This Will Change Real Estate Forever! Blockchain & Real Estate: Tokenization Explained (ft. Tom Truong, Billy Beach & Matt Nicosia, T7X)

The way we buy, sell, and own real estate is about to be completely transformed.

In this episode of Real Talk Hilton Head, David Cross sits down with:

• Tom Truong – Global Icon with eXp Realty & Co-Founder of Trusted Smart Chain
• Billy Beach – U.S. Air Force Veteran, Investor & Co-Founder of Trusted Smart Chain
• Matt Nicosia – Founder of T7X, pioneering tokenized real-world assets

Together, they break down how crypto, blockchain, and tokenization will disrupt everything we know about real estate transactions, ownership, and investing.

✅ What tokenization really means for homeowners & investors
 ✅ How smart contracts will eliminate delays & intermediaries
 ✅ Why blockchain = speed, security, and transparency in real estate
 ✅ How T7X and Trusted Smart Chain are building the rails for the future

⚠️ If your Realtor isn’t talking about blockchain, they’re already behind. This is the future — and only those who understand it will thrive.

🎙️ Don’t miss this exclusive conversation — watch now to get ahead of the curve.

🔗 Watch more episodes & subscribe: (13) Real Talk Hilton Head Podcast - YouTube

www.RealTalkHHI.com

#Blockchain #RealEstate #Tokenization #Crypto #T7X #TrustedSmartChain #RealTalkHiltonHead

Transcript

Welcome to Real Talk Hilton Head with David and Dale Cross, the real estate lifestyle podcast of Coastal Carolina.

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Join us as we share stories from our community, insight into the local lifestyle, and the real scoop on real

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estate. From market trends to home design, we dive deep into what it means to live and

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thrive here. Discover the state of mind and philosophy of the Low Country that enriches life through personal growth,

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health, and wellness, and human connection. Whether you're a local or thinking of becoming one, we're here to

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guide you through the ins and outs of living this coastal escape. Tune in, relax, and enjoy the

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conversation with Real Talk Hilton Head, the podcast of Coastal Carolina. This

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episode is brought to you by the David Dale team powered by EXP Realy in Hilton

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Head. Well, hey everybody. Thank you for joining in in today. Whoever is in on this call, whoever is not in down the

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road, you're going to um um one second, you're going to uh see this on the

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podcast, but my name is David Cross. I'm a team lead with the David Dale team powered by EXP Realy in Hilton Head,

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South Carolina. I'm also the co-host of a local podcast called Real Talk Hilton Head. It's the Real Estate Lifestyle

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Podcast of Coastal Carolina. And a lot of you may be wondering, what in the

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world does blockchain, crypto, all that have to do with real estate? Well, you're about to find out today because

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it is going to be at the forefront of how real estate's going to be done in the future. And we have some amazing

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guests today. I'm going to read a little bit um about it. So, basically, we're stepping into the future of real estate,

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blockchain, crypto, tokenization, and they're already transforming how we buy,

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sell, and invest in property. And today I have three pioneers who are leading this revolution. First we have Tom

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Trung. He's a global icon with EXP Realy and he is truly a global icon. Uh he's a

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former president of a ARAA, a founding voice in the trusted smart chain

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movement. He's a visionary pushing the real estate world into the web 3 era. We also have Matt Nikosia, the founder of

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T7X. It's a cutting edge platform revolutionizing private market investing

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through tokenized real world assets. It's a key term we're going to want to remember there. He's a serial

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entrepreneur with decades of leadership in finance and tech and blockchain innovation. He's also a key player in

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the trusted smart chain ecosystem. And rounding it out is Billy Beachch. He's the co-founder of Trusted Smart Chain, a

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US Air Force veteran and a longtime investor and educator in the crypto space. He's making the complex world of

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blockchain simple, secure, and accessible. These aren't just experts. They're building the rails of what's

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next. So, we are going to dive in right now. Gentlemen, thank you for joining us

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today. Thank you. Good to see everybody. Thank you guys for your time.

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Absolutely. So, you know, we're gonna we're gonna just get started. And to everybody out there, you know, I want

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you to remember the days when listings used to be printed and then we went to Zillow. Back in the day, you used to

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handw write letters and then it went to email. You used to uh literally have to

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um you know go rent a cassette, a a video cassette tape and now you stream

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everything. What what that world was is what is happening now in finance. We are

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moving in this direction. what the internet did for those it's doing to the financial system and um so and

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especially home your home your equity your investments blockchain's going to touch them all and this isn't just about

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Bitcoin speculation we're going to get beyond that this isn't we're not this isn't the Bitcoin meeting okay it's

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about homes how they're going to be bought sold owned financed and passed down so with that being started Tom I'm

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going to start with you for someone who's never used crypto or doesn't even understand what blockchain

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is how would you explain it in the most simplest of terms?

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In the simplest of terms, one can

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um so we we use the word tokenization of real world assets a lot. we will be on

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on this call. And what that means is you that real estate professionals, real

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estate buyers and sellers can now sell a fraction of their real estate or

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purchase a fraction of someone else's real estate. Um like never before. um

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that they don't have to in in the old good old days where you um bought bought

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a property, you basically went out if you want to invest in a property, you bought it on your own. The only other way to do it is to do syndications.

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Okay? And for syndication deals, most of the world needs to be an accredited

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investor. And with what we're doing, what what tokenization of real world asset is doing is breaking it down in

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very small fractional ownership where the average consumer from all over the world can participate. Okay, Matt and

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Billy, why don't you guys give your your your simple definition of the question here? Yeah, I I think um you know in in

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basics um tokenization is freedom and and the lack of uh total control by a

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third party or intermediary, right? And it's and it's access uh to potential instant liquidity. I think the biggest,

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you know, the biggest draw for me into this space four years ago was the idea that number one, there was no barrier of

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entry. Okay, like Tom was talking about most real estate projects 2550 $100,000

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barrier entry fees, right? To keep a lot of people from uh from participation with tokenization.

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I mean you could have uh single tokens that are fractionalized down to eight decimals, right? So someone in India

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could participate in a in the crowdfunding for a development project here in the US and they could buy $5 in

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token, they could buy $2 in token, right? And if that smart contract, and we'll get into that,

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is set up for a distribution model, it doesn't matter if one investor does a million dollars and gets a 10%

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distribution off of that contribution, or like I said, someone in India does $2, they get the same fractional

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distribution. Now, obviously, you know, that distribution is going to look different from a financial perspective,

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but it leveled the playing field, right? The little guy has the same exact opportunity to invest in that

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fractionalized asset as the large guy does, right? So barrier of entry elimination is massive, right? For

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number one, crowdfunding, right? Or adoption or um access to capital. Um but also participation. Here's the second

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biggest piece is a liquid market. Okay, so let's say Tom does a new development.

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Okay, Tom's beautiful work, rent, live lofts, right? $10 million

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fills it fills it to capacity. So Keith, if you were taking part in that investment and let's say you gave Tom

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100 grand because you liked him, you know what is your potential exit? Now obviously you're getting a distribution,

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which is fantastic, right? Let's say you're getting a 10% dividend over the year, right? Which is a great cost of money. You're getting a distribution

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every quarter. Um, you know, that's that's great. But Keith, what if an emergency pops up in your life and you

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need that 100 grand back and you call Tom and go, "Tom, you know, I know it's been two years and I signed a seven-year

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note, but man, I' I'd really love to liquidate." Right? Tom's going to give you number one every every anti to your

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Saab story, right? But number two, at some point the the conversation's going to go, Keith, I just don't have the

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equity. I don't have the access to capital. I'm not liquid yet, and I don't have um you know, an acquisition on on

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on the horizon right now, right? I'm just I'm not to that point where I'm ready to sell off uh the the um the

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paper on this, right? So tokenization solves that problem. Keith, if you owned a h 100,000, let's just assume that we

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fractionalized Tom's asset into dollar share tokens. Okay. Um Keith, if you

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wanted to liquidate, you don't even need to call Tom, right? You go to the exchange where those tokens are listed,

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where there's a secondary trading market for those assets. Now, Matt's going to get into some of the regulation on this,

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okay? But it's, you know, but point being is you go and you sell your tokens on the secondary market, Keith, and now

