I chuckle when another “software-as-a-service” is announced because I remember when dashes in the name conveyed mystery. Since I like nostalgia, I thought I would introduce my handle, “Blockchain-as-a-Channel” which represents a new advertising channel for real estate that complements print and web advertising.

Economic Service

Software-as-a-Service (SaaS) and cloud computing have become accepted in enterprise computing. In many cases, vendors can implement usage-based pricing in SaaS to better match the business cycles of the users. The philosophy of usage pricing is “you should not have to pay for services that you are not using at the moment”. Blockchains are usage-based because you typically pay for services when you request them. Depending on how fees are structured, they can result in a Net-Zero economic model.

It is reasonable to expect a one-time setup charge for SaaS services, but there is little reason to expect a monthly fee for maintaining an account that is temporarily not in use. Utilities charge a monthly “demand” fee even without usage because they are typically responsible for maintaining physical delivery mechanisms such as pipes, wires, etc. Some SaaS vendors operate expensive systems that are not billed on a usage basis. In these cases, margins are low and costs need to be shared by the entire customer base regardless of activity level.

Advertising in Real Estate

Listings originally were displayed in the windows of agencies or were posted in public spaces such as hardware stores and town squares. Newspapers began running these advertisements and by the 70s, entire sections of the Sunday paper were dedicated to property listings. Professionals could obtain a monthly catalog of listings (affectionately called “the book”) that was used in the office or carried in the trunk of their car.

Online access became available through dial-up in the 80s (I still have my Silent 700) which allowed more timely updates. After the millennium, dialup was replaced with web-based systems which were easier to use and allowed consumers to begin to consume listings, on-demand, from home and the web model is the dominant access method for listings today.

Blockchain provides a new channel to publish listings. The new capability that is driving this channel is the ability of the consumer to provide context to each search. Instead of a “one size fits all” presentation, presentations can be tailored to the needs of the consumer.

Consumer Preference

Today, websites use “preferences” to store this information. The consumer saves their options with the website provider. The blockchain approach allows information to be presented using preferences that are controlled by the consumer. This allows consumers to tailor responses to their special needs.

Evaluating consumer preferences on-the-fly in the blockchain-as-a-channel model is an excellent use of Artificial Intelligence (AI). The topic of AI can quickly devolve into a jargon-laden conversation that requires an advanced education degree to understand.

Addendum

I will continue to post topics like blockchain and AI using business examples because this is how I have been able to participate in the community.