Although blockchain in real estate is still a relatively new topic, there are more and more applications for it every day. We conducted extensive study and identified a number of industries where a blockchain development company and its services has unmistakably demonstrated its efficacy, and the demand for these blockchain real estate goods is extremely high.
Let's get to know them by getting closer!
Amazing Blockchain Real Estate Use Cases
Blockchain Real Estate Smart Contracts
The dangers of investing in real estate shouldn't be taken lightly. Yes, there is no guarantee that money invested will return when a property is sold or rented. When you invest money in a building project, one of the most frequent "scam" techniques in real estate is when the work never gets started and the con artists vanish with your money.
Smart contracts, on the other hand, are intended to "bring down" these frauds. You specify an agreement's conditions in a smart contract before you enter into it, and they cannot be changed later. The smart contract automatically initiates the required actions (those that you also initially defined in it in the "if X then Y"-like manner) once the conditions are satisfied. These activities cannot be undone, and no participant to the agreement has any influence over them.
Smart contracts may basically set up the procedure so that shareholders could receive payouts automatically whenever the asset starts bringing in ROI, which ensures that real estate investments are trustworthy.
Instead, smart contracts may help to increase the number of investors in real estate who are not restricted by their means. In other words, a single asset can be divided among several investors, allowing for relatively small real estate investments.
Startups with blockchain real estate systems that provide options for more effective investing include Republic, VairT, and RealT. In a nutshell, a user must go to a website, pick an asset they want to invest in, register there, and buy tokens to represent their investment.
Also Read Here: How Blockchain Is An Enabling Framework For Travel Industry
Property Management
At least a few companies in the sector, including ManageGo, already take advantage of blockchain's potential for real estate management. In other words, routine tasks like paying rent, maintaining a home, checking a person's credit history, and more become more open.
Tenants can file maintenance tickets through the ManageGo app or by email, which is the most frequent case in the app. In turn, management can respond to them or draft work orders to give to the accountable customer service representatives. When a certain category or building is associated with it and the ticket is addressed to the appropriate individual, the assigning process occurs automatically. All requests from tenants are documented and stored forever on the blockchain, which serves as a register and storage.
Real Estate Tokenization
Smart contracts enable securing the associated platform's transactions linked to the tokens that are utilized for those transactions. This concept is realized by businesses like PropertyClub, SMARTRealty, SafeWire, and others through their own marketplace for property trading and rental utilizing smart contracts.
By expressing real estate assets as tokens and employing blockchain technology, the platform enables tokenization of real estate assets.
By cutting out middlemen (banks and brokers) and decreasing transaction costs, it gives users direct access to investments (the investor can make all transactions single-handedly without needing to pay broker fees).
House Sharing
Might it even be conceivable that a home-sharing network like Airbnb could be created with the aid of blockchain? It may be accurate given the possibilities of blockchain, but tenants will have to pay real estate rent in cryptocurrency rather than fiat money.
An effective illustration of such a system is the Dtravel platform. Users can rent apartments directly from their owners using this "marketplace" option, but they will be charged a fee from each transaction they complete on Dtravel. The platform's creators also portray it as a decentralised community of homeowners, enabling the latter to make money by funding the growth of their firm.
Property Construction
As we previously stated, smart contracts can guarantee automated adherence to agreements, so you might no longer have to worry about contract violations. This issue ought to be particularly relevant to huge construction projects, which typically lack openness, particularly when it comes to supply chain management and purchasing. There, blockchain could give each resource unit immutable, irreplaceable tokens so that they could be easily tracked. Project managers could track its development in real-time and notify stakeholders.
And it has already occurred. Building smart contracts with suppliers and contractors and reliably monitoring payments are both possible with BuildSort, a blockchain-based real estate solution for construction management. Additionally, it gathers information from all the sources accessible to give 3D visualizations of the property under construction and real-time updates on a construction project.
Stacking Up
Most notably, among the many advantages blockchain offers real estate, it helps to reduce costs, eliminate human paperwork, and prevent fraud in transactions (or at least makes it tougher). But because blockchain is so complicated, creating a blockchain real estate solution is not a simple task.