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you're out, right? You're invested. You've got your money back. You've exited. You don't have it doesn't it is completely

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regardless of Tom's equity position or plans for merger and acquisition or selloff cost or be able ability to refi

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because there's a secondary market of investors that are looking to take over that position because that position is paying a dividend right so

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I know that's a lot of in the short answer but basically limited barrier entry or no barrier of entry and access

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to liquidity that is what tokenization provides in the shortest form that's amazing

8:51

Are you thinking about making a move to the Low Country? Whether you're searching for the perfect home or you're exploring vibrant

8:58

communities on the coast or dreaming of a new lifestyle, we're here to help. Contact the David Dale team today and

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let's make your dream a reality. Matt Nosia

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calling on you Matt. You know, obviously the question about you know blockchain itself and really what it is the the

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main key piece is it's decentralization of ledgers. Ledger you can compare to what your your your account ledger at

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your bank. Your bank keeps your ledger. You don't have it and you don't see anybody else's but your own. And what

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blockchain has done is allowed for multiple ledgers to be out there on one

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asset. So they're and through forms of cryptography they're able to validate and confirm. So you have what's called

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public and private ledgers um in the public ledger space which is what most people see like a Bitcoin or Ethereum

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and many of the others. Anyone has access to that blockchain ledger. So you can see all the wallets you can see

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everything that's on it and that makes it transparent. And the key piece with we'll call it

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cryptography and crypto which where the name crypto comes from is an open ledger

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system where you're able to see what a bank has. You might not see the people

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behind it because it's the accounts are limited to the alpha numeric call it wallet codes but it's you're able to see

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that it's exact amounts and the transactions between those. And the key

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then is is how do you with that cryptography and with that open ledger, you're able to see truth and

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transparency and then kind of tying it into the token type of structure. All

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what's really happening is it's an open ledger system that's open and transparent but also protected. And I

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hope that makes sense, David. Oh, it makes perfect sense. So, and I think you touched on something there for a lot of people when you say the public

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and private ledgers. uh if it's on a public ledger. I'm assuming a lot of people are going to be like, "Well, you

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said it's alpha numeric, but there's a privacy. It's even though they could see the wallets and see the moving around

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it, there's still some protections in there. Is that right, Matt?" Well, the protections, you know, how how

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wallet structures it's an alpha numeric number and you don't really So, you have anonymity behind the number, but you

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have transparency, meaning anyone can see how many coins you have.

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Okay? anyone can see the transactions that you've done. That makes the that

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public side of it, but also also ask for instant settlements, instant transactions. So when a transaction

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happens through cry through cryptography and consensus, you now have every single

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ledger which are, you know, depending on the chain, you have hundreds of thousands, if not thousands of immediate

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syncing ledgers. That transaction that happens is the settlement is instant. So

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there's none of this. Let's wait four or five days for the title company to do the insurance. Let's wait until it comes

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back from the county recorder's office. When the transaction happens, it's done. That's the neat thing about the

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blockchain. So it gets rid of that friction. Yeah. Yes. Yeah. No longer are the days where we have to wait for the title search to

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come back. No longer do we have to wait for our fiat, which is the US currency, the Japanese yen, the Mexican pesos to

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clear the entire banking system, taking the fees along the way. It can happen instantaneously.

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through blockchain and cryptocurrencies. Because I'm gonna ask that too, Billy,

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when you were talking about everything earlier in Tom's project and what have you. Most people are going to associate,

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hey, if I'm going to get into anything, I either got to use my capital, use my cash, or I got to get a loan through the

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bank, right? What you're saying is th this changes how that is all done um via

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these exchanges and be being able to come in and buy this fractionalized point. Am I getting that right there? that sort of that bank's role is going

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to change a little bit. I think you're going to see a So, a little background on me as well is I was

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in mortgage lending for the better part of 22 years all the way up to national sales director. I ran a Jenny May issuer

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secondary. So, I'm you know, we're we're we're speaking the same language here, but you know, things like verification

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of deposit can be done in seconds, right? Verification of of account holdings can be done in seconds, right?

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Proof of funds can be done in seconds. escrow money could literally you you know you could be standing at a property

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showing your client, right? Your client walks in and goes, "Oh man, this is the one I've been waiting for. It's

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absolutely beautiful. You know, how many offers are there?" Blah, blah, blah. And you're like, "Hey, let's get it tied up." Well, there is no more. All right.

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Well, man, it's 3:00. Like, I got I'll get to the bank first thing in the morning, right? Now, it's you call call

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the title company, right? And say, "Matt's title company and say, "Matt, you know, send us over your wallet address. We're going to we're going to

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send over, you know, the five grand earnest deposit in Ethereum right now and we're going to tie this thing up, right? And it's the money sent in

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seconds. And and here's the key point, guys. This is the coolest part. That could be Sunday night at 10 o'clock,

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right? There's no it there's just none of this nineto-5 shutting down on Saturday and Sundays anymore. It's 247 frictionless.

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Exactly. Now, now let's take this a step further. I don't know, you know, um, have you guys, if you guys have done

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business in Georgia, which I'm see you guys are near that area. Okay, I did a lot. A lot of the agents that I had when

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I was doing lending were in Georgia. I did a ton of business in Georgia. Okay. Um, what takes forever in Georgia?

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Title searches, right? 100%. Yep. Delay closings all the time out there. It's very difficult. Title's a nightmare

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in Georgia. Okay. Imagine using blockchain cuz so again guys blockchain

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when you open your cell phone okay and you open your banking app right every one of them is the same it doesn't

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matter if it's Bank of America or USA or whatever the case is okay there's a ledger right for the some of us we

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remember the checkbook days where you had to carry around a paper ledger right you had to go home and write stuff in and add okay

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same thing blockchain is a ledger but what but what's cool is it's a ledger to the entire world anyone can see the data

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Okay, so let's talk about that title search for a second. Let's say you had a

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new developer 5 years ago that built a home, put the initial inspection, right?

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And all the pertinent data, title information on blockchain, right? Three years later, sold the house to someone,

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they updated that on blockchain, right? To the new owner, all the title information. Okay? And now you're going

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to do the third the third transaction since inception of this home, right? Well, what typically takes forever, and

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we've all had done those properties where there's title issues and they have to get now we got to reach out to the

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plant. The plant's going to take a week to clear off this old lean that doesn't even belong to whatever, right? Well, imagine if that could be handled in

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literally, guys, seconds, not minutes, not hours, seconds. So, we're verifying

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deposits, verifying income potentially, right, for your buyers. You could verify W2 data. You could verify tax returns.

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literally in seconds. We're taking buying a home from 30 45 days depending

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upon, you know, kind of the complexity of of that loan. So guys, I mean, this could be potentially done in days with

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with That's fascinating. And that's and again, this this is not crypto, okay? Now, crypto could be a

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part of that because you're if you're transferring funds for tokens, but that's what blockchain technology is.

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It's access to public information in milliseconds and it's as fast as AI. you

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know. So, yeah. So, forgive me. Forgive me because again, I'm still in Neoi in this. So,

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you saying they could put this on blockchain. So, I I've actually had a situation where I was refinancing uh

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somebody the same David Cross, right? There's a million of us out there. Something showed up on my title work,

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delayed my closing, had to prove it wasn't me. It was some lean. It was actually like an IRS lean. I was like,

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that's not me for sure. And uh how does that get prevented

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on blockchain? Is that you know because when you say it just can be put on blockchain like who's putting it on? How

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does that even work? Yep. So that's going to have to take uh title companies to step in and work with

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counties right to obviously take all the data off of you know previous paper files uh current you know digital files

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right and and put that stuff on blockchain. Let me give you guys a hint. Okay. There's a senator out of Ohio

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Bernie Marino's big big uh I know Bernie. Okay, so me and Matt have spent had

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multiple dinners and breakfast with Bernie. Bernie was the first one. So in Ohio, vehicle VINs are done on

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blockchain and Bernie did that. Okay. Um I was speaking to someone in EXP as a

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matter of fact down at our last event with Tom um down in Tulum. Uh Tom,

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what's her what's Tasha? Tasha Tasha Chang. Yep. But Tasha owns a title company and Tasha we we conversed

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for about an hour and a half one night on blockchain and title. It's actually something she wants to tackle and start

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doing. Um so let me I I digress. Um, okay. I want Matt to talk about this

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because we have just now partnered uh with our blockchain with a thirdparty

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company called Nomix and they have a very unique um adaptation to blockchain

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called Nomix ID and Matt's actually running that but Nomix ID and Matt's

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explanation can really clarify how that data could be tied to one individual which would be immutable, unchangeable,

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unhackable and available in seconds. Okay. Are you thinking of selling your home?

