 Hey guys, it's MJ the students actually and in this video I want to talk about my crazy idea Which is how you can buy property over the blockchain with no need for a bank loan So how does this work? Let's pretend we have two people We've got the blue person and we've got the green person Blue person has got a house and the green person wants to buy this house So what happens is there'll normally be some sort of database and it will say, you know, which house is It's controlled by which person, you know, your title deeds or something like that Now in order to to buy this house this person needs to exchange money. So they would normally go to the bank Go to the bank and the bank will be like look, I've got a lot of money I will give you this money over here if you sign a lot of contracts and details and Then what you do is you then give your money to this person here they then give you this money over there and When it comes to to the database it gets swapped out with BAM new person comes in and It's not the end of the story because you now have to make these little payments to the bank You need to pay interest so you need to pay little chunks of money to the bank And it's normally a quite a high interest rates And if you stop making these payments then the house takes over the bank So as you can see in this story over here, the bank has a lot of power Now I was thinking is there a way that we can just get rid of the bank? Let's see if we can just get rid of the bank and this massive amount here It's this but no one really has lying around enough money to just buy a property They normally have to go to some sort of bank. So what if we just get rid of that big amount as well? once if we take the house and We create house coins or property coins Regarding this house here. So what this house does is we put it on a blockchain So there'll be a whole bunch of these coins. There'll be millions of these little coins and then instead of this person Buying the well taking a loan from the bank and then giving that massive amount of money And they're paying small streams of money to the bank Why don't they do it like this where this person now gives a little bit of money and they get one of the little tokens here And they can keep doing this next month They do this when they get their next salary and they pay it over like that Then they get their next salary they pay it and the person gets the money back Okay, one coin just just got created. I don't know where they But this is the whole idea is that Sorry, the whole idea is that you slowly sell your property At a fraction because this has been one of the biggest weaknesses with property is that it's this massive large Chunk that can't be sold in and you know by cutting up and splitting it up And they've done this with commercial property in the forms of real estate trusts and On various stock exchanges they can buy a whole bunch of property dice it up and sell shares into it But the individual person can't access this cool financial innovation But with blockchain they can and what is cool about this is that you can sell pieces of your house You know at a time and then so what the blockchain will have is they will say, you know who owns which coin So let's say this person then buys it. Oh, I've just changed the whole color my apologies Let's see if this works here. Okay. Nice. It's all faces going green But you get the idea is that this would be the blockchain here It would say who owns each coin and then how it can it can work is let's say Depending on who's actually living in the house that person then depending on the amount of coins they have Pay, you know the remaining rent So they'll be so it'll be a little bit of a complicated cash flow because they'll be paying, you know capital cash flows One way and in this other way who's ever living in the house will also pay rental. So There'll be two cash flows moving It'll be for the capital of the house and then they'll be for the rental So this person can actually slowly sell their house So how that would work is if they slowly sold their house. This is scenario one is they keep Sorry They keep all the tokens and they slowly sell one for one in this scenario here They would then pay a little bit of rent to this person here So they would actually be another payment a monthly payment that they're then paying here for rent When they sell the second one and they get the second chunk then they will be paying two pots of the rent and then once they sold the third one They can then be set me paying three chunks of rent But it could also work the other way around where as let's say you want to sell the house And you want to get out of it because you want to go to a different country Then in this situation the house moves to this person here And not only do they pay you the capital for the actual house token But then they also start paying you the little rental amounts on top of that as well and depending on How many tokens they have so here it will just be actually here. They'll pay two Why is this thing not working? This is a terrible software that so now they're paying two at a time But as soon as they purchase the next house coin Then they rent decreases back down to just one And so you can see it will be a little bit complicated because there's capital payments and there's rental payments But the whole beauty of putting it on a blockchain and having this Integrated with the title deeds is that there's no more need for the big banks because there's a bit banks Just keep getting bigger and bigger and bigger and all they are doing is providing a financial service of taking a Big amount of money and dicing up into small chunks, which you can very easily do over the blockchain So anyway, that is my crazy idea. I hope I explained it well enough If you've got any questions, let me know in the comment section below If you've got any crazy ideas of your own on what to use with the blockchain specifically around financial instruments I'd love to hear them and like always thanks so much for watching and I'll see you guys for my next video. Cheers