assets, tokens are digitally native (existing on blockchains) programmable, and cryptographically secure.\u00a0 This programmable aspect of tokens makes them the perfect medium to represent all other physical and digital items.\u00a0 Quite simply, public blockchains will be the title registry for everything of value.<\/p>\n<p>Over the past few years, hundreds of companies have emerged offering tokenization and associated marketplace services.\u00a0 Many of these have focused on real estate \u2013 moving the capital table of a real estate asset \/ project on chain via conversion into fungible tokens.\u00a0 In theory, this approach has numerous advantages.\u00a0 Most capital tables are, shall we say \u2013 untidy, and could benefit from the transparency and immutable aspects of a distributed ledger.\u00a0 Investors can feel confidence, knowing that their portion of the capital stack is properly documented and (assuming the proper legalese has been encoded into the smart contract) that they can sell it simply by transferring their representative token(s) to another.\u00a0 Further, because the transfer has been pre-approved and any requisite rights of first refusal dealt with via code, an investor could then offer their shares on private and public marketplaces \u2013 in essence, turning their tokenized private investment into something that looked a lot like a public stock.<\/p>\n<p>That\u2019s when the regulators got involved \u2013 to \u201cprotect\u201d everyone, of course.\u00a0 These fungible tokens were deemed securities in the United States, requiring registration with the SEC and extensive investor diligence and compliance.\u00a0 Securities trading and banking licenses came into play, and the timeline to tokenize went from minutes to months.\u00a0 As one might imagine, this took a process that could be enacted for little to no money and escalated it into the hundreds of thousands of Dollars.<\/p>\n<h2>The real estate tokenization market to-date has failed for one very simple reason \u2013 it never actually tokenized the real estate.<\/h2>\n<p>Real estate is unique; it\u2019s non-fungible and should be represented as such.\u00a0 What these businesses have been tokenizing is the capital table \u2013 the underlying security interest(s) in the real estate.\u00a0 Hence, the myriad of regulatory compliance issues that have plagued the industry.<\/p>\n<\/div><div class=\"fusion-text fusion-text-45 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div style=\"color: #ffffff; background-color: #54565a; margin: 10px -60px; padding: 30px 60px 20px 60px;\">\n<p>Tokenizing the equity is insufficient, as it fails to provide adequate value to asset owners and investors while saddling them with additional costs and compliance requirements.\u00a0 The contractual bundle of owner \/ investor rights is represented as a fungible token, the corresponding capital table is recorded on chain, and all subsequent transfers are recorded on chain via the token movement.\u00a0 In theory, the investor should be able to trade their asset faster and easier and the JVCo should be able to transparently monitor and record the activity.\u00a0 But is a legitimate benefit or is this simply another layer of complexity added to the same process?<\/p>\n<h2 style=\"color: #ffffff;\">Innovation is never born simply by replicating old structures in a new way.\u00a0 We need to explore and create new structures that capitalize on what wasn\u2019t previously available \/ the intrinsic value of crypto and DeFi.<\/h2>\n<p>Real estate transactions have very specific pain points \u2013 namely, reliance on lagging valuation data and the need to engage facilitators to validate the asset valuation and complete the transaction.\u00a0 Tokenizing the equity interests fails to address any of these, as the transaction cycle itself remains unchanged.\u00a0 Asset valuations aren\u2019t a part of this equation and the need to engage multiple facilitators actually increases.\u00a0 Occam\u2019s razor teaches that the simplest solution is usually the best.\u00a0 But here is an industry that hasn\u2019t simplified anything at all.\u00a0 Not a great business model, as the market has taught.<\/p>\n<\/div>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:15px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-46\" style=\"transform:translate3d(0,0,0);\"><p>It&#8217;s no wonder that while these tokenization companies still exist, many have since shifted their business model to serving as end-to-end digital investor onboarding, compliance, and management, including transfer agent services \u2013 in essence, a tokenized CrowdStreet with the only difference being that tokenization adoption has been minimal, while CrowdStreet will deploy over $1.5 billion this year.\u00a0 The thought has been to embrace the digital security aspect, charge for handling compliance, expand the same investor onboarding process to the private equities market, focus on institutional clients, and spin up alternative funds to sell them crypto and DeFi services totally separate from their real estate business.\u00a0 Meanwhile, the real estate industry is left, essentially, where it always has been.<\/p>\n<p>So, if fungible tokens aren\u2019t the answer for real estate, what about NFTs?\u00a0 The emergence of NFTs this crypto cycle has focused on art, film, music, creator coins, personal income streams, and sports.