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18:52

learn more. Love to hear that Matt. This is actually something with which

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the in the SEC roundts which they had over the past couple months. One of the key pieces is how do you deal with

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identity theft? How do you deal with verification? Just your same case, David, just like having the same name.

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What Nomix has, which we've adapted, is a digital ID. What this digital ID is,

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you set it up and it does your background check, certifies who you are, pulls all your data and ties it to a

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digital ID that you can then transfer with yourself. So all the backgrounds and all the work's been done. So when

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something comes up, instead of it being to your name being a differentiator, it's your unique digital ID, which is

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going to be part of this future. You'll have multiple ones. If you've done uh Google accounts, you actually probably

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don't know this, but there's a code called OOTH and authorization which is built into your individual Google Gmail,

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which you're able to log into multiple accounts. Uh we built this in with Nomix

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for blockchain and for crypto use. So, for example, if you were able, let's say on your own property, if obviously the

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county was able to do blockchain records, which you've got a couple issues. It's not just title companies,

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you have the counties that need to adopt uh, you know, adopt keeping track of

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title via blockchain. You could opt into building a digital ID on yourself and on

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your owners into that. So when anytime there was a search, they would then be

20:24

able to show that nope, this digital ID is tied to David, not to anybody else. And here's all David's background, even

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though it's privately held because it's on your digital ID. But the third party behind it has all the verification

20:37

necessary for that transaction to prove it's not you. And we've done that. So you can within our within our platform

20:44

when it comes to digital IDs and when it comes to transactions your digital ID is unique to you. It ties your background.

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All the third party verifications have already been done on you and it keeps you also from identity theft which is

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very important. That can happen in many cases including real estate. Okay. Wow. So, wow, there's so much to

21:04

unpack in that that it's just amazing. So, w with this you mentioned about the counties like how there's a lot of

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counties. I don't know how many counties there are in this country, but like this sounds like a mammoth task to move us

21:18

like you know towards that. I mean, how do you get unity and unison for everybody to say, "Hey, yeah, this is

21:24

great. Let's adopt this." I mean, is this going to be like, you know, South Carolina, Buer County does it, but you know, uh York County doesn't? I mean,

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how is that going to work? It's going to be a combination. It's going to be certain states that could

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enforce it, force it on the counties and certain counties are then are going to adopt. There are a lot we're just a

21:44

blockchain company that we deal with piece. So, there's a whole bunch of already groups pushing to do this. So, I

21:50

uh I see this happening behind everyone's backs in a quick manner. It's already pushing head head steam ahead,

21:57

you full steam ahead. So, it's not as far off as you think and it will happen and they are adopting to it. Now, here's

22:04

a funny part probably. Guess who's trying to make sure it doesn't happen? Your title insurance companies

22:10

because they charge you a fee. How many people have ever collected on a title insurance policy? Yeah.

22:16

They're earning 80 90% commissions on the title insurance policy.

22:22

Go ahead. Yeah. Now, I can imagine this whole thing, there's a lot of parties along the way

22:29

that probably are not excited about this. They're gonna have to figure out a new way to make some money. Um, everybody's got their hand in the chain.

22:35

Well, I want to block or the biggest problem in blockchain adoption is the intermediaries who make a lot of we'll

22:42

call it lowrisk money. Uh, like as you said, that need to find a new career.

22:48

Yeah. Yeah. Hopefully, they invested in uh what we're talking about here.

22:54

Yes, that's right. They invest in the blockchain here. Well, you know what behind the scenes though, it's funny you say that, David,

23:00

is you know um there's stories after stories where um years ago the

23:07

establishments, the big banks are telling people that cryptocurrency is a scam, right?

23:13

Yet behind the scenes yet behind the scenes, they're pouring their investments, their money into

23:19

building blockchains. Yeah. Yeah. No, I agree. It's so funny. It's a 180,

23:24

you know, which is I I think why we have to have this conversation because the

23:29

media, the banking institutions scared everybody, you know, that this is money launderers and and uh uh tra human

23:37

traffickers and that's all that, you know, this was all good for. And now we're coming to this point of like,

23:42

well, wait a minute, the entire system is about to switch to this and it's and I'm supposed to be excited about it.

23:48

It's like, yeah, because, you know, like I said, the internet changed everything, I would say, for the better, you know,

23:54

um and and that's what it's going to do for our money and and you know, just take down all the barriers. You know, I

24:01

there's no reason I shouldn't be able to send, you know, I got we got family in South Africa. I should be able to send

24:06

the money right now. They get it in 30 seconds without everybody else. I actually had a good friend I supported.

24:12

He was in ministry. I supported him in Africa to send him money on a monthly

24:18

basis. It took me weeks. I had to pay all this extra fees. It, you know, it

24:23

was crazy just to and he was in Cameroon. It's like what you're saying. I should be able to do this now in

24:28

seconds, right? That's right. Yep. Yeah. And with with a fraction of the fees.

24:34

Yeah. All right. Well, I need to tie this back into real estate. Okay. So, I'm gonna ask you a question. Why should

24:40

your average homeowner and why should your average realtor care about this and how is it going to

24:46

change the way they're going to do business and and change their role in all of this?

24:54

I'll take a first crack. I mean, um, the average homeowner I if they've learn how

25:00

to, uh, if they learn the system and they get involved in one way or another, number one, it's going to recuse reduce

25:07

their costs uh, in the long run, such as paying for title search, right? Um,

25:13

where that's that's the that cost is on the owners and if everyone comes on blockchain, that title search is done in

25:18

micros secondsonds instead of three weeks and it cost them 1,200 bucks for a title search, right? Um, the homeowners

25:25

will have total transparency and and the world will have total transparency in terms of who owns the property through

25:31

and through and through and we don't have to pay an attorney all that money to do the title search at the same time.

25:36

No title insurance either either, right? You you really no need for it. No, wouldn't. Yeah, you'd have no need.

25:42

Okay. That's, you know, 134,500 bucks right there every time. Yeah. And I'll give you a real world

25:48

situation. I'd like to hear from Billy and Matt, but you know, I'm in the process of tokenizing one of my

25:53

investment properties. It's an Airbnb. I bought it during COVID for 160,000 bucks. All right. Um I uh if you

26:01

remember dur during that time interest rates were down to 2.5% 2.75%.

26:07

I locked in a loan for 2.75%. I put in another $160,000 to renovate it. So I'm

26:12

into the whole damn thing for $320,000. Today gets worth about $900,000.

26:18

and I want to access the liquidity in my property. So, there's about $600,000 in that one property. Well, I can do one of

26:25

the two things. I can sell the property and pull my $600,000 out. But that stops my cash flow from the property. It's

26:31

cash flowing like crazy, right? Um um or I can refinance. But if I refinance,

26:36

interest rates are now at 7%, not at 2.75%. And you're not going to get the 100% equity either.

26:42

And I'm not going to get 100% equity. So, what do I do? And if you did sell it, you pay taxes. Yep. Exactly. So, so I'm going through a

26:49

company called Lofty.ai. This not their commercial, but that's the company I'm using. What is Lofty AI

26:55

doing? They are tokenizing real estate, single family properties, multif family

27:01

properties to basically sell off a section, a portion of it. So, they I'll

27:06

be able to sell, let's say, 30% of my property. I'll pull $300,000 out. I

27:11

still control the property, right? And I take that $300,000, go buy my next investment. and I still control 100% of

27:17

my property. So, not 100%. The investors own 30%. But like Billy said earlier, if

27:22

they want the and I'm going to promise them 12% return on their return on their money. Anytime that they want to go and

27:28

sell their portion, they can just put it right back on Lofty AI and sell and someone takes over. They don't have to

27:34

call me up. Okay. So, I know this makes sense to you, but I can imagine I'm going to have

27:39

clients out there who you just melted their brain. Okay. So, let's break this

27:44

down. You got 100. What What's your mortgage on that? Your I mean like you got

27:50

my total debt on that is call it 320,000. Okay. So you got 320,000 on it. It's

27:55

worth 900,000. You got just under $600,000. You're saying that Lofty is going to

28:04

purchase that portion of that equity. Is that what it is? Lofty is going to help help me tokenize

28:10

that property. Break that down. What's What's that even mean? Um, let's say I'm going to sell

28:16

30% off. So, I'm going to sell $300,000 of the equity of my property off the my

28:22

investors are going to own 30%. I control 70%. I still have voting power. I own the majority, right?

