Blockchain in Real Estate Market – a Chance for Revolution the Industry

Maciej Zieliński

04 Apr 2023
Blockchain in Real Estate Market – a Chance for Revolution the Industry

Introduction

In recent years, the total value of real estate was estimated to over 200 trillion dollars. In comparison, the value of every ounce of gold ever mined by the humanity across the generations is around 30 times lower. However, despite experiencing such a rapid growth, real estate market fails to introduce meaningful innovations to accommodate and capitalize on its success. Introducing blockchain in real estate market strives to break the mould and end the age of stagnation.

Benefits of Incorporating Blockchain in Real Estate Market

It appears that Blockchain is an answer to many persistent issues with the industry, without the risk of increasing the costs. Its incorporation brings a number of benefits, from which we can single out the most important:

Benefits of Incorporating Blockchain in Real Estate Market
Identical records for many stakeholders
Easily accessible information
Decentralisation and digitalisation of mortgage register
Opening the market for the less affluent
A chance to increase the liquidity of the assets
Clarity of purchase and renting processes
Reducing the risk of fraud or manipulation
The appearance of smart contracts

The Urgency of Introducing Blockchain in Real Estate Market

The appearance of platforms such as Zillow, which allows its users to store and access the real estate lists was a ground-breaking event for the market. Nevertheless, as the time passed by, people noticed the faulty nature of such solutions.

Subscribing to such a service generates additional costs, and so a lengthy period of sale might prove to be a strain for the budget. What is more, there is no standardisation of processes and communication within the services – this can prove detrimental towards the accuracy or even the relevancy of data stored within them.

Innovative Platforms for Real Estate Industry

Decentralized databases, powered by blockchain technology, could potentially address numerous challenges faced by the real estate industry. By distributing data across a peer-to-peer network, brokers can gain more control over the content they offer while minimizing third-party involvement. This would facilitate access to highly reliable information for users without straining their budget.

A prime example of this solution can be seen in Imbrex's real estate market, which operates on the Ethereum platform. Through encryption and data storage within the blockchain, servers have no authority over the real estate agents' sale announcements. Moreover, Imbrex's listings are updated in real time, making them far more efficient at delivering the latest information compared to traditional platforms.

Secure Storage of Land Registry on the Blockchain

Despite increased digitalization worldwide, it is concerning that most mortgage registries are still held in paper form. These important documents are susceptible to theft, manipulation, and physical destruction due to their fragile nature. The Haitian earthquake tragedy serves as a poignant example where disappearing registries led to massive conflicts over property ownership.

The vulnerability of paper forms is not the only issue; centralization of data storage also poses problems if no backup copies are available during unforeseen disasters. Consequently, storing mortgage registries within digital blocks of chain can significantly benefit the real estate industry. Decentralizing the database would lower potential risks associated with destruction or theft, and ensure that server downtime doesn't interfere with operations. Additionally, blockchain technology ensures that information cannot be edited, eliminating possibilities of manipulation and forgery.

Consistency in Real Estate Transactions through Blockchain

A major challenge within the current system is its oversaturation with stakeholders who often lack trust in one another. This leads to significant risks linked to inaccurate and fragmented data concerning real estate assets.

Inconsistency in documentation for parties involved contributes to scams, insecurity, and ambiguity within land management processes. Clients may need to undergo the same procedure multiple times, causing frustration and discouragement. The demand for change has been highlighted through RICS research, focusing on how primary market participants acquire and utilize information.

That is why, the standardisation of documents can be a key to success for the real estate market. The creation of decentralized database has been a longstanding goal of many companies, one of which is Propy. Its platform is based on the technology of database of blocks, which saves the data on a network of millions of nodes. Thanks to this, stakeholders have an access to identical copies of data, the consistency of which is verified in the real time by a software installed to each and every device. In such a model, trust is not a factor effecting the smooth exchange of information as the system forces its users to remain credible.

This and many other similar innovations together with IREDEC (International Real Estate Data Exchange Council) which is focused on standardising the basic set of data needed to enact the processes of real estate, gives us a bright perspective for the future.

