Part 1: The Unexpected Leap
In 2017, Gregory’s job required him to move to a new city. Searching for a new apartment was tedious, and he longed for a more efficient way of finding the perfect place.
One evening, while exploring a new augmented reality app on his phone, Gregory stumbled upon a strange glitch, and he was teleported to the year 2030. The world around him had changed drastically. The once-familiar streets were now bustling with autonomous vehicles, AI-powered personal assistants, and people wearing AR glasses.
Part 2: A Brave New World
Gregory quickly realized he had to adapt to the new world if he wanted to find a place to live. He discovered Web 3.0 and the Semantic Web had transformed the internet from a simple keyword-based search engine to a personal AI assistant that could understand the context and perform intelligent browsing.
He acquired a pair of AR glasses with bitcoins, which had become the primary interface for technology. Through these glasses, he was introduced to the Metaverse and the Spatial Web. Now, instead of physically visiting properties, he could explore them through Digital Twins and collaborate with others in real-time.
Part 3: A New Way to Find a Home
Gregory’s AI personal assistant, Ada, was part of a Decentralized Autonomous Organization (DAO) for Digital Twins Ecosystem that operated on blockchain technology. The DAO managed the entire property ecosystem, from virtual tours to smart contracts and cryptocurrency transactions.
Ada introduced Gregory to the Hyperspace Transaction Protocol (HTP), which made it possible to create immersive, interactive property experiences within the Metaverse. Gregory was amazed at how easy it was to explore apartments in a virtual environment, even testing how the sun would shine through the windows at different times of the day.
Part 4: The Perfect Apartment
With Ada’s assistance, Gregory narrowed his search to a handful of properties through the Spatial Web and Metaverse.
When Gregory finally found the perfect apartment, he completed the rental agreement using a smart contract on the blockchain, transferring cryptocurrency as payment. The entire process, from property discovery to signing the contract, was seamless and efficient.
Part 5: Back to Reality
Gregory returned to his own time with a newfound appreciation for technology and its potential. He knew that one day, the advancements he had experienced in 2030 would become a reality, and he was determined to be a part of making it happen.
1. Introduction
About 3DAPARTMENT.com
2. The limitations of traditional online real estate search
- Weaknesses of Web 2.0
- Opportunities for Expansion into Web 3.0
3. What is the Semantic Web?
- What is Semantic Markup?
- Spatial Web vs. Metaverse
- How could it affect property search?
4. The Future of Property Search and Beyond
- Transition to AI-Driven Search
- 3D visualization
- Collaboration and Remote Work
- Personalization and Customization
- IoT and Smart City Applications
- Real-time Data Integration
5. Blockchain
- Implications for the Real Estate Industry
- DAO for Digital Twins Ecosystem
6. Conclusion
1. Introduction
Throughout history, human perception has been reliably consistent. One person walking into a museum will see essentially the same as another person. It is what enables an entire industry of managed experiences, from Disney’s Magic Kingdom to a trip to the dentist. This has been enabled by a relatively stable physical environment.
Though we live in a three-dimensional world, the online landscape has until recently remained stubbornly two-dimensional. Now the lines separating the digital and physical are fading, transforming the once static into an interactive and enchanting experience. Within the next two to five years, our surroundings will be illuminated with layers of rich, captivating, and meaningful data that can be both seen and engaged.
The increasing digitization of our lives means virtually all information can be spatially represented and made more intelligent through the use of artificial intelligence. Think about all the ways that our relationship with the digital world has changed, from secure storage, enhancement and monetization of personal data, voice-activated interfaces like Siri and Alexa, facial recognition capabilities in smartphone cameras, and the emergence of gesture-sensing technology. The effects are trickling into many industries, included traditionally staid ones like real estate.
This report explores the limitations of the traditional real estate transaction model, emerging Web 3.0 and Spatial Web technology, the implications for fundamentally dismantling and reassembling the real estate and property search industries.
2. The limitations of traditional online real estate search
Weaknesses of Web 2.0
The traditional online real estate search process will be familiar to anyone who has rented or bought a home in the last three decades. According to a 2019 report by the National Association of Realtors, 44% of recent buyers started the buying process by looking online. Many prospective homebuyers will type “homes for sale” into a search engine along with their city, neighborhood, or zip code, and watch their screen quickly populate with hits from the same aggregator marketplaces that monopolize the industry.