28:29

And I'm going to, as the investor, I'm going to promise my investors who give me $300,000 a return on their

28:36

investment. Let's call it 12% return on their money. So every month, every quarter, there's a distribution of 12%

28:42

to their account. As long as they stay with me, they get the 12%. 10 five years from now, if that becomes

28:50

$1.3 million, they also share in the upside from 900,000 to 1.3 million, they

28:57

share in the 30 because they have that that equity share, right? But I maintain control of my

29:03

property the entire time. I can build in my property management fees. It's fully transparent. They understand what my

29:09

property management fees are and I just as accessed liquidity in my property without doing a line echory of credit,

29:16

right? So, so then my question is this because people think in terms of leans and stuff

29:22

like that. So, you have leans from the first how does that how does that work

29:28

with them? Like does the bank care? They don't they don't care, right? Billy and Matt, take it to the next

29:34

level. We are tokenizing, you know, real world assets. We're helping them raise between $50 to $100 million. Same same

29:40

scenario. How does that work? Yeah, Matt, go ahead. Well, let's answer a couple key pieces.

29:48

Uh, obviously, the banks are going to care as long as the debt's being serviced. So, in Tom's scenario, he's able to keep the debt service in place.

29:54

He's able to then take a portion of his equity as long as the token structure, which they're doing in place. you know,

30:00

they may, you know, some some groups they have the ability to file a secondary lean on the property depending

30:05

on how that's structured. Uh, and so you're basically taking fractional ownership instead of having to sell the

30:11

whole thing, you're taking portions of it. And in most case scenarios, in our case, for example, there will be leans

30:16

filed so that the tokenization piece is actually secured by a legal document

30:23

that can be enforcable. One of the key things that happened in crypto in the very beginning, there was a lot of

30:28

projects and tokens out there that had no tie legally to a real world asset. Yeah.

30:33

So the way to do that is a structure where there is a legal infrastructure that has two key pieces. Number one, it

30:39

allows you to tokenize. So there has to be a law in place that says a digital token can have ownership and secondarily

30:48

you have to do a law. You have to then take that digital ownership and then be able to have a ride of ownership to a

30:54

real world asset. Real estate's pretty simple. Uh you can do two ways. You can have an entity. Uh Wyoming right now is

31:01

the most uh flexible has a lot of case law around digitization of tokens. They actually

31:08

you can legally as a company or an entity take your shareholder log or your

31:14

ownership log and put it on the blockchain. That's that's key piece, right? has legislation in place that

31:20

allows that from a state. All corporations are governed by states and each state has their own rules. And then

31:26

the second part of that is they're doing you can do it through an entity. You could do a corporation that turn the corporation then would then have that

31:33

lean on that property. So the property in question would have a lean from an

31:39

entity, a legal entity that has the legal ability to then tokenize or digitize that ownership via blockchain.

31:47

Uh what we've been doing is taking investment assets whether it's uh

31:52

warehouse properties, agriculture properties to hotels to real estate properties, putting them into a fund

31:58

which is normal. Most people participated in fund structures where the fund is legally allowed to have

32:04

title and ownership to a real world asset. And then we're taking that title and ownership which is in a Wyoming

32:11

entity and blockchaining it. Meaning we're taking that shareholder log and making digital instead of physical stock

32:17

certificates, they're digital stock certificates that are on blockchain that are tracked and transparent tied with

32:25

digital IDs, right? So you have that digital ownership to it and so it could potentially be transactable. Does that

32:32

make sense? Yeah, makes perfect sense. Hope it makes sense to people out there. I have a question though. So, you know, because I

32:38

know a lot of people they would use loans to strip equity to avoid taxes, you know, triggering that. Is it much

32:44

the same way? Like when Tom's scenario with him doing that, does that trigger any sort of tax implications at all?

32:50

Depends. So, if Tom's doing a structure where it's deemed a a loan, then yes. If

32:57

Tom deems it where it's actually selling of equity and there's not a covenant in place, then it would be a different

33:03

scenario and he obviously everyone should seek their independent tax advice, right? Give tax advice nor CPAs.

33:10

Please consult your tax professional, but there there's a difference between an equity participation and a debt

33:17

covenant. And there's uh there's some specific structure around how to put those in place.

33:23

Okay, that's awesome. You know, and I hate to again go back to very basics,

33:28

tokenization is just simply digitizing that ownership. That's all it is, right?

33:35

And it's simple for the ownership and making it fractional. The it's just taking if you had a 100

33:42

units of a limited liability corporation that owned a proper a golf community in

33:50

South Carolina. Right. Right. and you decide to take 30 of those and we want to say look there's 30

33:57

units of this LLC and now we're going to make that we're going to create 30 individual ownerships but with

34:04

tokenization you can divide that by 168 decimal

34:09

points. So you could have almost a humongous number not just 30 but a humongous number of those

34:16

depending on how you structured your token contract. They call them smart

34:21

contracts. The joke is they're not really smart. I call them stupid contracts. But uh if they if you can

34:26

create a contract that can make a unit divisible, that is the divisibility or the

34:33

tokenization of that underlining unit. Does that make sense? And that's the magic, isn't it, Matt?

34:39

Because to Billy's point earlier, you know, Tom had mentioned the accredited investor, and that's basically just code

34:46

for somebody who's got a ton of money, pardon my French. and uh the rest of the little guys, they can't have

34:52

access to some of this stuff. But what this does is it says, "Hey, we're that that guy who had all the money, had all

34:58

the opportunity." It says to the guy working in the factory down the street, you know what? Because of that, you

35:05

know, those that those zeros behind there, you can come in and get your portion. Am I correct in that? Is that

35:12

am I assessing that right? Well, let's be very clear, okay? the

35:18

that creates a security. Okay? Because the ability to have

35:25

fractional ownership where a person is now even if it's real estate, there's two component components here. The

35:33

actual fractionalization of a real estate property could create a security

35:40

out of the ownership. Okay? Not just a real estate investment. So,

35:46

as long as the asset follows existing securities laws and is transparent

35:52

and has a proper exempt registration that allows them to, it could. What you

35:58

want to be weary of are the projects where they say, "Here's ownership in this. There's no information."

36:04

You got to make sure that there is proper information and transparency

36:09

brought into those tokenization projects because that's where the lot of fraud happens. So

36:15

what the FTX thing was stuff like that little different the FTX issue was is

36:22

you thought you were buying you were buying Bitcoin on their platform and they didn't have the Bitcoin.

36:29

Oh your your statement said you got Bitcoin but they didn't have it. That's exactly

36:35

what all your Wall Street firms do with your stocks. Okay, that's called naked shorting

36:41

darkpool trading hypothecation. That's what they're allowed to do and

36:46

they all let that happen. With tokenization on these pieces, there needs to be a proper accountability and

36:54

a true record in place, but also transparency when you do fractionalization of any type of asset.

37:02

The the jury is still out on the difference between tokenizing a company

37:09

that has assets and tokenizing your car or your tire or your wheel. They are

37:16

able to tokenize artwork because they consider artwork a collectible

37:22

and there is no cash flow. with a real estate asset where there is cash flow

37:30

that becomes a security uh and there there is still some debate on how that

37:35

has to happen. So, as people are looking at these projects, what we've chosen to do is make every asset that we're doing

37:43

actually file with the SEC, have audits on an annual basis, and be complete,

37:48

transparent, and truthful, and have third party opinions to back up those assets to protect investors.

