Cryptocurrency and Blockchain Technology
‘Entrepreneurs build things. We come up with ideas, create products, and make things work.’ -Matthew Herrick Click To Tweet
Cryptocurrency is going to change the way we do banking. If we don’t keep up with this technology, it will take off without us. Matthew Herrick is the co-founder and CEO of Ledger Leap an enterprise blockchain solution. This is an exciting episode where Matthew clears up misconceptions about what bitcoin, blockchain, ICOs, and ethereum actually are.
He talks about smart contracts and how he and his partner used the blockchain platform to create a real estate platform that gets buyers reduced commissions of 1%. This platform also simplifies and speeds up the real estate process and saves brokers time, money, and acquisition costs. He then used his existing infrastructure to launch a business to help others use blockchain technology to create token based businesses.
You can find Scott here:‘Ethereum is fantastic. It allows anyone with a computer who sees a problem to build a solution.’ -Matthew Herrick Click To Tweet
- [01:36] Ledger Leap came about by accident after Matthew and his co-founder created a real estate platform powered by blockchain.
- [02:08] They created the largest real estate brokerage referral network. They had to build all of the tools to make things work.
- [02:45] After creating the real estate product, they had the team in place to create more products.
- [03:53] OpenTable saw his work and wanted some advice. His team was in place, so they just built the platform. This led to the business of Ledger Leap.
- [04:28] Blockchain is a technology that solves problems. It was secretly created by Satoshi Nakamoto. It was released upon the world in the form of bitcoin.
- [05:27] Bitcoin allowed people to transfer currency all over the world with no central control and almost no fees.
- [05:47] The cost was just the amount of power to do the computer transaction.
- [05:51] Bitcoin threw the world for a loop. Once bitcoin gained notoriety, people discovered that blockchain can make other things work.
- [06:07] This thing that makes bitcoin work can be used for other things. Then we saw the evolution of the smart contract which is Ethereum. Ethereum is not a cryptocurrency.
- [06:12] Etherium is a program for building platforms on blockchain.
- [06:21] The coin ethereum is used as gas to push the smart contracts built by ethereum out of the nest.
- [06:39] There are also equities that have been turned into digital currencies.
- [07:22] How blockchain is used for Matthew’s real estate platform. They tokenize real estate commissions.
- [08:16] Consumers have pushed back against 6% real estate fees. Each percentage point is broken up into 10 tokens. Brokers need to make some money so they set a stop at 10%.
- [09:42] Sellers can pay 1% instead of 10%. People didn’t think brokers would get on board, but they did because client acquisition is hard.
- [10:05] Each broker within a 50 mile radius is in charge of the coin holders in that area.
- [10:29] The real estate platform is called Deed Coin and it works similar to Trello. Administrative backed work can be done on the platform. This speeds up the process with all of the different vendors required.
- [12:25] Redfin doubled in 6 months because they brought commissions down to 4%.
- [13:29] An ICO is an initial coin offering. Which is similar to an initial public offering or IPO. This makes people think that it is an investment.
- [15:01] You shouldn’t get to ask for money unless you have a project, build a thing, and have a platform.
- [15:19] At Ledger Leap they only look at token sales. If it doesn’t exist, stay the heck away from it.
- [15:49] Ledger fund helps you build and takes a percentage of the token fund. But it has to be a business that has been running for at least a year.
- [16:46] The product or platform has to at least have users or a very convincing pitch.
- [17:06] At Ledger Leap we get to be the change that we want to see.
- [17:35] Bitcoin is a great hedge against regular currency. It’s a digital value that can’t be taken away.
- [20:04] If you can feel it, hold it, or touch it then it doesn’t need to be on blockchain.
- [22:16] If you don’t understand how a token operates, don’t invest in it.
- [22:40] If you don’t understand how the technology works, stay away from ICO’s and invest in existing technologies like bitcoin.
- [23:22] Blockchain is excellent for shipping companies and supply chain and logistics. There would be no such thing as accounting errors with blockchain. It’s perfect for storing information like titles and deeds.
- [24:45] Blockchain is the best bookkeeper in the world.
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