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Blockchain Entrepreneurship Financial Services Other

You Can Now Trade Airspace Above Your House for Extra Income

In many cities where space is limited and vertical construction is common, the cost of low-altitude airspace can skyrocket. Air rights deals, which involve selling unused development rights from one property owner to another, are typically associated with major developers. However, due to the proximity of buildings, even homeowners, small building owners, and co-op boards can participate in these transactions. Despite their potential profitability, these deals used to be very complex. A US start-up, SkyTrade, aims to change this by building a marketplace for these rights.

We are joined by the SkyTrade’s Co-Founders. CEO Jonathan Dockrell, and CTO Marcin Zduniak, will introduce us to their pioneering platform that promises to democratise the air rights market.

SkyTrade Co-founders: CEO Jonathan Dockrell (left) and CTO Marcin Zduniak (right)
Source: SkyTrade

Real estate air rights and their worth

Espeo Software: Jonathan, what are air rights, and how much are they worth?

Jonathan: Air rights are the right to control and use the airspace above a property. This concept dates back to Roman times when land ownership was considered from “Heaven to Hell.” Today, air rights exist in all jurisdictions, though their attributes and ownership can vary.

In many countries like the US and UK, air rights are vested in the landowner. This means the owner can use, trade, sell, or rent these rights. They can even transfer them to another location to add value elsewhere. The value of air rights can range from 5-20% of the land value, sometimes trading for more than £350 per cubic foot. For example, real estate valued at £10M could see an increase of up to £2M by utilising air rights through SkyTrade. SkyTrade makes this traditionally opaque market accessible and valuable to a wider audience.

Espeo Software: What is SkyTrade?

Jonathan: SkyTrade is an air rights marketplace that enables real estate owners of all sizes to monetise their airspace. We connect air rights owners with airspace users, often commercial drone entities needing permission to operate below 400 feet. Without this permission, drones are trespassing, so they rent airspace through SkyTrade.

Additionally, real estate developers and traders use SkyTrade to buy, transfer, or hold air rights for their current and future value.

SkyTrade’s website, above the fold. Source: SkyTrade

Airspace trading options with SkyTrade

Espeo Software: In which regions is airspace trading currently possible with SkyTrade? Where do you expect it to expand?

Jonathan: Airspace can be traded in regions like the USA, UK, Canada, Australia and Ireland, where decentralised individual landownership is supported by law. In other countries, like Spain, Germany, and Poland, where the legal system is based on civil law, the government typically owns air rights. For these regions, we offer the governments a marketplace for trading their air rights.

Espeo Software: Why would property owners or investors be interested in claiming airspace? Will the adoption of air rights trading generally increase?

Jonathan: Property owners are interested in claiming air rights as the use of them, even to trade without being built into, adds capital value to their real estate holdings. Investors are interested in their returns from real estate growth or, if they are investors in unmanned aerial vehicles (drone companies), their investments can finally scale as the drones have legal permission to fly.

Espeo Software: Do you have plans to expand to other jurisdictions, such as the European Union?

Jonathan:  Yes, we are actively engaging with real estate companies and officials in the EU to monetise air rights and create income for municipalities, their communities and real estate investors. We welcome interest from anyone in the EU.

SkyTrade Airspace Trading with Blockchain

Espeo Software: Could you describe the process of how airspace is traded using blockchain technology? Why is blockchain technology necessary for trading airspace?

Marcin: Air rights are traded on the blockchain through our Auction House contract. This functions similarly to a traditional auction house, where items are listed and investors bid to win. The highest bid secures the auction.

Blockchain technology enables the trade of digital assets, such as air rights and flying/rental permissions. The primary benefits are fair, objective, and transparent price discovery. Furthermore, people have the flexibility to choose their preferred trading venues and price discovery algorithms, not just our Auction House. They can use alternative platforms if they wish, as these are their air-rights assets.

