Blockchain is becoming THE buzzword of now, revolutionizing the financial and banking systems, however, how will it affect the property industry and will it completely change the industry?
At this year’s Property Portal Watch, here in Bangkok, Denis Nemstev, the CEO of Hipflat discussed the concept of blockchain being integrated into the industry. This conference is the industries platform for new inventions, tech, and ideas that push the property and real estate sector forward.
How does Blockchain work and how will the BlockChain technology affect the Real Estate Industry?
Blockchain can solve a lot of problems with its decentralized nature that allows the flow of information while creating a secure framework for the members within the specific Blockchain.
As there have to be large transactions made within the Property industry, Blockchain can offer a more secure transaction between the many portals and key figures and players within a property sale. This can prevent hackers and allows everyone within the blockchain network to see the history of all the transactions ever made in a secure environment and can keep track of the transactions easily.
As Bitcoin becomes more popular as a digital currency with more and more people using it to buy property, the blockchain technology allows you to create digital contracts and a figure framework that keeps a secure record of much-needed information.
Blockchain essentially can create Digitalised Property Titles as we have different rates of ownership registry. It creates a digital identity, with a single source of trust. Once you have a digitalized title on the blockchain you can actually transact quickly using the framework. Property transactions are very complex, however, the ability to use smart contracts via the blockchain framework makes it much easier.
Blockchain speeds up the process, removes many of the middlemen and also reduces the cost of the heavy paperwork and process. It creates a digital legal framework but eventually, it will enable ownership online.
Smart Contracts are the next step in the evolution of the property industry along with Property profiles. If you are building a new commercial development for example, through the use of smart contracts they can allow property investors from around the world to invest the sums of money needed and the smart contract will keep track of every investor’s transaction within the property development and will automatically give dividends to the shareholders and investors within this commercial property loop. This helps with liquidity and trading within the property industry by using the blockchain technology.
Blockchain can solve the problem of global decentralized data and give access to the data for the network of people who need or want it, from buyers, sellers, banks, property portals and landlords etc. They can supply the data to the blockchain and people can exchange the information freely within the secure platform.
It will allow people to list properties securely and use their digital wallet internally which locks it all into the framework.
It’s inevitable that the industry will have to implement and move with the technological revolution that will eventually enhance all industries. The role of blockchain within the property sector will drive down cost, help to create smart contracts and control the security of transactions.
For more information on the Blockchain movement within the property industry head over to Hipflat – https://www.hipflat.co.th/en
Founder & CEO at Hipflat – a startup, based in Bangkok, that helps home buyers find homes online and make good investment decisions.
Hipflat’s ultimate goal is to build the world’s best online real estate search experience for Southeast Asia and provide home seekers with as many insights into property market as possible, making it much more transparent and efficient than it is now.