The blockchain is such an advanced technology which can be used in almost all fields where data recording and mining is needed. The list of industries that can be disrupted by the blockchain technology includes voting, share rides, Banking and Payments, Cyber Security, Supply Chain Management, Networking and the Internet of Things, Forecasting, Insurance, Cloud Storage and the list goes on.
Among all those sectors that can use blockchain for better functioning, one prominent sector is Real Estate. Real estate is such a sector where data recording is taken as the prime consideration. The blockchain technology is making its way to turn the real estate market into a really advanced, faster, transparent and cost-efficient one. Before we understand how blockchain can take real estate a step ahead, let us get an introduction to this technology of future.
A bit on Blockchain Technology
The blockchain is an encrypted digital distributed ledger of any transaction, contracts- that need to be recorded independently. This digital ledger is accessible by hundreds and thousands of computers but no one can change the data without permission. The data saved in a blockchain has multiple shared copies which make hackers almost near to impossible to hack the data. With this fraud resistance feature, the blockchain technology holds the potentiality to revolutionize many more sectors including real estate.
How Blockchain Can Revolutionize the Real Estate Sector
Efficiency in Transaction
Once a data is authenticated and updated in the chain, it can never be disputed, deleted, edited or altered without the knowledge and permission of those who made that record, as well as the wider community. This feature of blockchain has made blockchain a useful tool real estate sector. The data in blockchain can be accessed, albeit with some restriction but definitely cannot be copied. Because of the robustness of this technology, the transactions happen over blockchain are certain to be accurate and efficient in the real estate sector.
Transparency in real estate is an essential element. With the help of blockchain, one can create a central land title database for the entire nation. This database can store historical land title records. The land title records in India are often found fragmented and unclear in the old record books of land register. Challenging the situation, blockchain can help buyers to find the title of land, land disputes, ownership details of the land, number of transactions that have happened on the land parcels etc. This system can reduce time consumption, cost used in digging out the land data and avoid fraudulent land deals. The frauds in property deals are increasing worldwide. Blockchain technology can put an end to those evil practices. It is almost near to alter the data updated in the blockchain which will lead to improve transparency and protect buyers.
Better Terms in Selecting Property
If all the land records are updated in the blockchain, it would be much helpful for potential buyers to find the ideal property. If blockchain is to be implemented, everyone can see each and every detail of any property. Information like land title, property plans submitted to the local municipal corporation, approvals, NOCs from the fire department, environmental ministry, Airports Authority of India, the certificate of commencement of construction, construction agreements, mortgage lender’s report, Occupation Certificate etc. will be easily available in the data recorded in the blockchain. Making all those information handy, the blockchain can help a buyer to make a better selection in the property.
The property buying in India is a process which works really slow. Every step of property buying needs a lot of time in verification of asset, checking documents, the due diligence and so on. Once the blockchain comes into the scene, the process will be really faster as the data will not need to be verified again and again. Getting all the required data handy will lower down the time consumption of time to process the transaction.
Benefits in a Nutshell
- Elimination title fraud in reselling properties
- Lowering transaction costs as minimal involvement of intermediaries like lawyers and brokers are required.
- Elimination of corruption that occurs in government-level
- Fewer chances of lost or stolen property papers as all documents are recorded in the database hence storing physical documents will not be an issue.
- Significant reduction of property disputes
The Future of Real Estate is here
The transaction of real estate is going to become much advanced when blockchain will be implemented to it. The adaptation of blockchain in real estate has already been started by Maharashtra, Telangana, Andhra Pradesh and West Bengal. As the processing is still in progress, we need to wait for some more days to get the benefits of implementing blockchain in real estate.