\u00a0 With these tokens, many have touted blockchains making the leap from the financial to cultural realm.\u00a0 Tyler Winklevoss has said that NFTs are \u201cmonetized memes\u201d.\u00a0 Note that this was praise, not an insult.\u00a0 Society grows and evolves via memes \u2013 they\u2019re more important than you might think.<\/p>\n<p>But, what about the leap to the business realm?\u00a0 Cameron Winklevoss has said, ultimately, NFTs will authenticate the world.\u00a0 We couldn\u2019t agree more.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-24 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-28 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-image: url(&#039;https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/part-ii-header-108203887-lighter.jpg&#039;);background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\" data-bg-url=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/part-ii-header-108203887-lighter.jpg\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-20 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:280px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-47\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: left; letter-spacing: .2em; margin: 0 0 20px 100px; font-size: 24px; color: #333333;\">PART II<\/h1>\n<h1 style=\"text-align: left; margin: 0 0 10px 100px; font-size: 48px; color: #333333;\">A Better Future.<\/h1>\n<h1 style=\"text-align: left; margin: 0 0 0 100px; font-size: 48px; color: #333333;\">Fast.<br \/>\nTransparent.<br \/>\nAccurate.<\/h1>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:200px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-25 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-29 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:40px;margin-bottom:40px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-48 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>What has appeared from the outside as chaotic volatility in the crypto space is well understood by those within as requisite cycles of birthing.\u00a0 Each brings maturity (ICOs were a disaster, but look at today\u2019s launchpads) and, equally as important, the funding for each era of innovation.\u00a0 Today\u2019s tool sets are greater than ever before \u2013 layer 1 blockchains, layer 2 scaling solutions, multi-chain functionality, decentralized exchanges, wallets, storage protocols, developer protocols, lending protocols, and stable coins.<\/p>\n<p>The world is at a tipping point \u2013 a gradually, then suddenly moment.\u00a0 With the advent of central bank digital currencies (CBDCs), it will become a requisite that everything can now participate in this crypto-powered digital asset realm.\u00a0 That means that every asset, every person, every entity, every municipality, every income stream, and every experience will become tokenized. \u00a0As one of the oldest, largest asset classes on the planet, real estate will be no exception.<\/p>\n<h2>In this new era, real estate will trade as composable NFTs with non-fungible tokens interacting with their fungible cousins in a seamless ecosystem.<\/h2>\n<p>Smart contracts are Ethereum\u2019s true innovation, allowing for instant and verifiable transactions.\u00a0 A smart contract is simply a program that runs on the Ethereum blockchain \u2013 a collection of code (its functions) and data (its state) that resides at a specific address on the Ethereum blockchain.\u00a0 Note that they are not controlled by a user, but instead deployed to the network and run as programmed.\u00a0 User accounts can then interact with a smart contract by submitting transactions that execute a function defined on the smart contract.\u00a0 Rules are defined and then automatically enforced via the code. <sup><a href=\"#footnote-3\">3<\/a><\/sup><\/p>\n<div class=\"whitepaper-callout-left\">The world is at a tipping point \u2013 a gradually, then suddenly moment. With the advent of CBDCs, it will become a requisite that everything can now participate in this crypto-powered digital asset realm. That means that every asset, every person, every entity, every municipality, every income stream, and every experience will become tokenized. As one of the oldest, largest asset classes on the planet, real estate will be no exception.<\/div>\n<p>The key is that these smart contracts are capable of being programmed to interact with each other.\u00a0 In other words, they are composable.\u00a0 Composability is one of the great innovations to-date in crypto \u2013 allowing for exciting new use cases, as protocols and applications can now plug into each other like Lego blocks.\u00a0 The money Legos of DeFi are one of the great early advances in composability.<\/p>\n<p>Token standardization is critical to composability. <span style=\"color: #235c63; font-weight: 300;\">ERC-20 introduced a technical standard for fungible tokens, providing a list of rules that all Ethereum-based tokens must follow.<\/span> ERC-20 defines six basic functions for the benefit of other tokens within the Ethereum ecosystem, including how data is accessed and the method of transfer.<\/p>\n<p><span style=\"color: #235c63; font-weight: 300;\">ERC-721 was the first technical standard for representing non-fungible tokens.\u00a0<\/span>This standard builds upon ERC-20, adding mapping of unique identifiers to addresses and a permissioned way to transfer these assets.