Total global Real Estate was valued at over $378.7 trillion at the end of 2022 (Savills article by Paul Torstevin). This eye watering sum remains the largest store of wealth across all sectors. Yet only 1.1% of the global population own nearly half of the world’s total wealth (Source: Credit Suisse Global Wealth Databook 2021). Due to the complex nature of real estate investment and the traditional need for trusted intermediaries, many real estate investment opportunities are not possible for the average person.

Nearly 40% of global carbon dioxide emissions come from the real estate sector (Source: Forbes article by David Carlin Apr 5, 2022). Approximately 70% are produced by building operations, while the remaining 30% comes from construction.

An estimated 150 million people are homeless globally, though the real number is probably higher (Source: The World Economic Forum website article by Patrick Henry Oct 2021).

The Xcavate blockchain protocol aims to tackle these issues by leveraging the power of blockchain technology, digital identity, smart contracts and oracles to introduce transparency, security,  accessibility and sustainability to the real estate market.

Loan evaluators review real estate development loan applications that are generated on the platform. They are incentivised to evaluate loans correctly as they earn rewards for successful evaluations and are slashed for unsuccessful ones. This reward function acts as a vehicle to deliver higher than average loan repayments, thereby reducing risk for the community.

The easy to use App guides the user through the loan application process, which only takes minutes to complete. Checks are then made to ensure information accuracy and to apply a personalised APR rate to the loan offer. The more environmentally friendly the construction is, the better the loan APR.

Once the loan offer has been accepted, all transactions are securely and immutably recorded on the blockchain.

Initially the full loan value is locked, then development project funds are transferred in to the property developers digital wallet in a timely manner based on the build schedule and evidence submitted. The real estate developer can choose to repay the loan using traditional property sale funds or opt to sell some or all of the properties by minting unique NFT (Non- Fungible Token) fractions of each property, through the Xcavate NFT marketplace.

As this is a new and unique concept we have tried to simplify the process in to three short explainer videos, each is no longer than 90 seconds.

Ownership Interest is a method in which several unrelated parties can share in, and mitigate the risk of ownership of a high-value tangible asset, in this case real estate.

Our protocol allows pre-vetted properties to be listed from all around the world, which gives you the opportunity to invest in multiple properties and locations.

Unlike traditional fractional ownership funds our platform offers the opportunity to purchase as little of a specific property or as much as you like.

Purchasing NFT’s allows investment into any of our new properties, without the legal and purchasing costs associated with buying a traditional property. This dramatically speeds up the process and taking the hassle out of real estate investment.

This kind of property investment appeals to a wide variety of retail investors… from parents interested in saving for their children’s future or an established property investor looking to reduce risk by investing in several properties in different geographic areas.

A key factor with the Xcavate system is that no property ownership or legal experience is necessary, as a property management company is automatically appointed to look after all the day to day administration, leaving the investor to just focus on choosing the right property for them.

The protocol is designed to utilise a percentage (to be decided by governance) of the fees generated, which focus on issues in the following areas; Environment, Ecological & Social.

The first application realXchange is an NFT marketplace, which facilitates pre-vetted project managers to create, manage and deliver projects of real value to global communities.

NFTs can be minted and sold, then the NFT holders have voting rights throughout the various stages of the project.

In addition, while the Polkadot network is one of the most environmentally friendly blockchains, we will look to offset the Xcavate CO2 footprint by buying carbon credits to make our platform planet positive.