Few buyers or brokers these days are aware that the Multiple Listing Service (MLS) was originally launched in the 1960’s as a physical book sent to participating brokerages. It wasn’t until the mid-90’s that real estate listings began appearing online. Realtor.com was founded in 1995, and became open to the public in 1996. Redfin wasn’t founded until 2002, followed by Zillow in 2004, and Trulia in 2005. However, none of these well-known aggregator websites have complete access to the official MLS.
In the last 20 years since, there have been relatively few leaps in the industry, which is constrained by the platform where they exist: Web 2.0.
Anybody who has tried to find an apartment within walking distance of a laundromat on Zillow has butted up against the limitation of keyword-based search. Keyword-based searches often yield irrelevant or low-quality results, as they focus on matching keywords rather than understanding the context or intent of the query. Users often need to try multiple keyword combinations to find desired results, making the search process time-consuming and frustrating. Despite some development in personalization, search algorithms are also still relatively clueless about individual user preferences.
The process of online searches itself limits interactivity with users to a two-dimensional screen, accessed by scrolling through a linear plane through the extension of a mouse, keyboard, or touchscreen. It also relies on static content and lacks real-time collaboration or dynamic content updates.
To get a full scope of properties available, customers must engage an agent who can give them MLS access, which does not offer advanced search filters or personalized recommendations. The industry is also limited in advancement by the monopoly-hold of a few household names, reducing competition and innovation. The National Association of Realtors has in recent years faced antitrust scrutiny when it successfully banned “pocket listings” of houses on a website that is not also included in the MLS.
Combined, these weaknesses pose significant threat to the existing real estate search model. Advanced search engines using AI and machine learning may soon outperform traditional keyword-based search engines in terms of relevance and user satisfaction. As users become more familiar with advanced search technologies, their expectations for accurate and personalized search results may also increase, making it difficult for keyword-based search engines to compete.
Weaknesses:
- Limited accuracy
- Inefficient search experience
- Lack of personalization
- Limited interactivity
- Static content
- Limited customization
- Monopoly risks
Opportunities for Expansion into Web 3.0
The threats posed by artificial intelligence to the current ecosystem provides a unique opportunity for innovators. A 2019 report by Altus Group found that commercial real estate firms are increasingly using software for everything from benchmarking to scenario analysis. Many of the decision-makers interviewed were positive on exploring the use of artificial intelligence and machine learning, blockchain, and virtual or augmented reality.
The possibilities for incorporating Web 3.0 are only beginning to be realized. AI-powered search algorithms can learn from user behavior and preferences, enhancing the search experience and offering more personalized and relevant results. Incorporating semantic search technologies can improve search accuracy by understanding user intent and the relationships between terms.
Incorporating virtual property tours and interactive 3D models can improve user engagement and decision-making. Other aspects of Web 3.0 can enable more interactive, immersive experiences with real-time updates and collaboration. Cross-platform solutions that work seamlessly across devices can further improve accessibility and user satisfaction.
Opportunities:
- Implement AI-powered search
- Integrate 3D and VR technology for property tours and modeling
- Transition to Web 3.0
- Incorporate AR and VR
- Develop cross-platform solutions
- Implement semantic search
- Improve query interpretation
3. What is the Semantic Web?
What is Semantic Markup?
Semantic markup is a way of labeling data so that it is machine-readable, allows artificial intelligence to produce highly accurate search results and even perform automated searches. Specifically, it is the practice of using specific HTML tags and structured data formats (such as RDF, Microdata, or JSON-LD) to provide additional context and meaning to the content on a web page, allowing search engines, web crawlers, and other applications to understand the relationships between different pieces of information and make more accurate inferences about the content. Ubiquitous use of semantic markup allows search engines and other applications to understand the meaning of the content and make smarter decisions about what information to present.
Context-aware search features are nothing new. Google has been working for years on developing semantic search—which understands the user’s intent, not just the keywords to give more relevant results. However, semantic markup opens up development to the full processing power of artificial intelligence.
Semantic markup is a crucial component of the Semantic Web, which is both a vision for, and the natural evolution of, the World Wide Web, where web content and data is structured to be more meaningful to machines. It relies on the use of standardized formats, vocabularies, and protocols to describe the relationships between different data points, enabling machines to perform tasks that were previously reserved for humans, such as data integration, reasoning, and decision-making.
Spatial Web vs. Metaverse
Spatial Web and the Metaverse are related concepts that represent the next generation of the internet, focusing on immersive and interactive 3D experiences. Though they share similarities, there are key differences.