Understanding Smart Contracts with Espeo Software’s Blockchain Expert

We asked our Senior Solutions Consultant, Agnieszka Niedzielska-Hołownia about the technical side of smart contracts, the technology behind auction house contracts built by SkyTrade.

Agnieszka Hołownia-Niedzielska, Senior Solutions Consultant at Espeo Software
Agnieszka Hołownia-Niedzielska, Senior Solutions Consultant at Espeo Software

Espeo Software: What exactly is a smart contract, and how is it different from traditional contracts?

Agnieszka: A smart contract is a computer program that runs on a blockchain. It automates and executes processes transparently and verifiably, eliminating manual intervention. Unlike traditional contracts, it immutably saves every transaction on the network to ensure security and trust. Brilliant, isn’t it?

Espeo Software: Are smart contracts legally binding?

Agnieszka:: Smart contracts can be legally binding, depending on their purpose. For example, purchasing a subscription online is legally binding, while buying real estate typically requires a specific legal procedure. Monetising airspace through blockchain is a legally binding use case.

Espeo Software: Are smart contracts a popular tool?

Agnieszka: Yes, smart contracts are becoming increasingly popular. They enable machine-to-machine communication in smart homes, cars, watches, and UAVs. Automation boosts efficiency, allowing people to focus on non-repetitive tasks, and offers companies a reliable, up-to-date source of truth. These benefits make smart contracts invaluable as the language of blockchain.

Espeo Software: Can you provide examples of common use cases for smart contracts from recent years?

Agnieszka: Smart contracts are vital to blockchain, crypto, and DeFi projects. They facilitate payment reconciliation and international money transfers in projects like Onyx by JP Morgan and Ripple. Serving as a single source of truth, they enable data extraction from the blockchain, as seen in BurstIQ, where they ensure the ownership and secure use of medical data.

In Decentralized Finance (DeFi) apps, smart contracts automatically trade, compare, and validate transactions, often involving multiple tokens, and execute transactions when conditions are met.

Read Agnieszka’s article on how to leverage distributed ledger technology in corporate platforms.

Closing

To learn more about the air rights market visit the SkyTrade Website, explore their platform, and see if you’re eligible to list, buy, or trade your airspace.

*Disclaimer: Espeo Software does not endorse or promote any specific investments, products, or services mentioned in this article. The information provided is for educational and informational purposes only and should not be considered financial, legal, or investment advice. Always conduct your research and consult with a qualified professional before making any financial decisions. Espeo Software is not responsible for any actions taken based on the information provided in this article.

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Entrepreneurship Newsroom

Przemyslaw Koper to lead Espeo Software as CEO

Espeo Software is pleased to announce changes to the company’s leadership.

The current Chief Revenue Officer Przemyslaw Koper will become Chief Executive Officer in September 2023. Dawid Gałat joins the company as the new Head of Human Resources. They will take over from Paweł and Sylwia Rogowicz, who have run the company since it was established in 2008.

Przemyslaw has been heading the Revenue Department for the past year. Before joining Espeo Software, he led business development teams at Knowit, Commerzbank, and Travelex. His YouTube channel BizMentor, which has almost 100,000 views, aims to educate professionals on career development and technology. Przemyslaw enjoys traveling with his partner and playing guitar and soccer outside of work.

Przemyslaw Koper: “I want to express my gratitude to Paweł and Sylwia Rogowicz. Espeo Software has become an established brand in the Finnish IT space and has earned incredible customer loyalty. I look forward to working with the entire #espeocrew to build on this great foundation. I’m confident that together we can effectively position Espeo Software as the best partner for financial technology development. We will continue to invest in growing our technological capabilities and work with our clients to establish state-of-the-art solutions.”

Paweł Rogowicz and Przemyslaw Koper
Paweł Rogowicz and Przemyslaw Koper

Dawid Gałat joins Espeo Software to serve as the new Head of Human Resources. Before arriving at the company, he held directorial positions in human resources and communications at Profitroom and Currency One. Dawid is an expert on communications, management, and human relations with many years of experience in the field. Apart from his professional commitments, he finds joy in an array of activities, such as playing tennis, swimming and cruising along on a bicycle, all of which are also enjoyed by his wife and their two children.

