What is Trustless

What is trustless?  trust and then less like like no trust. Zero trust. Like we don’t trust anybody. And what is that as it relates to real estate? So the way that we’re currently doing things is we’re like kind of in Web 2.0 in the early nineties.

We’re in Web 1.0 where we had all these static web pages and then we went to like the centralization of things and we had these big tech companies that we. I decided to trust and they could like track us and do all these things. And it was all the stuff was centralized.

And we have like huge monolithic companies that are in charge of everything and we adopted to like trust them. Then we decided like now we shouldn’t trust anybody going forward. So if we talk about like the new version of the Internet, that’s kind of going all around and it’s going to take a while to adopt.

But it has this concept of being of not trusting a certain person and getting rid of the centralization of certain things. So how does this relate to you and why is it important to real estate? So the concept of not trusting this single entity is going to come down to something very, very similar to kind of like Zillow and real estate.

So Zillow came out and Zillow buys showing time, right? They’re showing service. They’ve also bought like a whole bunch of other companies. But what they did is they keep acquiring these companies that we trusted. And what we did it was really, really a funny thing is we’re like, all right, we trust you look fine. We trust you. And we’ll give you this and we’ll give you that.

We’ll give you data and we’ll share and we’ll do. And on its own, none of it seemed like a big deal. Right? Like we’ll allow you to schedule our showings, we’ll allow you to finance the buyers, will allow you to have this part of the transaction. We’ll let you do this. And then all of a sudden, what happened is the companies bought up all of them and then put them under one umbrella and then shared all the data behind the scenes.

Right. And then sold it back to us. And it felt really bad all along the way. It was like, Oh, that feels a little dirty. Like, Oh, I really don’t like that. It’s like, that doesn’t feel good. And then all of a sudden it all comes together, right? And then you look at the whole package and you’re like, Whoa, that is gross. What are we doing? And it just feels really bad.

So that’s where we’re kind of currently at is we gave all the stuff to like one person, now they have it and we’re like, Oh, that’s no good.

We need to do something different. We need to take back this power, this control, and we need to go like peer to peer, and we need to be the ones in charge of our own data. And like, do we get to sell our data now if you’re going to be using it, like does that have a value and there’s something there, but like, so we don’t want to trust anybody going forward kind of with all of this data. Okay.

And so now we run into this same thing like Zillow, and we’re all of our data is in these the big, huge data companies like CoreLogic. Maybe you’re starting to have too much power.

And CoreLogic goes out and they make all these different announcements and they make these moves over time and they integrate with this company, and then they do this, and then they have the property data, and then they have your personal data, they have transaction data and the title company integrates with it, and you can pull flood data and then all of a sudden you can get insurance information and like all the same stuff starts to come together and you look up and CoreLogic is essentially becoming Zillow, but from the other side, but they’re getting the information in even bigger volumes. In their trusted by larger organizations, then we are currently trusting Zillow.

So it’s like every one person is trusting Zillow, but CoreLogic they’re almost like ten times the enemy because they have larger trusted people that are sending them data. And then you see they’re like, well, we bought homes, we have LoopNet now, and they have this whole commercial MLS that they have going on. So all that’s going on over here.

And then, you know, that they they bought the residential one because this is what they want to do. So before you know it, the loan, a brokerage and they’ll start selling stuff but probably as like referrals and whatever. And all of a sudden they’ll become very Zillow ask.

And a second. Well, that feels really, really bad. So Trustless is getting back to peer to peer, taking back control and not trusting and just automatically sending. So maybe just think about that in your next real estate transaction where all the data goes and who gets it and how powerful that data is. And I bet when we start getting rid of trusting others. Right. We’ll see that the people gain the power back. And that’s what Trustless is.

Episode Links

Web 2.0, Web 1.0, Zillow, CoreLogic, MLS, Mike Acquisto , TNT 

Episode Recorded Live on YouTube 02.17.22

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