37:56

Okay. I'm probably going to jump ahead here because I was going to ask you this. So, I've heard a lot about this

38:04

whole concept of like with the the whole Ripple lawsuit, you know, security um

38:11

versus a um um uh what well, I can't remember what the whole thing was about,

38:16

but this Clarity Act that they're talking about, does that deal with how, you know, is it where are these that

38:22

going to get managed? Is it the SEC or the the um what is it? The CFT Yeah, the CFTC. What kind of

38:31

you've got what's called stable coins and then you have securities. XRP has a big lots of utility. That just means

38:37

use. Yeah. And the XRP, they were proven to not be a security in the secondary market. That

38:44

means once you already have XRP, if you want to use it, it's not considered a security. Got it.

38:49

The unfortunate part within their settlement is they said fine, it's not a security after you already have it. But

38:55

they did so much solicitation to have people buy XRP in the beginning that was

39:01

a security. So it comes down to the solicitation and how it's actually created. There is

39:08

clarity and the SEC's already given clarity on that. So there there are some

39:14

key pieces in that that just need to be looked at. uh when you're dealing with crypto if you're buying crypto in the

39:21

secondary market like an XRP, Bitcoin, Salana, even trusted smart chain, those are not securities. They have a lot of

39:28

utility. When you're buying it, if somebody comes to you and says, "Hey, you should buy

39:33

this XRP because it's going to go up." You got to be careful because you're not

39:39

participating. You're buying it from them. If there's not a utility, that could be considered a security. Once

39:45

again, seek your legal counsel when it comes. We do not give legal advice, nor recommend accordingly. So,

39:50

Amen. And amen. Listen to what Matt just said. All right. So, Matt, I want to let's let's ti dive into um this

39:57

project, this T7X, and sort of what the smart chain what what are you guys doing?

40:03

I want to just dive into it. Share with us what you're doing, how it works, how people can get involved.

40:09

Sure. So there's there's a couple key pieces to it when you're doing tokenization and when you're creating cryptocurrency there I would call them

40:16

three key pieces or to the ecosystem. Number one, you have to have the actual assets. You know what are you going to

40:22

do? Secondarily, you need a system. You need to have a platform that is going to

40:29

keep all those ledgers. Remember we talked about those ledgers, right? Those ledgers that keep track of it. And then third, you need a transactionbased

40:35

system. Uh so a couple key pieces obviously the trusted smart chain is the railroad

40:43

tracks or it is the cell phone towers that do all the ledgers and communication that is a decentralized

40:50

blockchain system that is we believe not to be a security where it's like a

40:56

bitcoin it's like an ethereum that allows people to operate those ledgers

41:01

and if they operate those ledgers just like bitcoin you actually earn that bitcoin

41:07

And that's that that's the fees for running this decentralized ledger system. And that is something which

41:14

we've been involved in from a software standpoint building out significantly uh

41:19

close to 20,000. We call them nodes. They're really computer systems that keep track of that ledger that people

41:26

are buying the software, running it like a Bitcoin miner and building out those ledgers. Now, that's great. The next key

41:33

piece is what are you going to do with it, right? Where is your utility? Where is your use? That's where the assets come in place.

41:39

Whether there are collectibles, whether there's people like prepaid credit cards, you can use them at restaurants

41:45

and hotels, certain coins like an XRP or pieces. Those are we call those are real world

41:51

assets and we call those tokens or those are smart contracts. We've got projects that are hotels in Tulum that are taking

41:58

a fraction of their ownership and tokenizing to real estate projects all over the place that could be involved

42:05

from agriculture to hotels to single family residences in different places

42:10

where they're fractional ownership and they are securities. Hence, they have to do a registration with the SEC. They

42:17

have to do audits, have attorney opinion letters, and be transparent.

42:23

Well, that's great. So you got the assets, you've got the railroads that that means that the assets can

42:29

operate in the railroads. Well, what if people want to participate? Well, then you need a transactionbased system. T7X

42:36

is a platform similar to a Coinbase, similar to a Crypto.com or a Binance

42:43

that has put has put specific protocols in place that is compliant around the world. Meaning wherever the jurisdiction

42:49

is, they follow the jurisdiction guidelines to make sure there is a potential transactionalbased system. So

42:55

if people do want to, as was stated before, they would like to transact or

43:01

sell or get in and out of cryptos as well as real world assets, they have a

43:06

system that keeps track of legally all of those types of transactions and does

43:13

all the reporting in place so that people don't have an FTX debacle. They do not allow for settlements unless it's

43:20

real buying and real selling which is the promise of blockchain. If you own a

43:25

real estate property which you've like Tom has taken a portion of it he doesn't want them to be able to hypothecate that

43:31

and meaning sell five six times they bought it from Tom that brings Tom's value down. You want a true trust and

43:38

transparent system that's able to keep track of all that so that you as a as a

43:44

owner as an investor as a participant have truth and transparency. So those

43:49

are three key pieces we've built in. So hence we have the trusted smart chain which is the blockchain that's the

43:56

bitcoin that's the ethereum that has all those independently operated ledgers

44:01

that are keeping track of that do cryptocurrency that I'm sorry do crypto cryptography and consensus to validate

44:07

transaction instant settlements then you have the assets the assets are we've got a tulum project we call shella we've got

44:14

grow estate which is agricultural projects these are real transparent

44:20

securities that are on the trusted smart chain that use the trusted smart chain

44:25

for all of their transactions. And then we got the T7X that has a regulatory thing and had regulatory compliance to

44:32

make sure that assets are properly tracked with instant settlements and keep uh all that truth and transparency.

44:38

Those three things coming together amongst many others and trusted smart chain has many other partners as well

44:44

that can adopt its truth and transparency system that allows for utility in use. Without utility in use,

44:53

you have XRP's problem for a while ago which was people bought a lot but nobody would use it. Now bank starting to use

44:59

it and so you you build all those key pieces in so that you have a system

45:05

which gives the promise of called a blockchain or truth and transparency.

45:11

So so then for so that's awesome. I mean everything that's really you broke that

45:17

down very simple terms. So for a lot of people I think because this is the question I get I talk to people all the time. Hey, have you paid attention? How

45:24

do I get how I get on? And personally, I use Coinbase, right? That was sort of my that's how my son got me on. So, when

45:30

you bring that up, because I say Coinbase was my on-ramp, right? Sort of like the closest thing to dealing with a

45:36

a marketplace, right? This says, "Hey, all this stuff is here and I could trust my kind of trust, I guess, right? Hey,

45:43

I'm putting my money in here. I'm going to transact. I got my stuff and, you know, blah blah blah." But so the the

45:49

the T7X platform is that sort of where people would have like your average

45:54

everyday person would sort of have their on-ramp to what you're doing is or am I missing?

45:59

Tell me two things. The we call them issuers. Let's call the real estate project itself. They would be able to

46:06

our integrated system be able to directly solicit direct from them. And then the T7X

46:13

platform would be a secondary platform that allows depending on the regulatory environment for people to transact like

46:20

a Coinbase. And there would be off-ramps and on-ramps meaning uh they could go to other cryptos they wanted to go they

46:27

wanted to go they wanted to sell an asset go to Bitcoin they wanted to go to US dollars they would like to go to different pieces. All that's available

46:34

with instance settlements. So it's kind of it's a Coinbase plus we'll call it.

46:41

Okay. That's awesome. So, where are we at? And I know regulation is a big part

46:47

of what we're talking about here. The United States, you know, everybody's sort of trying to take this role of, you

46:53

know, who's going to be the leader in this. Where are we at in all this process? And and let's also talk about

46:59

the term you hear a lot, stable coins and all like where are we at in this whole process of of this thing moving

47:05

forward because we came it feels like we came out of the dark ages and it was being bombarded and trying to be killed in the womb if you will to now all of a

47:12

sudden like hey wide open. where are we at in that process of making sure that

47:18

people are sort of safe if you will any investment you know never guaranteed but

47:23

as this because we're going from here to here right what's what's the bridge the

47:30

bridge and the transition are truth and transparency so uh Europe is actually

47:35

ahead of us they've been very clear about their guidance for a while okay they have they have VASP laws and CASP

47:41

laws virtual asset service providers and crypto asset service provider laws in

47:46

place. Uh there are there are other countries that are ahead as far as

47:51

giving clarity around regulation. The US is behind thanks to the previous administration.