Blockchain in Real Estate Market - Co-owning and Democratization Era

Currently one of the biggest obstacles which beginner investors face in the real estate market, is the high entry level. Crowd owning may turn out to be their dream solution. If I cannot afford the funding myself, why wouldn’t I just cooperate with others to achieve it? BitOfProperty is one of the companies which will allow the purchase and division of assets in separate units. The following process Is based on the tokenization – creation of virtual substitutes of real funds, which is perhaps the most revolutionary innovations of blockchain. A potential investor can purchase the individual tokens which are an equivalent of his desiredpart of a real estate. This opens up the market for the investors with smaller financial capacity and provides them with opportunities they didn’t have before.

  • Tokenisation in Practise

Pre-war villas in one of Warsaw’s most prominent districts – Żoliborz are reaching the transaction prices of around 2.5 million zlotys (approx. 650k dollars) which vastly exceeds the monetary capabilities of an average buyer. However, lets imagine that our seller tokenises the house. Then, lets consider that five separate buyers purchase one token whichcosts 500k zlotys (approx. 130k dollars). Such a price is much more affordable for a much larger group of investors. In this particular case, the five of our buyers are going to sign a smart contract with multiple signatures, which is going to make sure that every single decision concerning the house is carried out democratically and without the need of third-party supervision.

  • The Increase in Markets Liquidity

Thanks to the process of tokenisation, the real estate market will cease to be perceived as a “playground” for the richest. It will allow its democratisation. However, its far from being its only benefits.

The tokens could potentially become something of a cryptocurrency, which can be freely traded with the usage of designated platforms. This would reduce the widespread problem of finding a potential buyer. Instead of selling an entire property, its owner could sell a separate token, which could be an equivalent of its separate part.

The Clarity of Leasing

The process of renting is also made easier with Blockchain. It is possible to create a platformwhich gathers the information about the properties and their potential tenants in its decentralised network. It makes the process for both parties – the tenant gets all the information in one place and the landlord gains certainty about their reliability. Such a model would gain a significant advantage in a situation when one property would have many potential clients. The landlord would have an ability to compare the applications of every one of them and choose the most trustworthy and the one who would be willing to pay the most. Rantberry is one of the examples of such an application that allows the long-term rent of property in over 50 countries including Poland.

The Innovative Possibilities of the Smart Contracts

The aforementioned smart contracts allow its users to bring some visible changes to the real estate market. The incorporation of them which is based on the blockchain system will help at automatizing and simplifying even the most tedious and complex procedures.

An example of their usage could the automatized methods of lease agreement, which besidethe ability to secure the interests of both sides could potentially allow for supervision of established terms like monthly payment of rent. The process will be simplified and will be made cheaper because it wont have to involve the third party.

Conclusion

Smaller and bigger investors, the landlords, real estate agencies and even the state institutions could improve their actions thanks to the introduction of the Blockchain technology. Land and building registration held in a scattered database, identical records for many stakeholders, tokenisation of the value of the property is not just a musing on the futurebut a reality which is implemented even today.

You have to think of the blockchain as a new utility. It is a new utility network for moving value, moving assets.

William Mougayar, autor The Business Blockchain : Promise, Practice, and Application of the Next Internet Technology

Thirty years ago, the data was stored on mere floppy discs , which had to be brought to the meetings for sides to exchange the information. Indeed, the internet has allowed to revolutionise the real estate market but it is Blockchain which could potentially provide it with the burst of energy it desperately needs in the ever increasing demand for innovation.

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AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!

The Ultimate Web3 Backend Guide: Supercharge dApps with APIs

Tomasz Dybowski

04 Mar 2025
The Ultimate Web3 Backend Guide: Supercharge dApps with APIs

Introduction

Web3 backend development is essential for building scalable, efficient and decentralized applications (dApps) on EVM-compatible blockchains like Ethereum, Polygon, and Base. A robust Web3 backend enables off-chain computations, efficient data management and better security, ensuring seamless interaction between smart contracts, databases and frontend applications.

