News

Real estate bitcoins are here: this is how blockchain will transform real estate

By Silvia Castro Betancourt 0 Comments NEWS, News

The cryptocurrencies, with bitcoin in the lead, have hoarded large spaces in the media in recent months. There are already more than 1,400 digital currencies and the number keeps growing, and every day appear new ICOs (Initial Coin Offering) that announce the creation of new digital currency.

What is an ICO?

An ICO is a collective financing platform through which a project is paid and supported in exchange for 'tokens'; that is, a chip or digital currency. When all the chips are sold, they start trading in the main cryptocurrency markets and develop the function for which they were created.

Each virtual currency can have a single function: there are some that only serve for videogame payments or to buy marijuana. The possibilities offered by the 'blockchain' (chain of blocks) are almost endless. There is even a virtual currency, called Jesuscoin, which promises to save everyone who possesses it. We present you some of your managers.

With this range of opportunities, all sectors can benefit from this technology that, according to many experts, will revolutionize the world as the Internet did in its day. But what is the blockchain? In short, it is an Internet-based technology that allows you to send things from one computer to another.

The advantages for the brick

Among the activities that can benefit most from this technology is the real estate and not only by the possibility of buying houses with bitcoins, as has been commented so much lately.

"Real estate executives are discovering that blockchain-based smart contracts can play a much more important role in their industry. The chain of blocks can transform the central operations, property transactions, purchases, financing and rents," says the Deloitte consultancy.

Although if you analyze the characteristics of this technology you can find more advantages, we summarize the three key aspects in which the blockchain can improve the real estate sector.

1. Property details

Mainly the 'blockchain' is a technology that stands out as a database and processes.

Currently, each real estate transaction goes through the Multiple Listing Service (MLS). The information is decentralized and restricted, which makes it difficult for people who are not professionals in the sector. In addition, it is usually outdated, making it difficult for the agent to make comparisons and detect trends.

However, the 'blockchain' can serve to overcome these barriers. By providing a way to share data in a secure manner, this technology makes possible a shared database, which provides real-time access to property information directly from the source and allows a more comprehensive view.

2. Title Records

Title records are another decentralized and outdated aspect of the property purchase process. And is that the information of the properties is still stored locally and is outside the network.

With the 'blockchain', when someone buys a property, they receive a digital token and traditional writing. The attached documentation of the token transfer is used as proof of ownership. In the future, tokens could become the standard formula and displace traditional documents completely.

The 'blockchain' can provide a central database of titles to store securely and instantly access historical records. This allows to expedite the transfer of certificates in property sales.

3. Transactions

The efficiency and security of transactions will be greatly improved with this technology. The 'blockchain' does not require that there is trust between two parties to conduct business. Thanks to cryptography, each user has a unique identity in the chain of blocks, which means that consumer financial information can be shared securely with third parties during transactions. A person can send the agreed amount to another who will not get anything until the transaction is completed.

This extra layer of security offered by the blockchain streamlines the transaction management process. For example, if the seller and the buyer are in the same place or not, the financing of the property is accelerated by the existence of a centralized financial record for each party.

This technology improves the real estate ecosystem by allowing people to share data and money more safely and efficiently. In addition, it makes the information more accessible, shortens the process and reduces the risk of fraud and theft.

Given these perspectives, many cryptocurrencies have emerged that seek to use the blockchain to transform the real estate sector. We review some with the most interesting proposals:

ATLANT

ATLANT tackles two of the most common problems in the real estate sector with its decentralized blockchain platform:

Tokenized Properties: List of real estate 'tokens' that represent individual asset shares and their negotiation with liquidity in a transparent and orderly market with price discovery.

P2P global revenues: Significant reduction of commissions for both the tenant and the lessor and the minimum possibility of false reviews and ratings, which abound in existing centralized services such as Airbnb or Booking.

REAL ESTATE REVOLUTION (REX)

REX a decentralized global service of real estate listings that work with the 'blockchain' technology of ethereum, one of the most famous cryptocurrencies on the market. These are its objectives:

  • To be able to look for any property in the world.
  • Provide universal access to property information and streamline the transaction process.
  • Build a global service of multiple listings, creating a data layer accessible to all. The database will minimize listing fees and maximize the exposure of the list.
  • Create "smart" sales and lease contracts. This will save time, communication and administrative costs.
  • Develop an architecture to create 'tokenized' contracts with an exchange platform in which the 'tokens' of the properties can be exchanged.
  • Connect to suppliers, buyers and agents through a free fast connection service.
  • People will be paid in REX tokens to list available properties and to be active on the platform.
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.

Join us in Miami from the 20th to the 22nd of June for the Global Online Marketplaces Summit. Our summit theme is INNOVATION and we’ll hear from Global Leaders who are creating the Online Marketplaces of Tomorrow.

Leave a comment

Your email address will not be published.