It is difficult to identify a sector that has not been affected by blockchain given the disruption of financial services technology and subsequent widespread distribution across industries. From payments to stocks to venture capital firms to the food supply business, blockchain is everywhere. The real estate sector is also affected by it. This is how:
Record keeping
According to Sristhi Assudani, a blockchain manager at SettleMint, a blockchain platform, blockchain technology can provide property or real estate management through unchanging records and controllable transaction history for land registration and transfers. “The technology can also be utilized to provide efficiency in property management through the use of smart contracts,” she says.
However, Srinivas Mahankali, business manager at SecureKloud Technologies, a blockchain company, says that there are currently a few regulatory and custodial challenges in implementing blockchain real estate token. “If and when it is implemented, it can streamline and accelerate the buying process enormously, and enjoy the benefits and economic benefits of owning real estate worldwide in fractions,” he says.
He adds that blockchain technology and distributed ledger technologies can offer security and privacy to participants.
Fractional ownership
“Fractional ownership helps small retail investors own some of their dream properties,” said Kamlesh Nagware, chief technology officer at Snapper Future Tech, a global blockchain development company.
It will create a new business model for owning some properties that can be traded using blockchain-based tokens, experts say.
Certification
Another use case that blockchain experts believe may be useful in the growth of the real estate sector is the issuance of No Objection Certificate (NOC) and other certificates of conformity, which can be registered through blockchain technology. This will automatically give confidence and openness.
“Blockchain and smart contracts can potentially transform paper-driven and offline commercial real estate transactions such as sales, leasing, financing, etc. Distributed general ledger technology has wider application in smart urban ecosystems such as smart parking and enables smarter decision-making in city administration by offering real-time insights,” said Sharat Chandra. research and analysis, EarthID, a blockchain company.
Platforms and marketplace for traders
A report from the global community of blockchain leaders Enterprise Ethereum Alliance, called Real Estate Use Cases for Blockchain Technology, released in 2019, said that asset management investors are constantly looking for ways to increase or preserve liquidity options so they can improve positions and manage risk .
“A pension fund, for example, may own several large commercial buildings in one city, but may expand to another city either as part of a diversification or portfolio expansion strategy. However, they may not have a desire to buy an entire building. Or “Instead, they may want to buy a lesser-owned part of a property,” the report said.
Blockchain can help tokenize real estate and exchanges as cryptocurrencies, thanks to the inclusion of smart contracts in blockchain platforms. “Blockchain technology is disrupting the real estate sector and creating innovative, new business models. First, real estate tokenization creates alternative ways of financing projects, while enabling the transfer of assets in a transparent and untrustworthy manner,” says Assudani.
