Blockchain in the real estate market:
Four changes that the real estate market will suffer with blockchain technology:
By doing a real estate transaction you are subject to complete several stages of the process, from brokers to notaries, making the transaction complex and with many fees to be paid. This happens because these intermediaries have information that does not have access to any person, who does not have the knowledge or license allowed to carry out a real estate transaction. In blockchain this happens in a contrary way because your data are public, where any individual can access transactions without any kind of warning or permission from others, as well as make transactions or record any kind of information.
The blockchain will provide properties throughout the world have their own digital address, containing information corresponding to the property such as: housing, financial, legal, physical aspects, transactions already performed. All data related to a respective property will be fully accessible, to all who participate in the blockchain.
The costs with Blockcahin are even lower when it comes to transferring property, because instead of filling a large “paperwork” and moving to several different places, it uses digital titles, which consists of a token, encrypted of safe way, that can be transferred in an agile, easy and without subsequent disorders.
“By offering a 100% incorruptible tool where the sender and recipient of the funds are logged in and where the” digital ownership certificates "are saved, Blockchain would effectively make the forgery of property titles and forgery of one thing from past. The “unique digital certificate of ownership” would be almost impossible to replicate, and would be directly connected to a single property in the system, making the sale or advertisement of properties that you do not possess almost impossible. "- Don Oparah
Bitcoin is a digital currency. Ethereum has its token “Ether”. Unlike the Dollar or the Euro, blockchain coins are not a role that is then represented by software, but rather 100% software since its inception.
Bitcoin has a function called multi-signature. At Bitcoin, you use your private key to approve sending the digital currency to someone else. With multi-signature, you can create a transaction with three private keys, where at least two are required to continue.
Bitcoin can be used to create a programmable warranty. Instead of sending dollars to an owner’s bank account, the renter and the owner create a multi-signature transaction. Each of the agents has a private key, while the third is given to a neutral third person (mediator). For the security deposit to be spent, two of the three people will need to use your key. The funds are locked in escrow-encryption during the lease agreement.
Bitcoin can be shipped instantly, 24 hours a day, 7 days a week. Without waiting for paperwork sent by correspondence or having to deal with referrals, accounting and bank hours for a simple transfer.
By using bitcoin, the real estate guarantee can be made safer, faster and cheaper. Bitcoin is Money 2.0 also because it is resistant to censorship. China is trying to maintain tight control over its currency, the Renminbi. This year, Chinese families represented, for the first time, the largest group of importers of American products.
Bitcoin is not held in bank accounts but in digital wallets stored on your computer or smartphone.
“Blockchain’s protocols like Bitcoin and Ethereum have the ability to perform” Smart Contracts. " This concept started with Nick Szabo. He gave the example of a soft drink machine, which releases the selected product after the correct value deposit. The goal of a smart contract is to reduce the human need to process and authorize an agreement. A software automates and auto-executes an action when certain conditions are met. How could a smart contract be used in a real estate contract?
Using a smart contract, however, prevents one party from performing combined while the other party refuses or fails to comply.
Structuring this action as a smart contract ensures that the transfer occurs as soon as funds are received, and results in a publicly available record for verification. Because the contract is executed automatically based on the rules predetermined and accepted by the parties to the contract, there is a lower risk of fraud, and therefore no need for external measures to force the execution of what was agreed upon. Therefore, no specific action would be required to compel the transfer of the security after payment because the currency representing the security is automatically transferred and the transfer is automatically posted on Blockchain. " - Drew Hinkes