Spatial Web
The Spatial Web, sometimes referred to as Web 3.0 or the 3D internet, is a vision for an internet that incorporates spatial information and 3D data into the digital world. It represents a shift from traditional 2D web interfaces to a more immersive and interactive environment where users can engage with digital content in three dimensions.
Spatial Web leverages technologies like augmented reality (AR), virtual reality (VR), geolocation, and semantic tagging to create a seamless connection between the digital and physical worlds. In this context, digital objects and information are anchored to specific locations in the physical world, allowing users to access and interact with them based on their spatial context.
Metaverse
The Metaverse, on the other hand, is a collective virtual shared space. It is a persistent, interconnected digital universe where users can interact with each other and digital objects through avatars using immersive technologies such as VR and AR. The Metaverse comprises multiple virtual environments and platforms where users can socialize, work, learn, create, and even participate in various economic activities. It represents a convergence of the physical, digital, and virtual worlds, while creating an entirely new domain for human interaction and experiences.
Intersection of Technologies
The two technologies are inseparably connected. Spatial Web serves as the infrastructure that enables the creation and functioning of the Metaverse. Both are driving the transition to AR glasses as the main interface for technology. Digital twins can be used to represent real-world assets in virtual spaces, allowing users to explore and interact with them in ways that were not possible in traditional 2D web interfaces.
The expansion of Spatial Web is already driving the adoption of new protocols and standards, including hyperspace transaction protocol which outstrips the current HTTP standard. It further allows features like hyperporting and routing of 3D content. Though the technology powering the transition is in privately-owned domain, it is not hard to see the shift of Spatial Web to a public utility much like the Internet is today.
How could it affect property search?
Semantic markup will affect all areas of information retrieval, but none more than real estate. That’s because real estate buying process inherently bridges the physical and digital worlds. Every home listing is tied to a three-dimensional physical world location that needs to be mapped, categorized, and formatted into a searchable format. Semantic markup supports that bridge by putting data points in context for machines to search for, identify, and categorize physical attributes.
4. The Future of Property Search and Beyond
The development between Web 1.0 to now Web 3.0 has profound implications for the way people search and buy property online. While Web 1.0 data writing was mostly read-only, Web 2.0 allowed reading and writing. Now Web 3.0 will make data both portable and personal.
Transition to AI Assistant-Driven Search
In the imagined Web 3.0 future, a person’s personal AI would serve as an intermediary, accessing public or privately-authorized data via the blockchain. This information would then be channeled back to the person through an interface layer of VR headsets, wearables, smart environments with IoT-connected appliances, or even home robots.
This evolution is already not far-fetched. A 2022 report commission by IBM found that 35% of companies were already using AI in their business with another 42% exploring its use. It is estimated that by 2025, most online searches will be performed using AI-powered assistants instead of conventional keyword-based search engines. Intelligent search is already infiltrating the $167 billion search industry, with the two biggest players, Google and Microsoft Bing, announcing the use of artificial intelligence to their search offerings. Another possibility of evolution is that traditional search engines adapt to data providers for AI assistants rather than serving as the main search interface for users.
3D Visualization
Leaders in digital twin technology like Matterport are showing how the integration of 3D media and digital twins allows users to engage with digital content on a much deeper level, leading to richer, more engaging experiences like virtual property tours, interactive product demonstrations, and immersive educational content. Combining digital twins with augmented reality (AR) and virtual reality (VR) technologies, users can virtually visit properties, explore different design options, or visualize the impact of proposed changes in the context of the real world.
Collaboration and remote work
Web 3.0 technology will enable more effective collaboration and remote work, as users can interact with digital representations of objects and spaces together in real-time. This can facilitate better communication, decision-making, and problem-solving in real estate, and all the way up the vertical chain in construction, design, and manufacturing. Digital twins also enable real-time data integration and updates between the physical and digital worlds, making it easier to monitor and manage assets remotely.
Personalization and customization
Digital twin technology offers options for personalization and customization that is simply not feasible on a purely physical world. In the manufacturing industry, digital twin technology has enabled the creation of a “an experimental assembly system based on a belt conveyor system and an automatized line for quality production check,” which suggests a direction of evolution in Industry 4.0. Ease of customizability will likely lead to more satisfying user experiences across various industries and applications. In property search, we are seeing this technology used most often in virtual staging applications.
IoT and Smart City Applications
In spite of a temporary trend reversal in some cities during the COVID-19 pandemic, the world’s urban centers are growing increasingly dense, necessitating the need for designing and implementing smarter city infrastructure. Digital twins play a critical role in IoT and smart city applications by providing a digital representation of connected devices, infrastructure, and urban environments that enables efficient monitoring, management, and optimization of resources and systems.
