A research in recent history, tracing the future of conventional real estate.

? Copy right — Arms &McGregor International 2022

Written for The Foundation of International Blockchain and Real Estate Expertise — FIBREE

A paper by Makram H. Hani — FIBREE Executive Board, Founder & CEO Arms &McGregor International? , GCC B.D. Blocksquare , Oceanpoint.io

3rd of March 2022

This paper is an examination of recent history while in a dialogue with myself. My purpose of the dialogue was to clear things in my head about the why, the how and the what ifs. I share it with you as it occurred without any editorial touches added. Why? I wanted you to live the same dialogue and have one arise between you and yourself. It is always healthy to challenge your ideas and have others challenge them as well. Remember what I always say and deeply believe in: Knowledge is cumulative not eliminating. Does a paper need to be so serious. Not really! At least this is what I see. The proof is in the pudding and here are my simple thoughts (The Pudding) hoping to add value to you in very simple terms, without any complexities, tech expressions (not that I know how to if I wanted ??) yet Just saying. This was an attempt to manage your expectations, don’t fall for it.

Contents:

· The evolution of records

· The evolution of owning and transacting economic rights (all what derives from an asset or a company)

· The evolution of our behavioral DNA

· The evolution of finances

· Tracing the future of property purchasing and selling

Let’s examine real-estate ownership and transactions. This includes rights of ownership, recorded in a register, and when transacted go through a process to record the change of ownership. The property gets purchased through cash or utilizing a mortgage, mainly to be utilized as a first home, a second home, a place to park some money for long term in land, or a cash flowing asset.

Here are few elements that i decided to dissect and examine, each independently, and here is what i found:

The evolution of records:?Records of everything starting by births, marriages, car ownership, shares and economic rights in companies used to be inked on big books with witnesses confirming authenticity. With time this evolved and we started having a general register for all such records on a city level. Time passed again and we started recording multiple copies of the register, on a country level to guarantee accuracy, none manipulation of records and secured records from loss or the impact of natural elements on ink and paper. As time passed by and our nations became computerized we moved records to computers, that made them easier to search through and further from rats and humidity. Yet this method was also hit by evolution and hit hard, as we discovered that computers aren’t secure enough and data loss is a possibility, we started duplicating the records and mirroring the storage containers. Remember with every one of those steps, came an initial rejection, then none trust so we ended up moving to the new method however retaining the old method, until it became obsolete.

With time the cloud dominated, and everything ended up on the cloud.

Did anything come afterwards..

not yet,

so will the cloud live forever.

aha there are some claiming that Blockchain and decentralized distributed ledgers are a better way to store records.

is it?

Oh God, so is it being adopted by some governments and major companies now.

are we still retaining the old method? Ok understood we are getting to the realization that blockchain is a better way to store records.

Did we start storing everything on blockchain. Really! so even Land registrars similar to Dubai Land department started recording title deeds using a distributed ledger. Yes they are recording titles on the blockchain.

More secure, currently with no way to manipulate (Probably a way will be found to do so very near into the future) and then we will move to a better technology.

For now blockchain is the best thing we know and the new gig, the most recent of the innovations and the best way to store records.

Blockchain to Cloud is what computers are to the big books stored in the back room of the town hall.

So blockchain it is — at least for now and for some time to come.

The evolution of owning and transacting economic rights (all what derives from an asset or a company):?You used to own your own cave, your own garden, your own canoe. All changed when we started thinking of the power in the collective effort as well as the benefit of risk mitigation through risk distribution. I will not take you through much details yet will land in history on the start of the first cooperation (cooperative). Merchants in England found that some of them are going out of business just because a ship owned by one of the merchants was either raided or faced by a storm.. they wanted a solution that allowed them better rewards of such risky business, yet they worked adamantly to find a fix as it was a very profitable business.

