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Mark Cuban, a renowned billionaire and tech entrepreneur, has shown keen interest in revolutionizing the real estate sector using blockchain technology. This interest aligns with a recent proposal by serial entrepreneur Jason Calacanis to construct ten new cities in the United States, each featuring a million housing units. These cities aim to offer a new paradigm in urban living, focusing on sustainability and affordability.

Cuban’s proposal: Integrating blockchain into real estate

Cuban envisions integrating blockchain technology into this real estate project, particularly through the use of smart contracts and non-fungible tokens (NFTs). His idea revolves around a blockchain-based smart contract that operates on a layer-2 scaling solution, enhancing privacy and efficiency.

Explaining his concept, Cuban said the smart contract would autonomously verify construction permits using an oracle, a system that imports external data into the blockchain. Successful verification would trigger the creation of an NFT, representing a developer’s right to receive $250,000 in USDC, a stablecoin, as outlined by Cuban.

Additionally, Cuban suggests employing a multi-signature wallet for increased security and collective protection in transactional activities. While some questioned the necessity of a complex blockchain solution like a ZK-rollup for this application, Cuban emphasized the simplicity and security benefits of a multi-signature wallet for fund management. In contrast, Calacanis proposed a more traditional, trust-based method for fund transfer.

Cuban’s interest in merging cryptocurrency with real estate reflects his broader support for the practical applications of cryptocurrency, beyond just investment tools. In an interview in October 2023, he expressed concern about the common misconception of cryptocurrencies, noting their potential for creating new, user-friendly applications.

“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”, said Mark Cuban

Despite his enthusiasm for cryptocurrency, Cuban has faced challenges in his ventures into the crypto world. In September 2023, he became the victim of a cryptocurrency scam, resulting in a loss of nearly $870,000. Cuban only realized the scam after noticing the disappearance of 5 Ethereum from his wallet, valued at approximately $8,175 at the time.