Why Propbase uses Aptos and Blockchain Technology

Why Propbase is Building on Aptos Blockchain

Our leadership team believes the Aptos blockchain is going to revolutionize the industry going forward. 

The Aptos blockchain is a layer 1 solution created for safe development, and built with user experience as a core focus. The transaction process uses byzantine fault tolerance, proof of stake consensus mechanisms, and has the highest transactions per second (TPS) for any layer 1 solution in the market. 

Aptos has its own tools including, its own virtual machine and the Move Prover, a formal verifier to check smart contract correctness. This is what makes the Aptos blockchain a potential Solana killer, by Solana's own admission. 

The Move Programming Language

But our leadership team is most impressed with the rust-based native programming language called Move, designed specifically for smart contracts.

The Move programming language empowers developers like Propbase, to create applications simply, securely, and swifty. Aptos focuses on an enhanced user experience with a parallel batch-optimized, modular transaction processing pipeline, plus innovations like Block-STMs. 

Parallel execution can handle multiple transactions at once. This makes things move a lot quicker because a single failed transaction won’t halt the whole chain, transactions can be processed concurrently, and all transactions can be validated post-execution.  

This coupled with an effective track record in upgradability, through modular architecture, ensures longevity and sustainability of the blockchain applications building on it. 

Designed with high scalability, near instant throughput, and with low fees in mind, the Aptos blockchain is an ideal solution for the Propbase DApp. Propbase is designed to navigate both crypto savvy investors and non-crypto natives to interact with the platform for all secure property transactions.

Why Propbase uses Blockchain Technology

We have chosen blockchain technology as a fundamental part of our business model to develop an immutable ledger of all transaction history on the platform and the benefits of smart contract functionality to reduce redundant and time consuming processes in updating the membership list for each property being traded on Propbase. 

Smart contract utilization is the primary driver of enabling the Propbase platform to reduce the minimum fractional purchase amount to as low as $100 and an unlimited change in the membership list of each property LLC that is in line with current regulatory and legal frameworks. 

While property tokenization has existed for quite some time, the current fractionalized investment structure does not improve the liquidity for retail investors. Currently, most tokenized investment platforms are easy to make an initial investment amount but remain difficult for existing investors to sell their shares/tokens to other users. 

Each change in the membership list is processed in a high friction and time consuming manner, where every time there are new investors, the company has a cost to update the LLC and government registry, which is often a paper driven approach done in a manual way. 

The result is the platform has to offer a larger back end office to support more transactions, this can only be done in the form of hiring more administrative staff and paying more salaries. But the downside being these costs are often passed on to the consumer in the form of fees.

This is why most fractional property investment platforms have a high minimum investment amount of between $5,000 and $50,000 USD. However, there are also restrictions and penalties tied to the minimum investment duration. 

If a retail investor wants to sell their tokens early on, they are often charged additional fees or could have a portion of their income taken as a penalty. 

As a solution Propbase does not have a dedicated back end office operation because we have put ownership of the holding entity on the blockchain. All property assets traded on the platform are securely held in a LLC, owned by the token holders, and all supporting documentation related to the property is securely stored on the blockchain.

As a result, anyone can publicly see which wallet owns, which property, and how much of that property that wallet owns. Propbase never has to update the members ownership list and information. 

In line with all legal and regulatory requirements, should a government have a valid claim to request ownership information beyond that of wallet addresses, we can quickly and cost efficiently output the names associated with the wallet addresses. The time and labor savings are directly and proportionally passed on the individual token holders in the underlying asset. 

This is one of many main drivers that allow us to significantly reduce the barrier to entry for real estate investment for as low as $100 USD, as well as enabling token holders to freely sell their tokens as often as they would like, without any penalties or high transaction costs. 

The utilization of trusted and audited smart contracts, and the costs saved in updating the membership list of the holding entity is what truly sets Propbase on its mission of “making property investment accessible to everyone” and all thanks to the use of blockchain technology. 

Join our community today and watch us transform property investment into a modern liquid asset class!