A Philadelphia-based startup, Kognition, has launched what has been called the "world's first open and open intelligent property economy" to create a real-time flow of opportunities to generate revenue, reduce risk, optimize performance and increase ROI. The effort based on the blockchain it's called Koin.
Koin is designed to facilitate a "synergistic" relationship between smart property owners, traders, builders and sellers to maximize value for each part. Likewise, Koin supported by Kognition is designed to enable the creation of a decentralized and autonomous intelligent property and can be built, managed and exchanged effortlessly and securely in an open economy built specifically for intelligent property, according to a statement from the company.
Kognition's managing director, Matias Klein, announced the November 2018 effort at the Dreamit x Bisnow Innovation Summit in Tampa, Florida, attended by the reporter. Klein said he hopes that Koin can help Kognition decentralize and bring the safe benefits of the blockchain to the real estate market, and said it has "great aspirations" for the opportunities that Koin presents.
"We believe this is a new way of doing business," Klein said at the Tampa event. "This is a tidal wave, it's coming and it will be huge".
We try to offer some perspective on the statements. For Kognition, the platform is designed as a blockchain system to allow users to create, control and exchange smart properties. Users can purchase Koin tokens that can be exchanged with intelligent properties, software, hardware and services. With an open governance system, the platform will be controlled by its users with each token offering a rating, the company says.
Here is the juice: The platform, Klein said, is defined as any property whose property is controlled through blockchain on a decentralized ledger using smart contracts. It can be a physical property such as land and buildings, he said, but it can also be a non-physical property like the actions of a company.
An advantage of property control in this way, said Klein, is the security offered by the blockchain, which allows proprietary data to live on an unalterable ledger without central authority and allows "interoperability", so that the property can integrate with other systems.
The free, open source product is designed to facilitate multiple types of commercial real estate transactions, Klein said, making it easier to split ownership of multiple parts. Koin can also facilitate transfers of digital securities and create unalterable mortgage documents.
Currently, Koin is offered in private presale with tokens that go public in April 2019.
"Property is transforming from analog to digital," Klein said. "From physical to virtual, we believe that autonomous intelligent ownership is the future and we think that it will transform industries on all fronts".
As for the Koin token offer, a total of 1 billion tokens will be coined. Of these, 25% will be reserved for Kognition. Kognition will block 90 percent of its tokens, which will be released on a 10-year vesting plan.
Ten percent of the tokens will be donated to the Safer Smarter World Foundation (SSWF) charity to provide the K-12 schools in need of free AI-based intelligent security systems. SSWF will block 90 percent of its tokens, which will be released on a five-year maturity plan.
Ten percent of tokens will be reserved for Koin network validators to gain in the system; 10% of tokens will be reserved for a Koin project fund that will fund projects that extend the value of the Koin ecosystem. Finally, 45% of tokens will be offered to investors in private sales and in a public ICO.
The concept of smart contracts was introduced by Nick Szabo, a law scholar and cryptographer in 1994. He came to the conclusion that any decentralized ledger could be used as a self-executable contract which was later defined as a "smart contract".
These digital contracts can be converted into codes and can be executed on a blockchain. Although the idea of smart contracts was born a long time ago, the current world works on paper contracts. Even if digital contracts are used, the involvement of a reliable third party from the system can not be eliminated.
Koin token holders will have the right to vote on each proposed project. The approved projects will receive funding, spotlight on the market and community support. If applicable, any token received from funded projects will be distributed in a professional manner to Koin token token holders. This incentive works as a sort of special reward for Koin's long-term token holders and community sponsors.
Koin token holders will also create and vote on the Koin road map and the road map will always reflect the needs and priorities of most Koin token holders. A Koin token entitles the token owner to one vote in all matters relating to Koin's governance.
The global real estate market (real, intellectual, personal and digital) is the largest existing market. Valued at $ 228 trillion by the end of 2016, the global real estate market alone is already the largest asset class in the world, largest of all equities, equities and bonds combined.
"It is theorized that in the not too distant future, this new category of intelligent properties could very well become one of the biggest asset classes in the world," says Kognition in a white paper announcing Koin.