47:57

This administration currently is trying to catch up. The unfortunate part is there's a lot of intermediaries that

48:03

don't want it because the US has created a very big city called New York City off of intermediaries.

48:09

There's a lot of power behind that. I still think the US is behind. Uh the stable coin, we'll call the genius act

48:16

does talk about stable coins. It gives some clarity that makes it where

48:21

everyone wants to buy a bank now. Banks don't like it because everyone wants to be a bank because that's some of the requirements or it's easier for your

48:28

bank to have a stable coin. Uh they've made that very I mean you could definitely tell who lobbyed for the

48:34

stable coin. It was definitely the banking industry. They wanted to control all the float. they wanted to have. So

48:39

they kept kept themselves in power. Uh it was a you know it's not as beneficial for uh certain businesses but there is

48:47

still some clarity to be had in the US. I do think we're still behind and we are the largest investment market in the

48:53

world. Uh and as we adopt hopefully we'll catch up. Uh now does that mean

49:00

we'll be behind forever? I don't think so. But there is a lot of speed that's happening in this development. projects

49:07

can be launched faster. Now, you go back to your question about transparency and safety. There's a lot being built around

49:14

digital IDs. Uh, Nomix has been a great partner with us. Uh, we've seen a lot of other groups do that. Uh, there's a lot

49:19

of because Europe is ahead. They've got a lot of things in place and we're adopting some of those rules here in the

49:25

US. There's a lot of acronyms called the travel rule. Uh, know KYC, KYT, KYB,

49:31

know your client, know your business, uh, know your transaction. There's a lot of pieces in place that are much tighter

49:39

in Europe than they are in the US. And I think those are best practices that can be adopted in the US. We comply with our

49:46

European laws because we're licensed in Europe. So, we bring that over here. And

49:51

Coinbase and a couple others are starting to do those. Uh Kraken and Binance do those in Europe already. They're pretty on top of it. Now, the

49:58

next question comes down to you said your term safety. How do you make sure you're not going to lose your wallet? A

50:04

lot of people I got hacked. I got Well, as I say, do you go to cold storage? You know, because that's the other term. I I remember first time

50:10

somebody said you got cold storage like what is that? They got a new term called warm storage.

50:15

They've got cold storage, hot storage, and now warm storage. Now, what we've chosen to do is we've

50:21

actually gone with a custody structure where uh they're actually insured up to€10 million euros per incident and

50:28

they're a top top defense cyber defense firm out of Europe that ensure the

50:33

wallets. That's I think going to that's going to custody is going to have to go that route. Uh we're already going that

50:39

route on purpose because people want to know there is something insurance because a lot of people will lose their

50:45

seed codes which is like your secret codes which is why what 15% of bitcoins disappeared because people lost their

50:51

codes and they're forever gone and forever gone right. So but that

50:56

requires a custody structure in place. It also requires a lot of security cyber security. Uh so there's a I think that

51:03

that's going to be a growing business. We don't do that. We actually outsource that to a top firm. uh everyone has to

51:09

stick in their in stick stay in your lane and do what you do best and there I think there's going to be a lot of auxiliary services that are going to

51:15

tighten that up. I do see that as being favorable and already in place and I

51:20

think those key those key parts are in place. It's just going to take the adoption over the next year or so people

51:25

will feel comfortable there. Right now one of the biggest issues with with AI is cyber hacking. It is bad.

51:34

That's why you don't answer the telephone from somebody you don't know who it is. You don't answer an email, you don't answer a text that unless you

51:39

know who they are. You click on those text, those emails and they can go right into your computer and hack everything. So from a systemwide for everyone, be

51:46

very careful. If you don't know who's sending you a text or an email, even if they that you know who it is and it looks suspicious, call them on the

51:53

phone. If you really send this, be very, very careful. Especially for the older crowd, my parents included, that really

52:01

don't just click on any text or any email anymore. uh they have they hide within that click uh these viruses that

52:09

get in and steal all your data and your information. So you got to be very very careful. Yeah. And can you can you break down

52:17

because again you know you guys are you guys are really at the top of your game, right? And you I mean obviously you're

52:23

you're in deep and you're talking to people that really get it, but that's probably 1% of the people I know, right?

52:28

So, I want to break down this sense of custody, you know, because like you know, most people think they don't

52:34

understand really the term custody and what does that really mean and and how does that work with um you know, my

52:40

tokens like you know because you know like right now Coinbase has custody of

52:46

my tokens, right? And I can have custody. It's just like pulling money out of the bank, right? I can store it in my safe in my house, store cash. Same

52:54

thing with these tokens. Just break that down for anybody who might stumble on this video and be like, "What is he

53:01

talking about with custody and who holds it? What does that mean? Are you a bank? Are you just like a bank?" I mean, does

53:07

that make any sense? Sure. So, there's a couple different key pieces. What's called centralized and

53:13

decentralized? A centralized structure is where you have some a third party in place that kind of manages or deals with

53:19

a certain portion of the transaction. custody is technically uh centralized custody is technically a third party

53:26

that will hold it for you on your behalf just like any type of other fiduciary

53:32

would and their job group we use actually ensures against hacking. So if

53:37

there is a hack they have a you know top tier insurance policy where they cover 10 million per incident. Now the crypto

53:44

community doesn't like most of the current crypto community does not like when someone else controls it for them. They want to control themsel. They want

53:51

to be decentralized. And when you're decentralized, you you now you're holding it yourself. Do you

53:58

hold it in a we'll call it a digital wallet that's connected to the internet at all times? That's considered a hot

54:04

connection or a hot wallet, which could be subject to hacking. Or do you put on the thumb drive and disconnect it, put

54:11

it in your safe, and now it's called cold, where it's not connected. Hot means connected. or do you do a warm

54:18

that's got a combination? Uh the decentralized methodology is usually considered

54:26

favorable as long as it's it's in what's considered cold storage where it's not connected to the internet where it

54:33

cannot be hacked. Unless for some reason they discover your seed codes or your

54:38

12word phrase and they find it somewhere they can access it and they once they

54:45

once they have those 12 codes they can access your your assets anywhere. So,

54:51

how do you then decide as an individual, do I want to keep it decentralized and away from institutions or I want to put

54:58

it with an institution and let them hold it and hope that they're going to keep it safe and ensure me against it. Now,

55:06

from a regulatory standpoint, most of the transaction systems you need to be a centralized structure and you need to

55:11

have custody in place. So some so make sure you go with a group that has an insurance policy that ensures against

55:19

hacking. That's best practices. Some groups have multi- signature. They call

55:24

multi-IG meaning you need five or six people, three or four people to actually log at the same time with 16 pieces in a

55:30

certain order for it to be accessed. Well, a group had that problem. They got hacked for a couple of billion and you

55:36

know not too long ago. So there is our preference is go with an insured group

55:42

that has a proper insurance policy because if it does happen there you're going to protect yourself and get paid.

55:49

And there are groups that want to hold it on their own that want to hold their own little treasure wallet or whatever

55:55

it might be which a small little thumb drive that they can connect and they can disconnect and put it in their safe at their house. That's great. Write down

56:01

your seed code. But if you lose the thumb drive, you lose your seed code. Guess what happened to it? It's all

56:06

gone. So is the risk is it a higher risk of you an individual to lose your thumb

56:12

drive and lose your seed phrase or to put it with a custodian that has an insurance policy to protect yourself and

56:18

everyone has their own internal preference on what they choose. And I think just like any type of uh

56:25

diversification, people should look at diversification of their security as well. Some they're going to want to have

56:30

in cold storage, some they're going to want to have in custody. That is a personal preference which people need to

56:36

take a look at uh in the future when it comes to digital assets. I hope that makes sense.

56:41

It does. Well, it does to me. So that and so trusted smart chain you guys

56:46

would be able to custody. Is that correct? No. So trusted smart chain is a decentralized structure.

56:52

Okay. So I missed one of our partners is T7X and they have a centralized insured structure. Got it.