5. Blockchain
Adjacent to Spatial Web is Blockchain, which is moving technology irreversibly towards decentralization and has implications far beyond Bitcoin or cryptocurrency.
Decentralized Ownership
Blockchain technology enables decentralized ownership and management of digital assets, including digital twins. This means that property owners can have full control over their digital twins without relying on a centralized authority, which leads to increased trust and transparency in property data management, as well as reduced risks of data tampering or unauthorized access.
Tokenization of assets
Blockchain also enables the tokenization of real estate assets, converting them into digital tokens that represent ownership rights. By tokenizing digital twins, property owners can safely and transparently transfer or sell their ownership. This can also facilitate fractional ownership, allowing multiple investors to own a portion of the digital twin and, by extension, the physical property.
Data privacy and security
Blockchain’s decentralized nature ensures that digital twin data is stored across multiple nodes in a distributed network, making it more resilient to attacks and data breaches. Additionally, cryptographic techniques can be employed to protect sensitive information and ensure that only authorized users can access and modify the digital twin data.
Interoperability and data standardization
Blockchain technology can facilitate the standardization of digital twin data, ensuring that different platforms and systems can interact and share information seamlessly. This will lead to better integration of digital twins with other applications and services, such as property management tools, IoT devices, and smart city infrastructure.
Digital Twins Ecosystem
Perhaps one of the most intriguing possibilities for blockchain technology in the real estate industry is with Decentralized Autonomous Organizations (DAO). DAOs have been called a type of “crypto co-op” where members coalesce as a decentralized entity around a common cause, mission, or enterprise.
A fully-realized DAO for a digital twins ecosystem in real estate would be a self-governing, decentralized platform that promotes collaboration, innovation, and transparency among its participants. It would leverage open standards, privacy-preserving technologies, smart contracts, and token-based incentives to create a robust and efficient system for managing properties and driving value in the real estate sector.
- Decentralized Governance – The DAO would be governed by its members, who could include property owners, developers, architects, engineers, facility managers, and other stakeholders. Decisions would be made through consensus or voting mechanisms based on token holdings, ensuring a democratic and transparent decision-making process.
- Token-based Economy – The DAO would have a native token that could be used for various purposes within the ecosystem, such as incentivizing participation, voting on proposals, or facilitating transactions related to digital twin services.
- Open and Interoperable Standards – The DAO would adopt open standards and protocols for creating, sharing, and maintaining digital twins, ensuring that all participants can easily interact with the ecosystem and contribute their expertise and resources.
- Data Privacy and Security – The digital twin ecosystem would implement privacy-preserving technologies, such as zero-knowledge proofs and encryption, to ensure that sensitive data is protected while still enabling collaboration and data sharing among participants.
- Smart Contracts for Automation – The DAO would utilize smart contracts to automate various aspects of the digital twin lifecycle, such as property registration, facility management, maintenance scheduling, and even leasing or selling properties.
- Incentives for Innovation and Collaboration – The DAO would have mechanisms in place to reward participants who contribute valuable innovations, improvements, or resources to the ecosystem. This could include financial rewards, reputation scores, or other forms of recognition.
- Integration with Real-World Systems – The digital twin ecosystem would be connected to real-world systems, such as IoT devices and sensors, to capture real-time data on property conditions, energy consumption, and other relevant metrics.
- Scalable and Modular Architecture – The DAO would have a scalable and modular architecture, allowing it to accommodate the diverse needs of various real estate use cases, such as residential, commercial, and industrial properties.
- Continuous improvement and learning – The DAO would have a mechanism for learning from its experiences and incorporating feedback from its participants to continuously improve and evolve the digital twin ecosystem.
Conclusion
The fictional future of Gregory’s property search journey in 2030 is hardly a pipe dream. In fact, many of those features already exist in various degrees of advancement. The semantic web is taking us beyond the traditional search engine. The process of online property search will become increasingly interactive and immersive, blurring the lines between the physical and digital universe.
As the world moves towards blockchain and decentralization, there will be tectonic shifts in property management transference. The world will likely see more digital twin ecosystems run by Decentralized Autonomous Organizations (DAOs). From PropTech 3.0 to Industry 4.0, the effects of Web 3 are rippling across industries including and surrounding property ownership. Real estate companies need to be prepared for the ground shift already happening under them.
