Blockchain in Real Estate - An Overview
Ever since the world realized the benefits of cutting edge solutions, the tech leaders started addressing the issues with the technologies. Blockchain is one such technology that has disclosed the elements of transparency in business. The emerging economies like the countries from South Asia have started making their impressions with this high-end technology. Though blockchain has significant impacts on various verticles, the column escorts the revolution of blockchain in Real Estate India.
The biggest monetary asset in the world is real-estate, and hence the risk associated in this field is also high. Humans, lack of knowledge, non-transparent process, forgeries are some of the major risk factors associated with real-estate. For fronting the risk in real estate for years, now all the Investors, Advisors, Legal Partners find blockchain to be the safest & securable operating platform. To a greater extent, the blockchain support cryptocurrency has reduced the unpleasant real-estate experience among the buyers and sellers. Not only blockchain but also Artificial Intelligence, the Internet of Things, and Data Analytics have wide importance in the real-estate sectors.
The simple working of blockchain can be described as the series of computers tracking the records of events or transactions in the ledger.
Let us dig deep into the benefits of blockchain in real estate.
The wide benefits fall under these categories, Monetary, Transparency, Middle Man Elimination, Smart Contract. More on the verdicts,
- The data are stored in blocks that are mutually linked, help in eradicating the middlemen.
- The distributed creation of blockchain proposes an incorruptible ledger system that is unhackable.
- Using Ethereum smart contracts we can eliminate human involvement in agreement verification in a more transparent manner.
1. Smart Contracts
One of the benefits of blockchain in real estate is Smart Contracts. Smart Contract is a set of a computer program that gets executed automatically when the framed conditions are met. Adopting smart contracts reduces the conflicts of the transaction and makes the entire process a transparent one. Real-Estate gets benefitted in a wider note, in an environment where even the normal basic transaction has become a tedious process having blockchain technology has given relief to the sector to a larger extend.
It is evident from the statistic of the world economy that 90% of the property has been purchased with home loans, only a few people avail the property without any loan and mortgage. Everyone is aware of the deadly procedures of taking a loan. the long dragging time drains the energy of the individual wishing for owning a property. Thereby this tedious process gets simplified by the smart contract offered by blockchain technology.
Smart Contract monitors the entire transaction, it cannot be edited/deleted as it permanently stores in Blockchain.
Also, the developed Digital ID for the property by smart contract allows the transfer of ownership much easier & faster.
Note: Developing a smart contract is not a small undertaking, thus choosing the best Blockchain Developer crew can do miracles & satisfies you with the outcomes.
2. Eliminate MiddleMen
Blockchain in real estate has a major advantage associated with cost-saving. Real-Estate is all about middlemen interventions such as agents, notaries, and brokers, they are the bunch of people involved in the process. They play a vital role in finalizing the right deal between both parties and for this, they charge a higher amount. This covering part of the brokerage can be eliminated by using blockchain. This can be achieved by the use of cryptocurrency like Bitcoin & Ethereum for both buying or selling of the property.
Hereby blockchain has helped to cut down the intermediaries' interventions and also reduced the 30% cost spending.
By owning the immutable record of property ownership and maintaining the hindrance and conveyance, the information provided by blockchain and gained a high level of trustworthiness. The digital ID given to all the individual property holds the entire information related to the asset.
Pieces of information in the Digital IDs
Financial Information: Leases, Taxes
Also, the high confidential information can be encrypted in a way it is only accessible by the property owner. Blockchain in Real Estate is all about being transparent & yielding trustworthiness.
4. Frauds Reduction
Every day we come across new cases in newspapers and many are regarding the false practices in real-estate. People adopt illegal practices to trap the property. There are worst practices of producing fake property documents and claiming the frauds as the owner of the property. Frauds try to find out many ways to produce forged documents and cheat people easily.
Since, in blockchain, all the information's like proofs of ownership, exchange, and transaction are transparent without the involvement of a middle man. The entry of blockchain has given relief to many genuine property dealers and buyers,
The blockchain has replaced all the paperwork with digital documents. All the required pieces of information are uploaded to the Blockchain network, which stands as the proof for the property owner.
Disadvantages of Blockchain In Real Estate
The nodes which are used to maintain the accords in the blockchain is less effective.
The blockchain technology is new we still have a long journey to mainstream adoption. Compared to traditional approaches one needs to have the basic technical expertise before getting into it.
Also, there are chances of human error while computing the Blockchain Database henceforth more time and energy need to be invested to obtain a high level of trustworthiness each time.
The benefits of all technologies relay on the way of implementation. While applying the benefits of blockchain one needs to look into the drawbacks as well. The blockchain which is fueling lots of industries has a wide engagement in real-estate as well. The technology has now given relief to all the property buyers and sellers, now they don't need to worry about the fake proclamation.
There is no middle man involvement and things are getting better with digitalization, all these benefits have earned the trustworthiness.
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Also, don't forget to check our article on Blockchain Future Trends 👉 here