They thought of distributing the risk and came up with the concept of cooperative. There system said that multiple ships are owned by a cooperative which is in turn owned by a collective of them. While each owns a share in each ship rather than the full of it and the traded goods, a failure of a voyage was no longer a catastrophe.

This concept evolved with time and started getting used for companies, as well as ownership and transaction of many assets and structures that had economic rights attached to them.

Harvesting the bigger power of the collective, while reducing the risk on the individual. It is a no brainer.

This became a way that evolved to support innovation through crowd funding and other methods.

It is a system of valuing entities, structures and assets based on value they generate and transacting a share in it based on your view of the change in value with time.

I am sure you are not able to imagine a world now where the only way for you to own a part of a cellphone manufacturer is to purchase the whole company, or to start a company that designs futuristic chips you will need to mortgage your inherited house and put your generational wealth on the line. After you do so the family will either go extinct or sit on top of the world.

And for a city to be able to rebuild after a hurricane the city requires tens of years while people in the interim go back a hundred years in their lifestyle, and live in tents rather than houses.

Yes. I see what you see. This evolution made it possible for us to get to where we are. And there will be further evolution that is brewing as we speak that will even take us to better places as humanity.

The evolution of our behavioral DNA:?How many of us a 100 years ago were trying to change the world?

Is your answer very few? Well done.

We have been driven by trying to increase the stability of things. We targeted and worked towards stability. We were measured as communities by the level of stability we sustain. Evolving from our old us, those ancestors who moved village to another, source of water to another…

One day we arrived alongside the evolution of several elements around us to adoption of an ever-evolving mindset. Our understanding to what’s right, and our perception of stability, prosperity and growth started changing. Our habitual behavior started getting the impact of what we were living. Changing times, changing risks, changing the meaning of community, and changing the impact or major beliefs. It is simple; the loyalty to rooted rules was changing, and with it our behavioral DNA.

Patterns of emotion evident through reactions to the world around us were changing forever, new patters were developing.

How many of us want to change the world today? Ya, ya it is approximately all of us. At least most of the generation Z and some of the others.

How many of us can change the world today? yes you are on a streak. You are right again, the answer is most of us.

I believe that knowledge is compounding, not eliminating. The faster knowledge can circulate the faster we can get the ability to build on the accumulated results of one another.

And today knowledge can circulate in seconds to every spot of the world. This is the evolution in us sharing knowledge. Yet the coming evolution is in us acquiring knowledge and living experiences.

Children and adults are acquiring new skills, developing new emotions and reaching new realizations by living experiments in a virtual world.

When you used to train on flying a plane you used to use a flight simulator, it allows you to live experience of flying and prepares you for what may come on flight.

Imagine having a life simulator, yes, a life simulator, and this is what the metaverse is.

Nevertheless, it has the potential to become a major part of life. Call it a section of every life. You will live part of your life physically and another part virtually. You will interact with the world around you virtually, you will develop new sets of emotions…

It is simply an evolution of our habitual behavioral patterns; it is an evolution of our behavioral DNA taking place.

The metaverse is being resisted as it is to life what aviation was to transport.

Is it coming? actually It is here. Remember with a new medium comes a new way of transacting, owning, interacting and much more.

Do you agree with the thought that this is the evolutionary route we are on. I thought you would. I am sure you are not similar to some ignorant people, who continue denying it even after it happens.

I am sure you don’t expect to use the usual currency bills on the metaverse. Unless we can use pictures of it. Picture?? Ya pictures, and is there a way to make pictures of currency stand the value that currency stands as a unit of exchange. Can we make it none duplicable, difficult to counterfeit and possible to account for and to pass on and hold.

Is it possible to do so by encrypting it, and giving each unit of it unique characteristics, and create a medium and rules of exchanging it. So making it exactly similar to the currency note but as a picture or in a digital format. What!! Cryptography allows us to do so. Great so we can have a digital form of this currency. Aha isn’t that crypto currency. Ya ok understood there is many forms of crypto currency and not all of it hold value and some of it is value abused but isn’t that great we found the tech that will allow us to do so, effectively and transact it efficiently.

