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Real estate is one of
the high-yielding industries when spoken about investments. Having said that,
it has huge chaotic and unorganized procedures. It is not easy to bring
everything on the right track overnight. However, everything can be brought to
normalcy and under proper order if Blockchain is implemented.
When speaking about
Blockchain and the smart contracts, I need to be sure that you understand its
basics. So, here you go.
What is Blockchain?
Now let's think of
using google spreadsheet. The sheets are made up of rows and columns. Every row
and every column can be broken down to cells. Now the information we enter is
stored in the individual cells. The whole sheet is shared in a group, where
every member holds a copy.
Now let's switch to
Blockchain. Here all the information is stored in the blocks (cells). These
blocks as a whole (sheets) are shared among the nodes (group). So, every node
has a copy of the information shared so far. It is tamper-proof and can never
be manipulated.
What are the attributes
of Blockchain?
Immutability
Anything recorded on
the Blockchain is immutable and can not be edited at any cost. Not even by the
admin who recorded, neither by the nodes that verify the transactions.
Consensus
For a transaction to
be considered valid, all the nodes have to agree with it. If not, the
transaction becomes invalid. This way, the block gains more trust, and invalid
transfers are avoided.
Peer-to-peer
Blockchain allows
peer-to-peer communication, transaction, and a lot more. Third-party
involvement is entirely null, and the whole process becomes a lot simple and
easy.
What are the blockchain solutions for real estate?
Real estate industry is in many ways unorganized, chaotic, and
opaque. Blockchain is the mandatory solution one would need to keep everything
on track. The numerous irreplaceable attributes of Blockchain make it the best
solution for this particular industry.
Here is the list of
challenges that the real estate industry faces and the respective blockchain solutions.
- Transparency
The involvement of
intermediaries makes the process less transparent and more complicated. The
main reason is the intermediaries planning to mint extra cash when negotiating
between the parties. When needs and the negotiations are carried out on the
blockchain platform, the process is simple, immutable, and transparent.
- Cross-border transactions
Charges levied for
transactions across the borders is huge. Also, it is time-consuming. It
requires both the parties to add the account and then conduct the transfer. In
Blockchain, the two parties only have to match the keys, and then the
transactions take place.
- Finality
Of the entire
transactions that take place, to know who owns what, there is only one place to
go -- the ledger. Any details can be taken from the ledger. Also, anything once
registered is there to stay. This attribute of the Blockchain comes handy for
the real estate industry when recording land titles.
I hope you understood
why Blockchain is a must when it comes to organizing the real estate industry.
For more details on this topic, keep watching this space.
