We focus on solving difficulties in Real Estate market by using Blockchain technology
Trust is handled by lawyers, brokers and insurance
Any example in Real Estate where trust is required (such as property ownership, property management and more) is handled via paperwork with qualified professionals, which costs the owner both time and money. This process is mostly offline, paper-driven, slow, and expensive. It also opens the possibility for errors and fraud.
What can blockchain technology offer?
Because of its trustless nature, blockchain can eliminate the need for a third party. The verification and handling of ownership could all be done digitally, which would be efficient, quick, and inexpensive. It also eliminates the possibility of errors and fraud due to the persistence of original data in the system.
Real estate databases are fragmented
This problem makes searching for the right property inefficient, because you need to visit a lot of third-party property listings, where available properties are scattered. Every database has its own set of evaluations, which hinders comparing of properties in different databases. There are also added costs because some databases are not free to browse.
What can blockchain technology offer?
Blockchain could unify various real estate databases into one single ledger, which would be stored in nodes throughout the network. This makes properties easily available for everyone, with assurance of always seeing the same information about them. Additionally, blockchain would provide secure storage for sensitive property information.
Financing and Transferring of capital
When property is financed through a mortgage or when international transactions are required, there is a need for extensive documentation and involvement of various intermediaries. Additionally, mortgages take time to approve.
What can blockchain technology offer?
This process could be greatly simplified and made more transparent by using verifiable digital identities for properties on the blockchain network. They could allow a reduction of work and time needed to finish mortgage approval process. Financing could be also done completely with blockchain, allowing for borrower and lender entities. These entities, after digital verification process, would enter a contract (token loan) without the need of a third party and paperwork. For a lender, proof of finances would be made while buying tokens, so actual contract will be near instant, same as the purchase of property by the borrower.
Investing into Real Estate
Real estate investing has been always available only to parties with large sums of capital, especially when it comes to large housing projects or commercial properties. This capital entry barrier prevents ordinary people from having benefits of property value appreciations. Additionally, investing often involves costly intermediaries such as fund managers, further raising the barrier.
What can blockchain technology offer?
Thanks to blockchain technology, investing opportunities could be divided into smaller chunks via tokenization. Property ownership would be divided into „micro-shares “, allowing investors to own just tiny size of property. There would be no need for intermediary, and all of the financial data would be available to all „micro-share“holders, removing the possibility of fraud or inadequate profit sharing.