57:00

We are a decentralized blockchain. Trust a smart chain is a decentralized blockchain that people can download the

57:06

code, they can set up their own wallet, they could do whatever they want to do. Okay. But if you want to move it to a

57:13

system like T7X that does have insure insurance, does have insured wallets,

57:19

they are allowed to do so. Okay. So then how would people God, I

57:27

feel we've been on for an hour. I feel like I could talk to you guys for like days right now, but I I don't want to do that because

57:32

I'm getting a mind melt again and and I poured hours into freaking YouTube videos and watch all this stuff. Um, I

57:39

want to just talk about real quick, we'll wrap this up. How how would people get involved with your group? Where's

57:45

their on-ramp? Who would they contact? Where should I send them and tell them if they're interested in finding out

57:51

what you're doing and how would they get a piece of this exciting new world that we're going into? Billy, why don't you

57:58

take that and as you're talking, I'll feed some links for people since we're at the top of the hour soon.

58:03

Yep. So, right now, um, where we're at from Matt was, as Matt explained, a kind of ecosystem structure is we're we're

58:11

building the framework for the blockchain, right? So, a blockchain is built by ledgers. Those ledgers are

58:19

stored on nodes, right? So, imagine a room full of hundreds and hundreds and hundreds of computers. We're basically

58:25

building out that infrastructure right now virtually with nodes. Okay. Tom's

58:30

got I don't know how many Tom Tom has a lot of nodes at this point. I don't know how many Tom has. Why doesn't that surprise me at all?

58:37

I got I got an S load. Yes. Uh and and to clarify to to put it

58:43

in simple terms, what a node is is for most of you hopefully you guys have at

58:49

least heard of Bitcoin mining, right? They may not understand exactly what that is, but basically you in the day,

58:54

back in the day, you could buy a computer, you plug it in the wall, put a script on your laptop, and for um

59:01

creating and storing transactions on Bitcoin, you would get pieces of Bitcoin, okay? Fractions of Bitcoin.

59:07

That is called mining crypto. Okay. Um we are the nodes on our blockchain

59:12

effectively store the data, right? Because everything's virtual and you no longer have those big bulky computers.

59:18

You could do it virtually. And for storing that data, you get distributions of trusted smart chain coin. And our

59:26

trusted smart chain coin models the same framework as Bitcoin. So same economics,

59:32

same distribution model, same deflationary supply, right? We we why out master the master, right? So we we

59:39

structure our tokconomics the same. So basically where we're at right now is we we've um we are constructing our

59:44

blockchain with 200,000 nodes. We've sold somewhere around the range of 19 somewhere between 19 and 20,000 at this

59:51

point. Um, and we have about 180,000 left. Uh, as I said, Tom's got a lot.

59:56

And basically, your um, you know, reward uh, for operating a node is you you will

1:00:02

earn trusted smart chain coin. Uh, which will be not only used as utility within

1:00:08

the T7X platform, right? That that um, that team fractionalized the assets and

1:00:13

does the real world assets, right? when they are the blockchain for that, but we have other partners that we're bringing on as well. So, that's the most

1:00:20

immediate um level of participation is to be a node operator and actually help

1:00:25

build out the framework of this entire blockchain. Okay. Um the second piece is once T7X has its first assets uh um it's

1:00:35

not approved qualified with the SEC, which should be here, you know, hopefully in the next month or so. um

1:00:42

then uh investors will be able to take part in act in those actual fractionalized assets but by being part

1:00:50

of the community. So there's buying a node right and and contributing to the

1:00:55

network and helping build out the blockchain. Then there's the community aspect in the trusted society which is

1:01:02

the community that we build around the blockchain. Right? We do crypto education twice a week at 9:00 a.m. We

1:01:09

call it breakfast club. Uh we have a fantastic affiliate uh program in there. You can earn earn a couple extra bucks

1:01:15

for referring uh some friends. Um we do events almost every quarter. We just got

1:01:20

back from an incredible event down in Tulum at one of the resorts that is actually tokenizing using our

1:01:25

blockchain. Um Oh wow. a lot of our members are able to go down and meet with the uh the billionaire that owns those resorts and

1:01:32

hear from his mouth as an actual owner of an asset why he's tokenizing and

1:01:37

offering fractionalized uh portions of that asset. So here very soon investors will be able to take part in actually

1:01:44

investing into that regulation structure on that SEC approved asset um and

1:01:51

transacting on that T7X platform. So, for right now, the most immediate is Tom

1:01:57

put a link in there um where you guys can uh can get started. Um operating a node. And what

1:02:02

does that mean? It's very very simple. Okay. Break that down. Yeah. Basically, buy a node. The more nodes

1:02:08

you have, the more tokens you're going to get, right? Equal distribution happens daily. And it goes across all

1:02:13

active nodes, right? So, if there's 100 nodes, 100 nodes get the distribution of the token, right? If there's 10,000

1:02:19

nodes, 10,000 nodes get the distribution. Which means the more nodes you have, the more token you're going to get. If you relate way back in the day,

1:02:26

if you had one Bitcoin miner or 20 Bitcoin miners or in case of Tom, I

1:02:32

don't know, 70 or 80 Bitcoin miners, how much Bitcoin would you have today, right? So that's the benefit of owning

1:02:37

more nodes. You get more token. Okay. Um and then uh basically we our support staff will set you up with your hosting

1:02:45

solution. One of the hosting solutions we offer is a point-and-click. Tom's done it. It's very very simple. That is

1:02:51

the what's called proof of work. Okay, that is you connecting your uh node to

1:02:58

the internet to provide that decentralized network and power uh for

1:03:03

the blockchain to operate. Okay, very simple. Couple clicks of a button, that's it. You're up and running. It's

1:03:09

very, very easy. What's the time commitment somebody would have on this? you know, it's about

1:03:15

45 minutes probably from initial setup to hosting and then, you know, as often

1:03:20

as you want to log in and giggle as you look at how many tokens you have, right? So, um yeah, there's no there's, you

1:03:26

know, it's like I said, as long as your node is hosted and our hosting party, just keep your credit card on file. It continues to charge every month. It's $2

1:03:34

per month per node. So, very inexpensive. Um, and as long as you are connected, you're going to earn those

1:03:39

digital rewards. And this is the cool part, guys. you earn the way we structure the tokconomics which is the

1:03:45

economics and the distribution of our tokens. Okay, there's only 21 million token will ever be minted that will take

1:03:53

about 130 years which means you know code as long as it stays active stays

1:04:00

hosted and participates to the network you will earn trusted smart chain coin for the better part of 120 years.

1:04:06

That's amazing. Yeah. and and okay because I want to wrap up but going back

1:04:11

because you talked about that's a key thing I don't think people understand they're so used to dollars and don't

1:04:18

understand the diminishing value you know that you know we've lost 100% of

1:04:24

the value in 100 years right so right could you touch base for people on that how important it is to have limited

1:04:31

supply and also the utility like because they're going to be thinking I hear

1:04:36

Ethereum Bitcoin all the and how that the the it's the use case the

1:04:42

utilization of it that is why it's val you know not only how few it is but also

1:04:48

what specifically is it used for. Can you just touch base on that in a very simple term for people to kind of grasp?

1:04:54

Absolutely. Imagine if over the last 10 years the Fed didn't print any more dollars.

1:05:00

Right. Right. It just stopped. Broke the printing presses. Got rid of the mints. That's it. Right. There was no new money made.

1:05:08

How much stronger would your dollar be today? Okay, now let's let's rewind all the way back to when, you know, the very

1:05:14

first curren let's let's say the first dollar bill, okay, was presented, right? And they said, "Okay, we're only making

1:05:22

21 million of these paper dollars, right? And it get out there and spend

1:05:27

them. That's all we're making." How valuable would$1 be right now? Oh my gosh. It'd be spread. It'd be spread. Let's

1:05:34

just talk about the US. One dollar would be spread across or 21 million dollars

1:05:39

would be spread across 300 million people in the US. Yeah. I mean, yeah.

1:05:44

Right. Our dollar, you know, you buy a house with a dollar, right? Most like maybe or a fraction of a dollar.

1:05:50

Yeah. Right. So, that's the idea and that's where that's where cryptocurrency really has its brilliance. Okay. So,

1:05:56

think about this for the average person. Now, I was in lending for years, and we

1:06:01

all know there's zero down projects and all the and and loans and all these things, okay? But let's let's imagine

1:06:07

they're warm. Let's go back, you know, 15 years, right? 15 years ago, you had to save what, Tom, for a $300,000 house.