Dawid Gałat: “I am very grateful to Sylwia Rogowicz for ensuring a smooth handover. In her role, she has improved both recruitment and internal processes to enhance Espeo Software’s positioning among potential candidates. I look forward to taking the employee experience to new heights. It is exciting to join the company at a time of rapid evolution in the interconnected IT and financial industries. I await collaborating with Przemyslaw and the entire management team.”

Dawid Gałat and Sylwia Rogowicz
Dawid Gałat and Sylwia Rogowicz

Paweł and Sylwia Rogowicz, the founders, will continue to support the company as board members. During their tenure, Espeo Software has delivered about 150 projects and helped dozens of clients in augmenting their development teams. They have built the company from scratch to 100 coworkers with offices in Poznań, Gdańsk, and Helsinki.

Paweł Rogowicz: “After founding Espeo Software and leading the company as CEO for 15 years, I am extremely proud of what we have achieved and grateful to the entire #espeocrew. It was my goal to ensure a smooth handover to a new CEO and I’m certain that Przemyslaw will bring the company to new heights. I’ve worked with him for the past year. He is a creative leader and visionary entrepreneur. Since joining, he has built a robust revenue strategy, processes, and customer journey. Sylwia and I will be working closely with him, as board members.”

Sylwia Rogowicz: “I would like to thank the entire #espeocrew and our dear customers for their continued trust in our leadership. Espeo Software has grown into the vibrant community of experts that we envisioned when we started the company 15 years ago. We’re determined to work with Przemyslaw and Dawid to expand into new markets and drive innovation in the financial technology space.”

Espeo Software Executive Team
Espeo Software Executive Team
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Blockchain Entrepreneurship Finance Financial Services Other Supply Chain Technology

How to leverage distributed ledger technology in corporate platforms

In the modern-day digital landscape, consortia and corporate platforms face numerous challenges. These include managing complexity, enhancing collaboration, and improving transparency. This article focuses on addressing them using distributed ledger technology (DLT). Power relations, coopetition within consortia, data security, and privacy in decentralized architectures will be the topic of examination.

How to leverage distributed ledger technology in corporate platforms and consortia

Table of contents:

  1. Modern-day application of blockchain
  2. How blockchain can address challenges faced by consortia
  3. Interactions in corporate platforms – a four-phase trajectory
  4. Conditions for a Successful distributed ledger technology Project
  5. Things can go wrong with blockchain
  6. Our distributed ledger technology business case: HLB Global
  7. About this article
  8. About Agnieszka Hołownia-Niedzielska

Modern-day application of blockchain

Distributed Ledger Technology has wide uses. Sectors like settlements and supply chain management continue to leverage it. Logistics use blockchain to track production and delivery processes, prevent food fraud, and verify product origin. It also helps verify transportation conditions, validate expiry dates, and confirm eco-certificates.

How blockchain can address challenges faced by consortia

Operating across companies requires considerations around cost division, compromising needs, and managing relationships without a chain of command. Despite many unknowns that characterize building and organizing consortia, the business case that stakeholders want to work on remains the same. They will be looking for similar benefits. That’s why creating a list of benefits and presenting them to internal stakeholders is important. This shift could have significant implications for all workers. It can lead to increased automation, greater independence from a central unit, and higher accountability. With a more process-oriented approach, organizations can expect better-structured processes, but also better data quality. This could lead to less confusion and more organized cross-company systems.

Ecosystems based on DLT, blockchain, or other decentralized architectures are maturing. More companies now look beyond innovation and publicity. Instead, they focus on tangible business cases. Use cases of these consortia are likely to impact workers not directly involved in software development and tech, such as those in accounting and settlements. By automating repetitive tasks, these technologies allow specialists to focus on expert tasks, reducing mistakes and streamlining processes.