Unlike traditional Web2 applications that rely entirely on centralized servers, Web3 applications aim to minimize reliance on centralized entities. However, full decentralization isn't always possible or practical, especially when it comes to high-performance requirements, user authentication or storing large datasets. A well-structured backend in Web3 ensures that these limitations are addressed, allowing for a seamless user experience while maintaining decentralization where it matters most.

Furthermore, dApps require efficient backend solutions to handle real-time data processing, reduce latency, and provide smooth user interactions. Without a well-integrated backend, users may experience delays in transactions, inconsistencies in data retrieval, and inefficiencies in accessing decentralized services. Consequently, Web3 backend development is a crucial component in ensuring a balance between decentralization, security, and functionality.

This article explores:

  • When and why Web3 dApps need a backend
  • Why not all applications should be fully on-chain
  • Architecture examples of hybrid dApps
  • A comparison between APIs and blockchain-based logic

This post kicks off a Web3 backend development series, where we focus on the technical aspects of implementing Web3 backend solutions for decentralized applications.

Why Do Some Web3 Projects Need a Backend?

Web3 applications seek to achieve decentralization, but real-world constraints often necessitate hybrid architectures that include both on-chain and off-chain components. While decentralized smart contracts provide trustless execution, they come with significant limitations, such as high gas fees, slow transaction finality, and the inability to store large amounts of data. A backend helps address these challenges by handling logic and data management more efficiently while still ensuring that core transactions remain secure and verifiable on-chain.

Moreover, Web3 applications must consider user experience. Fully decentralized applications often struggle with slow transaction speeds, which can negatively impact usability. A hybrid backend allows for pre-processing operations off-chain while committing final results to the blockchain. This ensures that users experience fast and responsive interactions without compromising security and transparency.

While decentralization is a core principle of blockchain technology, many dApps still rely on a Web2-style backend for practical reasons:

1. Performance & Scalability in Web3 Backend Development

  • Smart contracts are expensive to execute and require gas fees for every interaction.
  • Offloading non-essential computations to a backend reduces costs and improves performance.
  • Caching and load balancing mechanisms in traditional backends ensure smooth dApp performance and improve response times for dApp users.
  • Event-driven architectures using tools like Redis or Kafka can help manage asynchronous data processing efficiently.

2. Web3 APIs for Data Storage and Off-Chain Access

  • Storing large amounts of data on-chain is impractical due to high costs.
  • APIs allow dApps to store & fetch off-chain data (e.g. user profiles, transaction history).
  • Decentralized storage solutions like IPFS, Arweave and Filecoin can be used for storing immutable data (e.g. NFT metadata), but a Web2 backend helps with indexing and querying structured data efficiently.

3. Advanced Logic & Data Aggregation in Web3 Backend

  • Some dApps need complex business logic that is inefficient or impossible to implement in a smart contract.
  • Backend APIs allow for data aggregation from multiple sources, including oracles (e.g. Chainlink) and off-chain databases.
  • Middleware solutions like The Graph help in indexing blockchain data efficiently, reducing the need for on-chain computation.

4. User Authentication & Role Management in Web3 dApps

  • Many applications require user logins, permissions or KYC compliance.
  • Blockchain does not natively support session-based authentication, requiring a backend for handling this logic.
  • Tools like Firebase Auth, Auth0 or Web3Auth can be used to integrate seamless authentication for Web3 applications.

5. Cost Optimization with Web3 APIs

  • Every change in a smart contract requires a new audit, costing tens of thousands of dollars.
  • By handling logic off-chain where possible, projects can minimize expensive redeployments.
  • Using layer 2 solutions like Optimism, Arbitrum and zkSync can significantly reduce gas costs.

Web3 Backend Development: Tools and Technologies

A modern Web3 backend integrates multiple tools to handle smart contract interactions, data storage, and security. Understanding these tools is crucial to developing a scalable and efficient backend for dApps. Without the right stack, developers may face inefficiencies, security risks, and scaling challenges that limit the adoption of their Web3 applications.

Unlike traditional backend development, Web3 requires additional considerations, such as decentralized authentication, smart contract integration, and secure data management across both on-chain and off-chain environments.