\u00a0 ERC-721 was first pioneered by CryptoKitties \u2013 the breedable collectibles that continue to enthrall their owners.<\/p>\n<p>A semi-fungible token standard emerged soon thereafter, brought forth by the Enjin team. <span style=\"color: #235c63; font-weight: 300;\">ERC-1155 introduced classes of unique assets \u2013 i.e., a video game can have 1,000 swords or suits of armor.<\/span> The obvious usefulness here is efficiency in not having to transfer multiple ERC-721 tokens, but instead easily being able to call a specific quantity with a single operation.\u00a0 It should be noted that this increased efficiency sacrifices data, as the history of any individual sword or suit of armor can no longer be traced.<\/p>\n<p>Most recently, the composable NFT ERC-998 standard was introduced. <span style=\"color: #235c63; font-weight: 300;\">ERC-998 provided a template whereby NFTs can own other non-fungible, as well as other fungible assets.<\/span> Sticking with the CryptoKitties example, a kitty can own a scratching post and a feeding dish (which may contain some amount of fungible \u201cchow\u201d tokens).\u00a0Selling the cryptokitty means selling all of its belongings, but those belongings may also be bought and sold individually by the owner of the cryptokitty. <sup><a href=\"#footnote-4\">4<\/a><\/sup><\/p>\n<\/div><div class=\"fusion-text fusion-text-49 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div style=\"color: #ffffff; background-color: #54565a; margin: 10px -60px; padding: 30px 60px 20px 60px;\">\n<h2 style=\"color: #ffffff;\">Tokenizing the actual real estate.<\/h2>\n<p>Similarly, real estate should utilize this ERC-998 standard.\u00a0 Any real estate asset can quickly and easily be tokenized as an NFT by coding a few key pieces of data.\u00a0 That NFT can now have additional assets within its ownership control, such as the title, deed, or insurance policy (each of which are an NFT in their own right).\u00a0 In the case of commercial real estate, the associated property and operating entities might also be NFTs \u2013 with their associated accounts, income streams and holdings as NFTs and fungible tokens.\u00a0 As one can quickly envision, these composable NFTs are primed and ready to plug and play in the DeFi arena.<\/p>\n<h2 style=\"color: #ffffff;\">Real-time appraisals and analytics.<\/h2>\n<p>The true game-changing opportunity lies in the integration of real-time data to properly value and track these non-fungible tokenized real estate assets.\u00a0Instead of relying on the historic data contained in appraisals and other third-party reports, live data feeds can now be linked to the asset \u2013 constantly validating and re-enforcing census, employment, income, expenses, and a host of other critical information.\u00a0 Artificial intelligence can spot trends and market variances, as algorithms highlight real-time valuations based on immutable data.<\/p>\n<p>Thus, composable NFTs provide value to asset owners and investors by providing immutable evidence of ownership and asset performance via crypto tokens that can be seamlessly plugged into the DeFi realm.\u00a0 Critically, NFTs do not fall under the same regulatory oversight as fungible tokens \u2013 alleviating the need for costly intermediaries and eliminating the associated time delays.<\/p>\n<\/div>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:15px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-50 whitepaper\" style=\"transform:translate3d(0,0,0);\"><p>We now have a blueprint for a market that truly addresses the myriad of real estate transaction issues and eliminates the need for facilitators. This is the real estate market of Web3.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-26 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-30 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-image: url(&#039;https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/mountain-moon-1137890470.jpg&#039;);background-position:center center;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\" data-bg-url=\"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-content\/uploads\/2021\/10\/mountain-moon-1137890470.jpg\"><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-21 fusion_builder_column_inner_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:350px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-51\" style=\"transform:translate3d(0,0,0);\"><h1 style=\"text-align: left; letter-spacing: .2em; margin: 0 0 20px 100px; font-size: 24px; color: #ffffff;\">PART III<\/h1>\n<h1 style=\"text-align: left; margin: 0 0 10px 100px; font-size: 48px; color: #ffffff;\">A New Market for a New World.<\/h1>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:300px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-27 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-31 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:40px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-52 whitepaper\" style=\"transform:translate3d(0,0,0);\"><h2 style=\"text-align: center;\">The tokenization of real estate as composable NFTs is real<br \/>\nand closer than one might think.<\/h2>\n<h2 style=\"color: #235c63; text-align: center; margin-top: 40px;\">Shepherd is the gateway to this bold new world.