When the real estate industry meets blockchain: improving transaction security and efficiency
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When it comes to business trends that have been popular in recent years, they should be artificial intelligence, blockchain and digital currency. Today, I would like to introduce to my readers the development of blockchain technology applications in the real estate industry.
What is blockchain (blockchain)? According to Wikipedia, blockchain is an intelligent peer-to-peer network that uses a distributed database to identify, disseminate and record information, also known as the Internet of Value. In 2008, Satoshi Nakamoto first proposed the concept of “blockchain” in “Bitcoin White Paper”. In 2009, he founded the Bitcoin Social Network and developed the first segment, which is the so-called “genesis segment”.
Blockchain is an intelligent peer-to-peer network that uses a distributed database to identify, disseminate and record information.
Blockchain is not only an open digital ledger, but its security and diversified development may also have high hopes for the world. For example, Klaus Schwab, founder of the World Economic Forum (WEF), once said that blockchain will drive the fourth industrial revolution following the invention of steam engines, electricity and computers. Andrey Sharov, Vice President of Sberbank of Russia, boldly predicted that banks will disappear within ten years because of blockchain technology!
Simply put, the two major characteristics of blockchain technology are decentralization and the inability to tamper with data. They will become increasingly important in the future and will no longer require the services or matching of intermediaries. If you think it’s too abstract, think of the blockchain as a digital ledger where users can record and browse all transaction information (such as home ownership information, addresses and property rights registrations, etc.). With the popularization of blockchain technology, it will not only subvert the foundation of human transactions for thousands of years, but we are more convinced that blockchain technology will play an important role in fields such as finance, medical care, agriculture, real estate, and even the Internet of Things.
The blockchain is like a digital account book where users can record and browse all transaction information.
Countries around the world are actively developing markets for digital currencies and related technologies and applications. Many countries are also developing applications that integrate blockchain and real estate, with Sweden, Singapore, and Dubai being the most active.
In the summer of 2016, Sweden became the first country in the world to apply blockchain technology to land development. At that time, the consulting company Karios Future, the telecommunications company Telia, and the blockchain technology manufacturer ChromaWay worked together. After the buyer and seller confirmed the transaction, the property deed was put on the blockchain, so that the government, intermediaries, and both parties could transparently and openly track the transaction records of the property.
In April 2017, the UK began to promote the “Digital Street” project, and not surprisingly, blockchain technology was also seen. The country hopes to use blockchain to simplify land registration and purchase-related processes, thereby reducing transaction disputes. Our neighboring country Singapore has also begun to improve its trading platform. Through the deployment of the “Industry Transformation Map (ITM)”, it has shortened the time for real estate transactions and simplified the process of buying and selling houses.
Dubai, located in the Middle East, is also willing to embrace the power of technology to improve traditional industries. They hope to become the world’s leading smart government by 2020. In view of this, the Dubai Land Department announced in early October that it had established a land administration database based on blockchain technology and accelerated the promotion of related applications.
Many countries are developing the integration of blockchain and real estate to shorten transaction times and accelerate the promotion of related applications.
Overall, when the real estate industry encounters blockchain, not only will there be full of business opportunities, but with the help of relevant technologies, people involved in real estate transactions from various countries can also quickly complete transactions, thereby reducing cumbersome administrative procedures. For both parties to the transaction, it is expected to improve security and promote efficiency between buyers and sellers. This is undoubtedly good news that everyone welcomes.
★ Featured image credit: Marc-Olivier Jodoin
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