BLOCKCHAIN FOR REAL ESTATE!
Does it seem to relate anywhere else? But, blockchain technology itself is defined with the examples of the public land ledger and registration process. Many debates are going through on implementing blockchain in real estate. Despite debates, there are successful ongoing projects on the real estate sector with blockchain technology.
Sure, you would have heard about blockchain technology as a similar one to public land ledger where some information is accessible by the public, and others are accessible by officials. But, of course, every industry thrives for the consortium type of blockchain solutions.
Now, let me explain in detail what is a blockchain with the real-life example of the public land ledger and registration, problems in current scenario, blockchain real estate processes, and much more!
The Blockchain Symbolizes a shift in Power From the Center to the Edges of the NetworkWilliam Mougayar
What is blockchain? Regards to real estate!
Blockchain is a distributed ledger of transactions recorded in a chronological order similar to our public landlord ledger. You can connect blockchain to the public landlord ledger available in property registration offices and online portals. If you immensely think, the ownership transactions are approved only by authorized officials and entered as a record in the land ledger.
The process is similar in blockchain technology. The only difference in blockchain technology is the blocks are connected to the hash algorithms of previous and successive blocks to make it a tamper-proof & immutable network. Blockchain is of three types: Public, Private, Consortium.
However, most of the industries thrive for developing consortium blockchain solutions to protect their privacy and provide transparency to the consumers.
Let’s dive deeper into the current disputes in the real estate sector!
Current disputes in the real estate sector!
Lack of transparency
Everybody in this world, try to be lucrative on their own business. Real estate brokers are nowhere distinct from this myth! Intermediaries, brokers and property agents work to make profits from the property ownership transfer.
Most of the time, buyers are not satisfied with the exhibited properties, but intermediaries attract them with futuristic stats and attractive posters. A buyer wants to own the property, whereas the seller needs the appropriate market value of the selling property. Where do these intermediaries pop out in this entire real estate process?
Instead of choosing the appropriate property that suits buyer needs, they are convinced to buy some other properties. Without the intermediaries involving, a transparent real estate ecosystem can be built.
The real estate industry is one of the high capital transaction sectors and is prone to scams in both offline and online modes. As the ownership transfers and documents are available in papers, scammers can easily change the records in morphing. With state-of-the-art technology, photoshop is wiser to reproduce better documents than the original one.
Brokers even showcase the unfit properties into an attractive one and sell them to the buyers. Many land investors are still in the process of finding the nuances in the real estate sector. Hence, this loophole becomes easier for scammers.
Need for real-time ownership data
Widespread real estate sector has no real-time updates on the property owner for the public to verify on backgrounds. The officials have to manually update the details of ownership transfers and the deal prospectus for public verification.
As many foreign investors are interested in native properties, there are high possibilities of scam in this scenario. Many intermediaries show off the sold properties of international owners and try to resell them with forged documents.
If there is a decentralized blockchain real estate platform, the scams mentioned above can be cut-off from this high potential industry.
Using blockchain for real estate sector can cut off the intermediary charges paid by both the buyers and sellers. The P2P transfer of property ownership by verifying the real-time data on the blockchain network can be made possible. Thereby the trading peers can negotiate or neglect the brokerages paid to the middlemen.
Now, let’s analyze the impact of blockchain technology for real estate processes!
Blockchain For real estate process
Here’s how the entire real estate process will be legitimate when blockchain technology is implemented!
Transparent Market Place
In the blockchain real estate market, entire property ownership data will be available on the public blockchain network with real-time updates. Hence, there will be a trustless and transparent marketplace that will be open to the public.
Unique identity verification
In the blockchain real estate network, identity verification of the person can be efficiently completed through authorized agents. Banks, government officials, reputed third-party agencies can enhance the process with blockchain digital identity platform. The blockchain-powered identity verification can avoid duplicate checks of identity and thereby reducing costs to a greater extent.
Irreversible, automated smart contracts
Once the buyer and seller agree with the property deal, they can proceed to develop smart contract agreements for their property transfers. The smart contract protocol comprises of every fundamental part of the deal that is immutable. Hence, smart contract agreements in the blockchain real estate market can pave the way for dispute-free documentation.
Auto repayment options with smart contracts
Depending upon the smart contract protocol, the automatic repayments can be scheduled, if the buyer wishes. Instead of higher interest rates paid to the bank, seller and buyer can mutually agree for their lucrative benefits. The buyer can integrate his salary account or credit card for the deduction of repayments every month. They can also step ahead and pay off the extra principal amount if they wish to pre-close the property repayment.
Blockchain real estate use cases are extensive and are hidden into these processes. If you look deeper, the P2P transactions and lending can be enhanced through automated smart contract protocols in property transfers.
Profits of blockchain real estate network
If you’re witty enough, you would have already figured out the benefits of injecting blockchain technology for real estate processes. Still, let us be on the same page! I will list the significant benefits!
- Public accessibility to real-time property ownership data,
- Cut-off intermediary brokerages & scams,
- Real-time background verification,
- Transparent Cash flow with authorized officials,
- Wide range of properties that suit buyer requirements.
Happenings of blockchain for real estate!
You may just now wonder about the benefits of blockchain technology in the real estate sector. But, many developed countries have already started working on the blockchain real estate solutions. Sweden’s authority of land registration has already dived in and is on the verge of implementing its real-time applications for the industry.
ShelterZoom, Ubiquity, Blocksquare, Deedcoin, CryptoProperties are the other blockchain real estate projects that are lining up to hit our universe! Blockchain can be used for commercial real estate process and the future of entire real estate is with this powerful DLT here!
If you have the idea of revolutionizing the real estate sector with blockchain technology, let’s discuss the ups and downs and make it a hit project with our knowledge!