But Makram what does this have to do with this section, isn’t it about habitual behavioral DNA or is this only good jargon that you thought of using.

Give me a second and hear me (or read me ) out here. So we have a virtual part of our life, connected and completing another part of our life, and both are aligned. We created new tools to live normal life virtually. Although evolution guarantees that no technology or solution is a final solution, every thing is transitory and we will be living and evolving with this. Our values and how we perceive them, our feelings and how we express them (LOL) and our relationship and interaction with the world around us is also evolving. We are new people in an ever-evolving world, and yes we are living the biggest habitual behavioral DNA evolution that we have seen since some time.

Ehe do you see it now ??

The evolution of finances:?a long time ago when seasons were bad, neighboring villages lent their neighbors seeds to start new seasons. The world was run by an economy of what is physically available, produced, traded and consumed. The only way the economy or GDP could grow is by growing what is physically produced, traded and consumed. This formula didn’t suite us and we wanted the ability to grow our economy bigger, faster, with little relevance to what is physically available. The form of lending and value creating at that moment changed. We started creating institutions to systemize this development. Central banks were created, and as for every trade you need brokers, here came banks. Banks, guided by the rules and processes set by the central banks, brokered and mediated to facilitate all such financial transactions. Recently (few years back) this started evolving by the development of some neo financing which motivated different practices similar to peer to peer transacting.

Yap and the day you were expecting arrived: a technology saw light where central bank rules and processes are maintained and monitored through a decentralized protocol, and this guides and guards all peer to peer transactions without the need for a human, bank, or intermediary. The protocol facilitates it all.

It is called DeFi. Doesn’t it seem obvious that it is an evolutionary step to guard what is coming!!

Tracing the future of property purchasing and selling:?So Makram you told us all about history to get back to property. Hehe, yes isn’t that fun and logical for someone like me.

Property, owned, ownership recorded, funded, transacted and utilized.

I will start with how we think about owning property. Do we still perceive property the same way, is it still necessary to spend 100 million USD to get benefit of owning that shopping mall. This have long evolved, we have entities that arrange private equity transactions and allow us to buy into a 100 million USD deal for half a million Dollars. We also have REITS and funds that allow us exposure to billions of assets spending 10,000 USD only.

Is it more logical to be able to own interest in 50 properties in 6 countries using 100,000 USD rather than owning one property only. Isn’t this diversifying the exposure so reducing the risk while still getting the benefit.

Is it possible to arrange things in a way where I buy as much as I can afford of my house, so I start collecting rent or reducing the rental burden from the parts that I own, without a mortgage and without long term commitments?

Is there a way to make this systematic, while reducing the probable costs of plenty of parties involved as structuring entities or middle men?

Is it also possible to create a record of that purchase in a none manipulatable and seamless way.

Do I live most experiences in my home going forward, the shopping, the dance studio, the work, and will this impact how I look at my home.

Can I pledge a part of what I own of the property in a second any time I wish, against some urgent cash so that I can sort an urgent errand.

Can I build the house I would love to build and live in while funding it fully from having the community own part of it and I own the other part. I consistently buy into it with time while I pay rent for the other part.

Does all of this sit within the parameters of evolution that have taken place in history.

How!

Can we record the property ownership on the blockchain as the most secure and efficient way to record ownership, split it to thousands of small shares to alloy the cooperative concept reducing risk and maintaining benefit. Fund it using DeFi as the most advance way to fund a project. Distribute all rewards based on the shareholding in a systematic manner.

Is this in line with evolution of every limit.

Oh we can do so! How? It is called tokenization and locking value through DeFi.

The flow of evolution in each of those elements and sectors leads us to a clear conclusion.

How about defining the conclusion you draw below. Till next time, give me the opportunity to build on your knowledge.

CIAO!!

? Copy right — Arms &McGregor International 2022