The power within blockchain consortia is distributed differently from that of large centralized platform providers. Blockchain implementation operates independently of the organizational or legal framework. However, its decentralized nature means that each participant owns a full copy of the data, rather than a single central unit that has to be monitored or widely trusted.

Interactions in corporate platforms – a four-phase trajectory

The interaction between various companies involved in such platform projects always has specific characteristics, but it could be streamlined into a four-phase course.

The first phase involves innovators, often CIOs driven by personal interest, who identify a persistent problem. It could be resolved by standardizing the process across companies with blockchain technology.

Later, the initiating company experiencing the issue reaches out to interested parties in other business units. This usually happens after many companies have dealt with the same problem for years.

In the third phase of the process, business owners from one or more companies work together. Occasionally, the tech and legal departments also get involved. Usually, the ones in control of the project consult internally with multiple stakeholders. They then work on a solution acceptable to all businesses.

Finally, the proposed solution is built into a Minimum Viable Product (MVP) or Proof of Concept (PoC) version. It’s then beta-tested, feedback is collected, and the solution gains momentum. Some companies might wish to join only as participants, while the majority prefers to join as nodes to own their copy of data.

Conditions for a Successful distributed ledger technology Project

Maintaining relationships within DLT consortia requires some vital work. Mainly, it’s a key to managing tasks well and organizing things, keeping people on different levels informed. Those managing consortia projects need to consider differences between participants and the number of departments and workers engaged. It’s crucial to understand that processes and roles may differ. As a consequence, the people engaged in the project may change. Depending on the consortium’s participants, the structure of the internal process can also vary.  

Also, although blockchain communication is secure, establishing connections between nodes built in different organizations requires careful consideration of IT policies. Some of them may need adjustments. The team may modify the project’s technical side according to needs. In an ideal scenario, all participants have their node, transforming IT solution consumers into “vendors”.

Gathering feedback regularly is also a success factor. Feedback from early adopters – a group of pilot companies – plays a vital role, especially during usability tests. What’s important to note is that this work isn’t done when the first version of the solution is in operation. Collecting lessons learned after the MVP phase is a method to implement agile adjustments successfully. 

Interested in validating your blockchain project idea? Check out our article:
6 Easy Steps to Verify a Blockchain Project

Things can go wrong with blockchain

However, not all blockchain projects succeed. Some fail because they don’t grow big enough, so they don’t get their momentum. Some people treat consortia projects as internal, resulting in a lack of external communication and adaptability. This creates a restrictive ‘our way is the only way’ mentality. Moreover, implementing change always presents a challenge.

Despite some disappointments, distributed ledger technology consortia and structures keep offering benefits. This could be savings, or utility (paying more but gaining a single, independent source of truth). Developers build these structures in an agile manner, adding new participants and features, and planning for the next steps in the decentralization process. The key is to ensure that end-users actively use these projects; they don’t remain just as ideas hidden in a drawer.

Our distributed ledger technology business case: HLB Global

It’s time to analyze a real-world application, a case study of HLB Global. HLB is a global network of independent advisory and accounting firms. They have independent branches across 157 countries with more than 38 000 professionals, combining local expertise and global capabilities.

Espeo Software created a decentralized system to let members interact with each other more easily. HLB wanted to standardize and clarify its referral processes. They wanted everyone to play by the same rules enforced by the system. With the ability to add new referrals in place via the existing SharePoint interface, it’s now easier for everyone to manage their tasks. To track deal statuses, data is gathered from various sources like project orders, invoices, and payments. We had to build trust into the solution.

We used Hyperledger Fabric, a private blockchain network, as the solution. Users within this network operate in a transparent and secure environment. The system tracks and permanently records every action, ensuring it’s tamper-proof. The permissioned nature of HLF allows only authorized participants to gain access, maintaining the integrity and confidentiality of the blockchain network.