Here’s an overview of the essential Web3 backend tech stack:

1. API Development for Web3 Backend Services

  • Node.js is the go-to backend runtime good for Web3 applications due to its asynchronous event-driven architecture.
  • NestJS is a framework built on top of Node.js, providing modular architecture and TypeScript support for structured backend development.

2. Smart Contract Interaction Libraries for Web3 Backend

  • Ethers.js and Web3.js are TypeScript/JavaScript libraries used for interacting with Ethereum-compatible blockchains.

3. Database Solutions for Web3 Backend

  • PostgreSQL: Structured database used for storing off-chain transactional data.
  • MongoDB: NoSQL database for flexible schema data storage.
  • Firebase: A set of tools used, among other things, for user authentication.
  • The Graph: Decentralized indexing protocol used to query blockchain data efficiently.

4. Cloud Services and Hosting for Web3 APIs

When It Doesn't Make Sense to Go Fully On-Chain

Decentralization is valuable, but it comes at a cost. Fully on-chain applications suffer from performance limitations, high costs and slow execution speeds. For many use cases, a hybrid Web3 architecture that utilizes a mix of blockchain-based and off-chain components provides a more scalable and cost-effective solution.

In some cases, forcing full decentralization is unnecessary and inefficient. A hybrid Web3 architecture balances decentralization and practicality by allowing non-essential logic and data storage to be handled off-chain while maintaining trustless and verifiable interactions on-chain.

The key challenge when designing a hybrid Web3 backend is ensuring that off-chain computations remain auditable and transparent. This can be achieved through cryptographic proofs, hash commitments and off-chain data attestations that anchor trust into the blockchain while improving efficiency.

For example, Optimistic Rollups and ZK-Rollups allow computations to happen off-chain while only submitting finalized data to Ethereum, reducing fees and increasing throughput. Similarly, state channels enable fast, low-cost transactions that only require occasional settlement on-chain.

A well-balanced Web3 backend architecture ensures that critical dApp functionalities remain decentralized while offloading resource-intensive tasks to off-chain systems. This makes applications cheaper, faster and more user-friendly while still adhering to blockchain's principles of transparency and security.

Example: NFT-based Game with Off-Chain Logic

Imagine a Web3 game where users buy, trade and battle NFT-based characters. While asset ownership should be on-chain, other elements like:

  • Game logic (e.g., matchmaking, leaderboard calculations)
  • User profiles & stats
  • Off-chain notifications

can be handled off-chain to improve speed and cost-effectiveness.

Architecture Diagram

Below is an example diagram showing how a hybrid Web3 application splits responsibilities between backend and blockchain components.

Hybrid Web3 Architecture

Comparing Web3 Backend APIs vs. Blockchain-Based Logic

FeatureWeb3 Backend (API)Blockchain (Smart Contracts)
Change ManagementCan be updated easilyEvery change requires a new contract deployment
CostTraditional hosting feesHigh gas fees + costly audits
Data StorageCan store large datasetsLimited and expensive storage
SecuritySecure but relies on centralized infrastructureFully decentralized & trustless
PerformanceFast response timesLimited by blockchain throughput

Reducing Web3 Costs with AI Smart Contract Audit

One of the biggest pain points in Web3 development is the cost of smart contract audits. Each change to the contract code requires a new audit, often costing tens of thousands of dollars.

To address this issue, Nextrope is developing an AI-powered smart contract auditing tool, which:

  • Reduces audit costs by automating code analysis.
  • Speeds up development cycles by catching vulnerabilities early.
  • Improves security by providing quick feedback.

This AI-powered solution will be a game-changer for the industry, making smart contract development more cost-effective and accessible.

Conclusion

Web3 backend development plays a crucial role in scalable and efficient dApps. While full decentralization is ideal in some cases, many projects benefit from a hybrid architecture, where off-chain components optimize performance, reduce costs and improve user experience.

In future posts in this Web3 backend series, we’ll explore specific implementation details, including:

  • How to design a Web3 API for dApps
  • Best practices for integrating backend services
  • Security challenges and solutions

Stay tuned for the next article in this series!