Tech entrepreneur and billionaire Mark Cuban expressed interest in a transformative crypto real estate project to integrate smart contracts and non-fungible tokens (NFTs) to facilitate construction and urban development.
This development follows a proposal by Jason Calacanis, a serial entrepreneur, to build ten new cities across the US, each housing a million units. These cities are envisioned to redefine urban living with an emphasis on sustainability and affordability.
Cuban’s vision for crypto-driven real estate
Cuban took the conversation a step further. The billionaire investor’s proposal involves utilizing a blockchain-based smart contract that operates on a layer-2 scaling solution to ensure privacy and efficiency.
According to Cuban, the smart contract is programmed to verify construction permits autonomously using an oracle, a mechanism that feeds external data into the blockchain.
Upon successful verification of a permit, the contract then produces an NFT. This NFT represents a developer’s entitlement to receive $250,000 in USDC, a stablecoin, as detailed by Cuban.
Cuban also proposes the use of a multi-signature wallet to enhance security and provide mutual protection for the parties involved in the transactions.
However, some have raised questions about the necessity of using a ZK-rollup, a complex blockchain solution, for this purpose.
In response, Cuban highlighted the simplicity and security advantages of using a multi-signature wallet for managing project funds.
Calacanis, on the other hand, recommended the adoption of a more conventional, trust-dependent approach for transferring funds.
Cuban’s interest in this innovative blend of cryptocurrency and real-estate mirrors his broader advocacy for the practical and beneficial applications of cryptocurrency beyond mere investment opportunities.
In an Oct. 2023 interview, he expressed concerns about the perception of cryptocurrencies, noting, “[m]any associate crypto primarily with speculation. However, that’s not the true essence of what cryptocurrencies represent.”
“Crypto is really about creating new applications that make things better and easier. What crypto is missing is that one application that grandma really wants to use.”Mark Cuban
Despite his passion for the industry, Cuban has encountered hurdles in his cryptocurrency endeavors. In Sept. 2023, he experienced a significant setback when he fell victim to a cryptocurrency scam, resulting in a loss of nearly $870,000.
Cuban was taken by surprise, only becoming aware of the scam after noticing the absence of 5 Ethereum from his wallet, which was worth approximately $8,175 at that time.