Blockchain can create an ideal place where you do not need to look for any intermediary to sell the house. Blockchain eliminates untrustworthy people in purchasing a piece of land. All you need to do is to present all necessary information and you,re linked to potential sellers and buyers directly. It creates a decentralized database that contains information of all available properties across the world that can adapt into a public list of what is owned and who the owner is. Blockchain can improve the way we record, transfer and manage real estate.
There three main properties of blockchain are:
- Decentralization: all the data that is stored inside a blockchain is not owned by one single entity.
- Transparency: all data stored inside the blockchain can be seen by everyone who is part of the network. Every piece of data can be traced back to its very origin.
- Immutable: all the data inside the blockchain cannot be tampered with because of cryptographic hash functions.
Blockchain use cases in governments
- Title deed:
All title deeds could be stored on the blockchain. Anyone will be able to access the data easily hence they will not need anyone’s permission to access the information because they will get it digitally. Owners of land will be sure that their title deeds are secure because blockchain technology will ensure the security of the title deeds of the owners.This will completely end land grabbing since the title deeds will be verified by the system to ensure their legitimacy.
- Smart contracts:
Automated contracts. Self executing with specific instructions written in its code.When the seller wants to sell their property, they can easily put all the details of the property on the blockchain hence information will be available to the buyer/interested party. The seller will have access to all necessary information of the buyers hence there is a quick exchange of data, therefore transactions can be done with more ease and with less time and friction. In the leasehold/rental markets when the tenant has to vacate the property and asks for a refund, the blockchain can automatically sort the shares of both the tenant and property owner
Benefits of smart contracts
It will cut off all middlemen brokers, banks and lawyers.
Speed up real estate transactions by reducing the amount of bureaucracy.
Smart contracts can protect owners from property fraud. It is possible to link digital ownership of your property, documents and contracts directly to the blockchain hence tamper proof.
Digital currency:No need to wait for the cheque to clear when a transaction is completed.
Exact amount is moved from buyer to seller.
No middlemen hence you don’t have to pay any intermediary.
Each user will have a unique identification number on the blockchain which can be shared securely.
Use of digital currencies reduces chances of theft and fraud.
Cross- border transactions:
Blockchain enhances better geographical freedom therefore many expats can be able to apply for rentals and buy properties outside their home countries since transactions can be done seamlessly from anywhere in the world.