Blockchain technology, in general, is thought of as a perfect solution when it comes to transparency and trust-less system. One of the best uses of blockchain can be to allow for the democratization of real estate properties. It is sought to open up the gates for potential investors from across the globe without worrying about the factors like cost of sightseeing, liquidity, or authenticity. It will increase the real-life utility of the public in all.
There is a huge market value and demand of the real estate industry. One study shows it could save over €100 million of each Swedish taxpayer eliminating paperwork, fraud, and faster transactions. We have seen virtual assets in the form of land as NFTs in recent times but is it possible to launch a real-life valued real estate on the blockchain?
No one can really predict how long it will take for the blockchain to be dominant in the real estate industry, however, Ragnar Lifthrasir, Founder of Velox.RE and the IBREA (International Blockchain Real Estate Association) believe it will be much quicker than most people imagine “Like any emerging technology, blockchain will reach mainstream adoption when entrepreneurs create secure, easy-to-use applications that solve a problem. Real estate owners and businesses who adopt blockchain earlier will experience the biggest benefit and will set themselves apart as leaders for the next revolution in the property industry.” said Lifthrasir.
Challenges
There are some big questions to implement real estate on the blockchain.
Of course, we require authenticity but who shall provide it?
How can blockchain stored data be implemented in the real world?
One more problem besides it faced in real life is adding the stakeholder is a tedious process. One generally does not have a small percentage ownership share of land i.e. no. of stakeholders are limited and hold a fair amount of ownership share. All in all if you want to own 1% of a foreign land, it is not possible easily.
Solution
dNFT solves the problems for the current scenarios theoretically very well. Before reading this, we would recommend you to read the previous articles on dNFT and have an in-depth understanding of the concepts of dNFT here. So let’s get started!
dNFT provides the one market place for all such real life assets. For real estate, the highlights are:
- To ensure the authenticity of the land, validators are present. dNFT represents each unique land as NFT and in order to register NFT on the platform, it requires the acceptance of validators (here they are the land authorizers). Thus, verified land records are only present on the platform.
- dNFT allows fractional ownership of NFT. Hence, after validation of NFT, one can issue it to stakeholders. All the shared owners of land can now list for sale or allow a bidding mechanism as and when required. Hence, if you own 5% of land, you can bid or sell (at some fixed price) say your 1% to anyone.
- Since being on the blockchain there is no liquidity problem and you can cash in your amount quickly without looking up for third parties to sell or buy.
- Apart from logging every data on the blockchain, there is a digitally signed copy by the initial seller about the authenticity of ownership of it that can act as proof of guarantee and legal binding.
So, as the concluding statement, we can say that it is the need of the time to have real estate realised on blockchain. QuillHash team is working on dNFT standard that could be of great value to the real estate market.
At QuillHash, we understand the Potential of Blockchain and have a good team of developers who can develop any blockchain applications like Smart Contracts, dApps,Smart Coins, DeFi, DEX on the any Blockchain Platform like Ethereum, EOS and Hyperledger.
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