Think of a situation where you have a property in India but stay in US. You want to rent it out securely without needing to visit India. So you listed it on a secure rental platform powered by blockchain technology. You find a tenant who is pre-verified by the system. You do all the negotiations digitally with tracking of the offers & approvals. And then you sign your agreement digitally from US, and receive the advance payment from tenant in no time. When you are satisfied in all aspects, you share the passcode of your Apartment's digital lock with the tenant.
Does this sound like a Science Fiction movie ?? What if we say that, all of this could be possible in coming days !! Welcome on board to the world of unlimited opportunities with the power of Blockchain.
Real estate sector is one of the most dynamic and globally recognised sectors today. For a rapidly developing country the key thing is urbanisation. It was an old practice for real estate sector to keep key things about a particular property hidden. But in this era of connected world various information about a particular property keep floating in the internet world. But in most case this information seems to be originated from some untrusted source or in some case it may be some paid information listed in various searching platform or a broker website
What ever be the case there is no way to verify whether a information we are getting from the internet is authentic and trustworthy. So it always involves a physical verification and negotiation process between tenant / buyer & landlord / Seller. This problem is much acute in the case of commercial renting and leasing of property because in contrast to residential property, there remains much more critical information which need to be verified and authenticated. So practically it is hard to get on a renting or selling agreement where both the parties are not physically present..
Enter Blockchain to solve the problem.
“Blockchain technology, a digitized, distributed ledger that immutably records and shares information, could enable the real estate industry to address these inefficiencies and inaccuracies.
Let the code speak for itself.”
— Don Tapscott, co-author of Blockchain Revolution
What Can blockchain deliver for the real estate network? In short answer it can provide a global consistent state of information shared among all participants.
· Near real-time : It can enable real time transactions of property between participants.
· Distributed ledger : Through peer-to-peer distributed ledger all can maintain the same information across the globe.
· Trustless Participants : Blockchain technology is based on cryptographic proof, allowing any two parties to transact directly with each other without the need for a trusted third party.
· Irreversibility : Once a transaction took place on blockchain their is no other way to manipulate that transaction.
· Power of Cryptography : All records and transaction are being cryptographically stored in blockchain so there is no way of leaking crucial information.
· Smart Contracts : With smart contract participant can create a digital contract where instead of middlemen some lines of code will maintain the agreement between them.
In a short note by using blockchain technology we can create a decentralized autonomous organisation (DAO) forReal Estate. Currently there are few companies who are working with Blockchain solutions for real estate, REX-Mls (A Decentralized Multiple Listing Service & Real Estate Transaction Application) & Averspace (first real estate platform in Singapore that allows you to buy, rent or sell properties with digital documentation and digital signing of agreements) are some good examples for this type of solution.
In the next blog we'll look into the solutions provided by this two companies. And will try to get more familiar with Blockchain technology.