Blockchain and Real Estate


Blockchain and Real Estate
Quick definition and principle of blockchain:
Blockchain is a technology that allows information to be stored and transmitted in a secure, transparent and decentralized way. It works like a decennial ledger, where each transaction is recorded and verified by a network of users. This network consists of interconnected computers that work together to verify and record each transaction. Each of these transactions is encrypted and linked to the previous transaction, creating a chain of blocks (hence the name blockchain). This makes it very difficult to alter or falsify the data stored in the blockchain, which makes it very secure.
Another advantage is its transparency. As the blockchain is decentralized, all users of the network can see the information stored in the blockchain. This ensures greater trust in transactions, as every user can see all transactions made on the blockchain. The blockchain is used for many applications, including financial transactions, digital identity management, supply chain management, electronic voting systems and many others.

Use of blockchain in real estate:
  • Improved land registry:blockchain can be used to store information about real estate properties in a secure and immutable manner, providing greater transparency and security for real estate transactions. Information stored on the blockchain can include ownership information, mortgages, previous transactions and property rights.

  • Smart contracts for real estate: this type of contract would be applicable to the land register, for example this smart contract system can reread contracts and validate their clauses automatically, making the transfer of property more fluid. Another use of smart contracts would be to automate tasks such as rent payments, lease management and the distribution of charges. It would also be possible to program smart contracts that would refund money in case of hidden defects or disputes.

  • Verification of the history of a property:all the work done, the number of owners, the incidents that took place, all this information could be recorded in the blockchain register and could thus be accessible to investors, buyers, but also tenants, the state or real estate agents.

  • Certification of the condition of real estate: the blockchain can be used to store information about the condition of real estate, including inspections, inventories and redeclarations, thus providing better transparency and risk assessment for potential buyers.

  • Make online estimates easier through better data mining: As this technology can be like a huge database, it can be useful for gathering information essential to an estimate. For example, the price per square meter on a national or local scale, the history of the last sales in a locality, ... Real estate agencies could therefore offer online estimates on their website more qualitative than at present, based on this tool.

  • Giving a secure access to a specific service: by using a token as an identifier, each token being unique, it would allow to have an access control on a platform aiming at storing the information necessary to the real estate transaction. Thus, the real estate agent will also have a token, different from that of the prospect, to access the documents that concern him. These tokens could also be used to give exclusive access to an autonomous visit (visits where prospects access the property alone thanks to a connected lock), or to objects not yet publicly referenced on the agency's website.

  • Improved supply chain management:blockchain can be used to track building materials and supplies used in construction, providing greater transparency and efficiency in real estate supply chain management.

  • In summary, blockchain has the potential to revolutionize real estate by providing greater transparency, security and efficiency in the management of real estate transactions and assets.

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