“Cryptography shifts the balance of power from those with a monopoly on violence to those who comprehend mathematics and security design.”
– Jacob Appelbaum (activist and core member of the Tor project)
As quoted by Jacob Appelbaum, the activist and core member of the Tor project, the power of blockchain is evident to every person who knows what blockchain is and how it functions. Blockchain for real estate is sure to create a significant impact on how the whole industry operates.
Real estate is not as complicated as the supply chain and logistics industries. Yet, it does have its own complications and shortcomings. In this blog, I will walk you through the two major challenges faced by the real estate industry and how blockchain is set to give simple yet easy solutions.
Challenge No. 1 – Lack of Transparency
- With a lot of intermediaries between the start and finish points, it is easy for them to manipulate the data on money transactions, and other paper procedures.
- With no other source to verify the information given by the people who carry out the tasks we go by their words and tend to pay more than the actual amount.
- To bring the transparency that is expected, we need a sturdy base that cannot be altered or manipulated by anyone. One such solution can be given only by blockchain.
- The blockchain in real estate industry is that every data has to be stored on the hyper-ledger. Any data stored in it can never be deleted or changed by anyone.
- Also, the information is visible to anyone who has access. Hence there is high transparency across multiple stages of the process.
Challenge No. 2 – Globalization & Money Transfer
- Real estate gives huge returns. This is a known truth. Yet not everyone can invest alike. Investing in the native lands by itself is a tedious and risky task. When that is the case, it is highly difficult for people to invest in foreign lands.
- Also, it requires the investor to visit the property several times and involves too many go-between for paper works. Besides that, the investor has to gain complete knowledge about the land and decide carefully.
- Keeping natural calamities in mind, there is no guarantee that the investor would gain from the property in the next five or ten years. So, it is still a risk to pay too much than the real value of the land.
- The blockchain solution for this type of challenge is to have all the data stored on the blocks. This way, the history of the property gets recorded, and anyone who wants to buy can check the details with no hassles.
- Since there are smart contracts, anyone can buy properties anywhere around the world without having to meet the concerned party in person. The payments can be carried out in cryptos too.
- Like we all know, blockchain has the ultimate solution for all types of problems in any industry. The wise know it, the wiser implement it.