The HLF blockchain network now stores the data. It serves as the one source of truth with immutable data history. We also automated status changes that follow the execution of chain code tasks.

About this article

Espeo Software’s Solutions Consultant, Agnieszka Hołownia-Niedzielska, was invited by Prof. Dr. Ulrich Klüh to share her expertise on a Coopetition in Corporate Platforms project. The Darmstadt Business School conducts the research project, with funding from the Hans Böckler Foundation.

About Agnieszka Hołownia-Niedzielska:

Agnieszka Hołownia-Niedzielska is a Senior Solutions Consultant at Espeo Software. She has over a decade of experience in FinTech and RegTech product development and project management. Having been a business owner herself, she brings unique insights into business and technical analysis across various project sizes. She acquired Blockchain for Business Professional certification.

Categories
Entrepreneurship Software

The future of staff development. Business benefits of developing the staff’s soft skills

Soft skills are becoming increasingly important within the future looking companies around the world. Why is that? In what ways does developing the soft skills of employees benefit the organization? In the article below, I’ll try to answer these questions while giving a detailed insight into soft skills and emotional intelligence.

Finding my calling. How did I become a Chief of Staff

My background is quite unusual for a Chief of Staff. I come from an academic environment with which I have been bound for a few years after my initial studies. During my doctorate, I decided I wanted to gain new experiences and skills. This is when I joined Espeo Software. After around 3 years in the company, my focus pivoted towards people in the organization.

I took up Business Psychology studies at the SWPS university in Poznań during which I could broaden my knowledge in terms of internal communication. Alongside the SWPS studies, I also took a coaching course in IBD Business School Warsaw and graduated from the School of Transactional Analysis in Poznań. I gained a great deal of insight into healthy communication methods as a result of this experience. People usually communicate with each other on a subconscious level and not on a conscious one. As a result, in stressful situations, people usually fall into patterns (by taking on the role of either a parent or a child). During my studies, I learned how to communicate from an adult’s perspective and how to help others do the same.

Communicating efficiently requires letting go of unproductive subconscious patterns. Managers can easily assume the role of parents in a company environment, while employees can easily assume the role of children. Taking this approach leads you out of the professional realm and into the emotional one, which isn’t recommended in a work setting.

After a couple of years at Espeo, I got offered the role of the Chief of Staff. This has been a natural progression for me as I have already been doing more than Office Manager and with my experience and knowledge, I was qualified to take over the internal communication of the organization. Working closely with people is something I have always been passionate about, which is why I enjoy being a liaison between various departments and integrating internal processes. After I took up my current role, I started MBA studies in order to embed my soft skills in the demanding business setting. Since graduating in March this year, I have been applying the knowledge and experience I gained while studying over the last 1,5 years to my daily work.

My work gives me a lot of satisfaction, however, it doesn’t come without its challenges. When it comes to communicating, it is necessary to remember that every employee in a company is unique. As such, the messages that are shared with them must be tailored to their individual needs. Additionally, there are times when I have to stop internal initiatives if they are not supporting the company’s business strategy. All internal actions should have their justification and be embedded in the quarterly company goals. It is only this way that a coherent business development plan can be achieved.

The areas of soft skills development. Why is this topic important?

There are a couple of important areas when it comes to soft skills development, especially in the IT industry. First of all, software house employees very often are points of contact with clients. As a result, each employee has a direct impact on the company image that is communicated to the client. In general, communication while working on software development is crucial. All team members should know how to form their messages in a polite, respectful way. Such messages are categorized as open messages.

Often, however, technical experts form their messages in a closed manner, leaving little room for questions or discussion. If the interlocutor on the client’s side happens to be compliant with such communication, they might feel overwhelmed. Efficient communication is also key within the teams. The structure of software houses requires a great deal of cooperation between different departments. It’s important to adjust the level of a statement according to the person you’re talking to to ensure that everyone is on the same page. Here, showing the employees that their messages can be received differently depending on the recipient is crucial both in internal and external communication.