1:06:14

About 50 60 grand. Yep. To buy a house, right? Now, let's assume you're an average income

1:06:20

family. Okay. That takes you five, seven, 10 years to do. Well, what's

1:06:25

happened number one to the market? So you were saving for this particular house, but in that 10 years, you no

1:06:33

longer can afford that particular house because that particular house has doubled in value. Right? Now, what

1:06:39

happened to that savings? You're saving, you're putting money in, and the dollar is devaluing, and you're saving, you're putting money in, and the dollar's

1:06:45

deval. It's like it's like this ladder you can never climb. Right? Now, imagine

1:06:50

if 10 years ago, right, you bought Bitcoin.

1:06:56

You wouldn't be financed, Billy. I could have bought Bitcoin. You wouldn't You wouldn't be buying your

1:07:01

house, right? You'd be getting a loan against your Bitcoin and paying cash for it. Okay? That's that's where it's going

1:07:07

to affect the the real estate market as well is because as soon as people start to realize I can leave my money in a CD

1:07:13

or or in in a my savings account or whatever kind of garbage that our government continues to devalue or I can

1:07:22

and and go try to wire $25,000 out of your account today and see what kind of

1:07:28

Spanish Inquisition you get, right? versus versus buying Bitcoin or any

1:07:33

other cryptocurrency that isn't meme scam nonsense. There's some out there. Watch out. Okay, but put it in a put it

1:07:40

in a solid layer 1 project and just let it let it accumulate. Right? That is

1:07:45

what we framed trusted smart chain. Okay? The first four years 2.6 million

1:07:51

get to token get minted per year. The next four years 1.3 per year. The next

1:07:57

four years 650,000 per year. We have created uh a limited supply and higher

1:08:04

demand. We all know what happens to the housing market when there's limited supply and high in demand. That's we've

1:08:09

all seen that. We're all in the real estate, right? That's that's the go that's the golden goose. Now add like

1:08:16

you said, what is the reason to buy it? What is the reason to have it? Right? What makes something valuable? Okay. um

1:08:23

when you when you talk about buying a token, what happens when you buy a

1:08:29

token, especially in a in in like a a nice large chunk and what let me explain some better terms. Why is everyone in

1:08:35

crypto freaking out right now that governments all around the world are talking about buying massive amounts of

1:08:40

crypto crypto to put in their reserve? Because when there's a lot of buying, what happens? You're allowed to charge

1:08:46

more. Price goes up, demand goes up. Okay. what we have some of our utilities from some of the grant recipients. T7X

1:08:54

is one of those projects. Okay, trusted Smart Chain takes money gives it to that platform to use the blockchain, right?

1:09:02

Some of these projects are going to be hundred million dollar projects doing dividends. Well, David, if if you are in

1:09:09

uh one of the asset managers and you have to do 15 million a year in

1:09:14

distribution out to investors and you're using the trusted smart chain coin, that

1:09:20

15 million comes in from the project in fiat, right? Let's just say it's oil. It's one of our projects. Okay.

1:09:25

Yeah. You then go to the T7X platform. buy

1:09:30

$15 million in trusted smart chain coin and then facilitate the distributions out to the investors in that project.

1:09:37

Well, what do you think happens when you buy $15 million of a token?

1:09:43

Well, it goes up if it's on an exchange and all the bots and all the traders and everybody

1:09:49

watching start seeing the the little line go up. They're called green candles, guys. They And everybody

1:09:55

That's right. They jump on the train and the train starts going faster, throwing more coal in the fire, right? But what

1:10:02

what the the favor that T7X has done for us, right, with with using our

1:10:08

blockchain is created that function, that utility of high buying pressure in

1:10:15

order to facilitate those distributions, which is going to catch the eyes of the whole crypto world, right? And then, you

1:10:22

know, there should be hopefully some price appreciation there, right? But I can tell you

1:10:28

it won't be uh it won't be deflationary like what the US has done to the dollar over the

1:10:34

last handful of years. Yeah. And I think that's that for everybody is is is the the lesson

1:10:40

learned here is that that's that's the power of this because it it the the game

1:10:47

we've been playing's been rigged this whole time. And you know, unless you were you were in on the game, you were

1:10:54

never going to win. And this is a chance this is a generational ship that's to a thousand generations for some families

1:11:00

that could change their lives if they do this now and they get involved now. And here's the difference, David. Um, we're

1:11:06

talking about uh the the I save the golden nugget for the very end, and I

1:11:11

like not to close it out, but here's the golden nugget. Most of my friends who invest in crypto and buy the coins.

1:11:18

What they're doing is they're buying the coin. In other words, they're buying the egg. Once they sell that egg, it is

1:11:25

gone. A trusted smart chain to participate as a node operator. You are

1:11:32

not buying the egg. You are buying the goose that lays the golden eggs on a

1:11:37

daily basis for the next 130 years. That's what we're doing here at the trustless smart chain. So you're you're

1:11:44

you're eons of years ahead in terms of what we are doing. And the reason why we

1:11:50

have real world utility, real world usage is what Matt is doing at the T7X

1:11:57

is he has decades of experience bringing hundreds of companies public. He and his

1:12:04

team have helped many private companies, small cap, small cap size companies

1:12:09

raise money, 50 million, 100 million, even more. And through our blockchain,

1:12:15

Matt and his team can help them raise capital to expand their businesses at a

1:12:20

fraction of the cost on our blockchain. And the real thing that hooked me is

1:12:26

that all of the real world assets that Matt helps bring on our chain has to be

1:12:32

reggga a sec cleared. It is. That's key. You know, it's so

1:12:37

funny, Tom. That is a powerful point because I remember a long time ago I had a friend that owned a pager company used

1:12:44

to sell cell phone like before cell phones became and I remember he sold he had this big company he sold it and I

1:12:50

said what are you why are you selling it man your company is so successful he's like I'm getting into cell towers

1:12:57

and and at the time I didn't get it you know and I'm like that that's like that was you know but it's it's a

1:13:03

similar concept right like don't buy the token buy the thing That's, you know, that's

1:13:09

the underlying force behind it all, you know. So guys, all right, Matt, you want to close us out, please?

1:13:15

Yeah. Close us out because this has been awesome. Well, the future of decentralized

1:13:20

finance is upon us where we have the chance to put the power in our own hands, the the public's hands, the

1:13:26

people's hands instead of in the in the hands of the intermediaries. uh and create true value for both buyers

1:13:32

and sellers and creators, creators of assets, creators of developers of projects. People have a vision to put it

1:13:39

in place. And this will affect the real estate market heavily. It will speed up

1:13:44

transactions and processes. It will it will make the the move of assets faster.

1:13:50

And I would recommend everybody get involved uh in their own understanding of what blockchain can apply to real

1:13:56

world assets, specifically real estate, and to be a part of the egg ownership we'll call the hen farm. Uh to have the

1:14:04

that endless supply because there's only a certain amount of hens available. Unfortunately, there's not an infinite supply and uh looking for that truth and

1:14:12

tr transparency is what's most important. What's the trust and transparency at all levels to make a

1:14:18

system that can be adopted? Uh you want a system that people want to adopt into.

1:14:23

You better be truthful. You better be transparent because the days of crypto lies are over and everyone should have a

1:14:30

chance to participate if they choose to. Outstanding gentlemen. I can't thank you

1:14:36

enough uh for joining us today. I just this is so powerful. I hope anybody who

1:14:42

comes across it understands what they just received. And I'm super excited,

1:14:47

Tom. We're going to share this with everybody. I I, you know, don't be surprised to see David up there, you

1:14:53

know, getting some nodes, man. Got me juiced up. But, uh, thank you again. We

1:14:58

so appreciate it and, uh, and I look forward to seeing where this thing goes with you guys. But, thank you.

1:15:03

Thank you for hosting this podcast, Hazum. Appreciate you. Thank you, guys.

1:15:08

Thank you, guys. All right. We'll talk to you soon, Tom. Thanks. Don't forget to follow, like, share, and

1:15:16

subscribe to Real Talk Hilton Head and leave us a review to help others discover the Low Country lifestyle. out.