The Benefits of Blockchain in Addressing Real Estate Issues: An Analysis
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Themes
Blockchain, Real Estate, Estate, Transactions, Notarization, Smart Contracts, Digital Signatures, Rental Contracts, Building Performance, Maintenance, Technological Disruption, Traditional Models, Decentralized Ledger, Distributed Database, Economic Transactions, Programmable Ledger, Immutable Records, Transparency, Security, Efficiency
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Abstract
This document provides an in-depth analysis of the benefits of blockchain in addressing real estate issues, including the comparison of classic real estate transactions with blockchain-based transactions, the role of blockchain in notarization, and the future of blockchain in the real estate sector. The analysis also explores the technological disruption challenges traditional models face and the potential of blockchain in digitally signing rental contracts and measuring building performance and maintenance.
Extract
[...] According to Spielman, the blockchain is the future of real estate management. It is a system that allows for record-keeping but especially offers immediate benefits compared to the current registration system, and these benefits become increasingly interesting as blockchain technology gains adoption. Velox.RE is a vast real estate transaction platform built on the Bitcoin blockchain. Velox conducted a pilot project in consultation with the CCRD, in Illinois, for recording deeds on the blockchain. The pilot project is completed. Although the blockchain can make transactions simpler, more secure, more precise, and easier to understand, their acceptance presents difficulties. [...]
[...] O'Reilly Media. Szabo, Nick Smart Contracts: Building Blocks for Digital Markets. http://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart_contracts_2.html Yarbrough, Karen Blockchain pilot program - Final Report Deeds. [...]
[...] I.1.2 What are the properties of the Blockchain? In the 1980s, David Chaum (1982) first introduced the idea of digital payments and digital currencies in history. Some institutions attempted to use Chaum's idea and created and marketed a cryptocurrency, E-gold and E-money were introduced. Despite all the efforts made by these institutions, the marketing of cryptocurrencies was a real failure for several reasons, such as a lack of centralized network structure, and lack of compliance with benchmark standards (Frisby. 2014). [...]
[...] Ethereum is a decentralized platform, based on the eponymous blockchain, intended for the advent of a decentralized web. It works with the ether cryptocurrency. Unlike the Bitcoin blockchain, which focuses on the monetary aspect, the Ethereum blockchain is designed to host a wide range of programs, called dApps, functioning with 'smart contracts'. While with private blockchain, certain rights are reserved for certain users, including the right to validate transactions. Private or authorized ledgers are a form of distributed ledger that works like a 'members-only club'. [...]
[...] The concept of private blockchain chain appeared, in mid-2015 to respond to certain institutions fearing the 'public register'. This allows for the implementation of a blockchain chain for which access authorizations, reading and verifying the register are under tighter control by an institution, but still allows for the preservation of most of the advantages of the technology, such as authenticity guarantee or partial decentralization . A private blockchain does not require the use of cryptocurrency, a private blockchain presents several strong points compared to traditional databases, without constituting a decisive innovation, like public blockchains, naturally associated with cryptocurrencies, together with digital assets issued and exchanged on the blockchain. [...]