Secondly, IT requires a high level of problem-solving skills. While developing software, problems occur frequently. Therefore, a problem solving attitude should be cultivated among the employees. Only then can a great digital product be delivered. The ability to organize work efficiently is another soft skill that is required in a modern business (time and material), especially while working with external partners. Since people are not lonely islands, the skill to work with others is also quite major and should be continuously developed in the organization. The reason for this is that teamwork involves not only cooperation on a project but also sharing knowledge, developing competencies and skills between its members, and being able to replace each other. Last but not least, emotional intelligence is a soft skill that is extremely important from a manager’s perspective but is often overlooked.

The ability to empathize with people with whom you work with is crucial in order to develop yourself in the role of a manager. Personally, emotional intelligence is the reason why I am where I am professionally. As with anything, moderation is key – it’s not appropriate to be over-exuberant in the workplace. That being said, empathy is helpful not only in a day-to-day job but also in negotiating, establishing partnerships, or recognizing the intentions of subcontractors and partners.

The future of staff development. Business benefits of developing the staff's soft skills

The business benefits of developing the staff’s soft skills

There are many business objectives for which the companies should focus on developing their staff’s soft skills. In the first place, every employee is a representative of the company in some way. After all, it is the staff’s behavior that demonstrates the company culture while working with clients or external partners. Thus, it is crucial that that behavior be enriched with high soft skills and respect, as well as strong negotiation skills. Only then can the employee be a valuable representative of the brand. In our industry, technical experts usually focus on developing their tech skills. However, because of the value that soft skills bring, any organization should encourage the development especially of the soft competences among its employees.

Developing soft skills plays a vital role in maintaining high company culture and communication flow. It is especially valuable in the IT industry, where the success of the projects depends on effective cooperation between team members. In the end, eliminating communication barriers can help avoid issues that may arise during software production. At Espeo, we happen to work with people who have both extraordinary interpersonal and technical skills. Some of these people became mentors in our latest edition of Espeo Junior Academy. The mentor role required impeccable soft skills as well as vast technical experience.

High interpersonal skills have an impact on the general growth of the business as well. When technical experts have great soft skills, they are more likely to increase the clients’ trust and satisfaction, which leads to the acquisition of new projects or the extension of existing collaborations. The development of soft skills can also lead to reduced employee turnover as the bond between team members is stronger.

The current situation and trends of staff development across different organizations

From my perspective, the focus on staff development can be especially observed in the IT and creative industry. Particularly in software houses such as Espeo or digital agencies where the employee is in the company center and where the HR departments care about the staff’s satisfaction. Currently, a big trend for companies like these is to offer e.g. sponsoring personality tests in addition to organizing other actions to develop the staff’s soft skills.

Those employed by public companies, on the other hand, don’t have access to such commodities – there, the development of soft skills and employee benefits are very often left unconsidered.

So what will the development of soft skills look like in the future? Will more companies see its benefits and decide to invest in it?

The popularity of developing soft skills will continue to grow among future-looking organizations. However, the growth won’t be as significant in companies where the organizational culture is low and where there is not an individual approach towards the employees. The last two years of the employee market showed how important building the compatibility between the organizational culture and its external image is. Applicants were equally concerned about the culture of the company as about the job responsibilities. As a result, companies that failed to deliver what they promised lost a lot of external credibility.

What is more, I predict that in five to ten years the soft skills (such as flexibility, problem solving and sensing the needs of team members and business partners) will be on par with technical skills. Companies that will understand the need to develop those skills will thrive, whereas businesses that won’t, will become less competitive.

In general, companies will put even a greater focus on aligning the cultural fit of candidates before starting the cooperation. Departments such as Human Resources will likely draw more and more from the psychology field to improve the recruitment processes and the day-to-day work. Initiatives like Employee Advocacy will gain more traction within businesses.

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