Blockchain To Help The Real Estate Industry To Combat Fraud
Industries have their eyes on the invaluable benefits that come together with Blockchain. Many industries like agriculture and supply chain have already explored the same, land management and real estate is soon to join the crypto bandwagon too. They definitely won’t be the last as the Blockchain technology seems to keep advancing.
At the moment, the real estate sector faces a high amount of cases of multiple stakeholders, fragmented properties, unclear land titles, fraud, corruption and an opaque system.This is where a Blockchain powered land management and real estate platform will come to rescue as it has never been needed more than it is today.
The Real Estate Sector
One of the greatest contributors to the economic growth of the country has to be the real estate sectoras it impacts immensely to the country’s GDP. India’s real estate sector holds about 8% of the country’s overall GDP which is predicted to increase to 13% by the year 2025. In this same time range, it is bound to reach $1 trillion, which proves how greatly real estate contributes to the GDP of any region.
Therefore, a robust system that is efficient, secure, cost effective and transparent –like Blockchain–is necessary for this growing sector.
Blockchain Technology Features
Blockchain comes at the center stage in the transformation of real estate. In order to get rid of the outdated methods in the real estate sector, a collaborated approach with Blockchain will prove to be beneficial.
Some features of the technology that can add value to the original land management methods can be:
- Decentralization, which will ensure that information is not stored at a single location. This will help avoiding the loss of data in case of a server fail.
- The peer to peer feature in Blockchain is such that there will be no intermediary between the two involved parties during any transactions in the system.
- The uniform ledger will help ensure the uniformity of the information stores across all the stakeholders.
- Transparency guarantees that the information stores is visible to all the parties involved.
- The risk of fraudulent activities is avoided due to traceability and the fact that Blockchain can never be modified.
- Information on the ledger is updated in real time across all the copies on the platform by stakeholder.
Cases of Blockchain Use inReal Estate
In spite of the technological advancements, land records are still stored on paper to this date. Moreover, they are stored in centralized locations, by which information can be lost or destroyed in the event of a catastrophe, man-made or natural. A similar case happened with Haiti when an earthquake occurrence destroyed most of the land records in the city, which led to dispute over land titles.
This could’ve been avoided with the help of Blockchain due to the records being stored on shared platforms. It also makes the information less prone to manipulation and fraud since the records once updated cannot be edited or deleted.