BitRent: Hello! Thank you for taking the time for our interview! First of all I'd like to ask you the following: "What's your opinion about the development of blockchain in financial and real estate sectors?
Zhang An: Good morning! I'm very happy to have the opportunity to have a face-to-face communication with such an amazing company. I believe that the development of the blockchain technology is the main technological tendency in the modern world. Why? Blockchain is a public, transparent and decentralized innovative technology that meets the needs of our era.
Using blockchain in real estate allows to solve numerous problems that exist in this area. I greatly value the role and importance that blockchain can have in the real estate sector.
Chen Qingfeng: When it comes to blockchain, a lot of people think that this technology is difficult-to-understand. In my opinion, this is a record register that is impossible to fabricate. We know that he information transfer happens very quickly.
For example, your email can be sent to any corner in the world. However, when it comes to the financial sector — international transfers — you may notice that transaction takes way too much time and one has to pay a huge commission.
Blockchain, in its turn, is characterized by the impossibility of information falsification. Besides, the technology is decentralized so there's no need to have a financial intermediary or bank, like in the mentioned above case regarding money transfer. Blockchain allows to perform direct transactions "on a point-to-point basis," which leads to huge economy of time. Talking about the real estate area, it tackles a lot of issues, for example registering property titles.
When in 2015 we first got to know with this technology, many people recalled problems that emerged during the land title ownership issue in Honduras. In May 2015 I found out about Factom startup that began to study the ways of applying blockchain to register land title ownerships. To my mind, it's a great direction for development. That's exactly why blockchain is to integrated in numerous sectors, including finances and real estate.
Ling Feng: Actually, my opinion has similar traits with those of my colleagues'. The birth of blockchain is set to solve issues in various sectors that are currently unable to work it out in a traditional way.
If these issues will be improved or even completely solved, the value of the blockchain technology will be huge in the future. Blockchain is integrated both in the real estate and other areas, and actually deals with its challenges. That's why I believe that having such favorable conditions, the technology has huge potential for growth and development.
BitRent: Thank you very much! I also want to ask you a question with respect to our project — BitRent. The BitRent audience grows. Tell us please, how did this project draw your attention? What do you think the future holds for it?
Ling Feng: When I first met the BitRent project, a thought hit my mind whether it would solve the currently existing issues in the real estate sector or not. The real estate market is growing extremely fast, but this process has specific difficulties.
Is it possible for us to solve them the help of blockchain? Well, I think BitRent can deal with it and the project has huge potential.
Chen Qingfeng: We joined the cryptocurrency market back in 2014–2015. So, we're basically crypto enthusiasts. Having studied the business model is of BitRent and its WhitePaper, I clearly understood that it's a great investment decision.
It appears to me that applied approach will be the very next direction of the blockchain development. As Ling Feng has just mentioned, blockchain's potential has to be completely unlocked in the area of real estate. The question we come up with is whether it's capable of solving existing issues or not.
Nevertheless, we may notice that BitRent's WhitePaper clearly describes the problems in the real estate sector, especially when talking about investing.
For instance, you want to invest in real estate objects abroad and right away we face a problem with international money transfers. Besides, real estate investments are all about high entry barrier, while BitRent has a noticeable advantage — low entry barrier. One square meter, for example, costs only 500 American dollars and you're free to take part in investment endeavors. Another advantage lies in its transparent register built in blockchain. Investing requires transparency, with blockchain and real estate combination allowing to provide transparency for construction processes.
How blockchain is capable to provide transparency for construction processes?
Thanks to a quick development of technologies, the construction sector uses RFID tags — technology of radio-frequency identification. RFID tags allow to record all information about the construction process and place it on blockchain. Smart Contracts provide the necessary speed for transactions, authenticity of records and makes sure that the data is not falsified.
That's why I think that numerous sectors haven't yet found the meeting point with blockchain, while the BitRent team managed to do this — the company works in the real estate and construction for a long time already is aware of all problems and difficulties. This is the main reason why BitRent found this meeting point.
BitRent: Thank you. We hope that our cooperation will develop and become better and better.