<\/h2>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-28 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-32 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:40px;margin-bottom:10px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-53 whitepaper\" style=\"transform:translate3d(0,0,0);\"><div style=\"color: #ffffff; background-color: #54565a; margin: 10px -60px; padding: 30px 60px 20px 60px;\">\n<p>The market opportunity is two-fold:<\/p>\n<ol>\n<li>Tokenizing residential and commercial real estate via composable NFTs and providing the existing ecosystem(s) with real-time asset valuation and underlying data; and<\/li>\n<li>Operating a marketplace for these NFT-backed real estate assets, ultimately eliminating the need for facilitators<\/li>\n<\/ol>\n<p>The first recognizes the existing facilitator-heavy ecosystem as customers, while the second (itself a mature, fully tokenized ecosystem) eliminates the need for them entirely.\u00a0 Put another way, the first solves the critical flaw of lagging data, while the second goes beyond and further solves the problems of uncertainty, cost, complication, and time.<\/p>\n<\/div>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;margin-top:15px;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-text fusion-text-54 whitepaper\" style=\"transform:translate3d(0,0,0);\"><h4>Trustless, Real-Time Appraisals<\/h4>\n<p>While the tokenization of the asset per the ERC-998 standard will, itself, confer numerous advantages, Shepherd\u2019s true differentiator is the ability to convey trustless, real-time asset valuation utilizing proprietary appraisal algorithms blending the Income Capitalization and Sales Comparison (Market Data) Approaches. Live market, asset, IoT, and 5G feeds will validate and re-enforce the underlying data used in the appraisals \u2013 including census, employment, income, expenses, demographics, psychographics, competitive sets, and vast amounts of other critical information. These integrations will continue to grow over time, providing even greater swaths of data to train Shepherd\u2019s AI.<\/p>\n<h4>AI meets Blockchain<\/h4>\n<p>AI training costs are dropping at a rate of 68% per year. That translates to software that is better, cheaper, faster, and more creative \u2013 in other words, greater insights paired with a greater user experience. Simultaneously, blockchain technology is rapidly evolving \u2013 laying the requisite infrastructure rails for our new 4th Industrial Revolution economy. The next advances will take place at the intersection of AI and blockchain \u2013 incorporating both on and off-chain data in a holistic ecosystem.<\/p>\n<p>In addition to the behind-the-scenes learning and filtering to better address its user\u2019s needs, Shepherd is designed with an AI-driven ephemeral insights panel that can be shown or closed at the user\u2019s discretion \u2013 thanks in part to the ability to digitally extract, query and analyze in real time large and diverse sources of structured and unstructured data. As always, the most exciting discoveries will come from what isn\u2019t being looked for. Shepherd is a new paradigm \u2013 and once adopted, the global asset data flow will provide fertile hunting ground.<\/p>\n<h4>In Summary<\/h4>\n<p>Shepherd Markets provides a regulatory-compliant solution to tokenize both residential and commercial real estate. Real-time data and a solution built for Web3 bridges the gap between old world assets and our new digital reality.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-29 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:60px;padding-bottom:0px;padding-left:60px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-33 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:10px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-55\" style=\"transform:translate3d(0,0,0);\"><p><div class=\"fusion-menu-anchor footnote-link\" id=\"footnote-1\"><\/div><sup>1<\/sup> <a href=\"https:\/\/en.wikipedia.org\/wiki\/Real_estate_economics\" target=\"_blank\" rel=\"noopener\">Wikipedia \u2013 Real Estate Economics<\/a><div class=\"fusion-menu-anchor footnote-link\" id=\"footnote-2\"><\/div><sup>2<\/sup> <a href=\"https:\/\/docs.google.com\/presentation\/d\/1sUpk0gbvRQelH0MUIOqjNeGe8nwRH4mhrhDHmI6qh4M\/edit#slide=id.gbfbce9e29a_0_571\" target=\"_blank\" rel=\"noopener\">Patrick Rivera \u2013 Crypto Fundamentals and NFTs<\/a><div class=\"fusion-menu-anchor footnote-link\" id=\"footnote-3\"><\/div><sup>3<\/sup> <a href=\"https:\/\/ethereum.org\/en\/developers\/docs\/smart-contracts\/anatomy\/\" target=\"_blank\" rel=\"noopener\">Ethereum.org \u2013 Smart Contracts<\/a><div class=\"fusion-menu-anchor footnote-link\" id=\"footnote-4\"><\/div><sup>4<\/sup> <a href=\"https:\/\/mattlockyer.medium.com\/love-your-writing-36053c7636f6\" target=\"_blank\" rel=\"noopener\">Matt Lockyer \u2013 Introducing Crypto Composables<\/a><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"100-width.php","meta":[],"_links":{"self":[{"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/pages\/7237"}],"collection":[{"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/comments?post=7237"}],"version-history":[{"count":67,"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/pages\/7237\/revisions"}],"predecessor-version":[{"id":7385,"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/pages\/7237\/revisions\/7385"}],"wp:attachment":[{"href":"https:\/\/bluesouthcreative.com\/staging\/sm-whitepaper\/wp-json\/wp\/v2\/media?parent=7237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}