Real estate x blockchain cases and adaptation areas In the real estate industry, use cases of blockchain utilization have been increasing in recent years. For example, in 2017, real estate in Ukraine was traded on blockchains, and more recently, real estate valued at 800 million yen was traded in Fr […]
Real estate x blockchain cases and adaptation areas
In the real estate industry, use cases of blockchain utilization have been increasing in recent years.
For example, in 2017, real estate in Ukraine was traded on blockchains, and more recently, real estate valued at 800 million yen was traded in France.
With the increasing use of blockchains in various industries, how are they being used in the real estate sector?
Block-Chain Adaptations in the Real Estate Industry
Tokenize real estate
Security tokens that digitize securities have given new impetus to real estate investment. By issuing tokens that support the value of the property and making them tradable, you can divide the rights of the property.
sharing of real estate information
Consortium-type blockchains are said to be suitable for building businesses involving multiple companies and organizations, and the management of land and properties is a typical example.
Even if a consortium is formed with a small number of companies, the advantages of using a blockchain are not great, but the more the number of consortia increases, the more tamper resistant it becomes and the more valuable it becomes.
Management of land and properties
In some countries, it is possible to use services that aggregate real estate information, but it is not uncommon for officials belonging to a country to commit fraud.
In Brazil, for example, there are many cases of fraud in land management, and high security services are required.
A company called Ubitquity has partnered with the Brazilian registry to develop a more secure property ownership service by managing property ownership through a blockchain.
automatic execution of contracts
The real estate contract process is not simple and requires many contracts. It takes time to understand each contract, and you have to follow a complicated procedure, even if each country has different standards.
Smart contracts can be used to automate these contract transactions and significantly reduce the time involved in contract work.
Challenges in applying blockchains
It seems that blockchains are suitable for the real estate industry, but since the management of land and buildings involves the existence of a country, it is necessary to clear the hurdle in terms of “law”.
This isn’t limited to the real estate industry, but every time a company does business in a blockchain, it needs to comply with the law. In some regions, such as New York State in the United States, laws are being developed to address specific industries and blockchain application areas. However, I still have a feeling that the development of laws, including those in Japan, is still going on.
In the case of the public block chain, it has the aspect of being opposed to the country from the viewpoint of decentralization. As we have seen in the Libra case, the future will change greatly depending on how the country responds.
The application area of blockchain is gradually expanding.