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With exponential growth in cyber-attacks, it would be a mistake to ignore the potential risks posed by cybercriminals to the real estate industry. Websites like https://thecryptogenius.software/ carter their UI and strategies for both experienced and new bitcoin traders. The platform has paid extraordinary attention to detail while designing its user interface. A blockchain-based strategy can make these transactions more secure and trustworthy by ensuring that all parties follow the same rules regarding sensitive information.
Secure Real Estate Information Management using blockchain
The real estate industry is no stranger to global transactions. The sheer magnitude of international transactions makes them particularly vulnerable to cyberattacks. Any single transaction can involve numerous brokers, agents, and financial institutions across countries and continents. Delays or errors can cost hundreds of thousands of dollars before any proof of wrongdoing is identified and remedied — if it can be remedied by the government at all.
No longer bound by geographic or cultural boundaries, blockchain technology can help data relationships in the real estate and mortgage industry become more secure and trustworthy. This technology provides an irrefutable audit trail by ensuring that all parties follow the same rules with respect to sensitive information.
The real estate industry is estimated to be worth $162 trillion and $29 trillion in residential and commercial real estate, respectively. The industry is highly fragmented, with over 6 million brokers and agents in the United States alone.
For instance, a real estate investment trust (REIT) may issue separate debentures and bonds to raise funds for various international projects. Each multinational company involved in these transactions has its own data collection points that require protection against cybercriminals; the blockchain can help companies protect these points using one shared framework.
Use of blockchain in the real estate industry:
Blockchains in the real estate industry can play several roles.
First, they can be used to securely manage the general information management of participants in the ledger. It is imperative when negotiating with multiple parties. With this information in place, parties can trust that they follow the same rules and procedures and therefore know when to expect their counterparts’ responses.
Second, blockchains provide candidates with a single record system for their real estate dealings and communications about their transactions. It can help reduce errors or delays in transactions or other communications between companies and give customers more comfort that each party is on the up and up when communicating about transactions.
Peer-to-peer real estate marketplace:
The most effective use of blockchain in the real estate industry is its ability to provide a peer-to-peer system of record. It is imperative in real estate transactions requiring multiple parties, such as REITs, which can require hundreds or thousands of shareholders to sign off on corresponding documents and records before closing. An accurate peer-to-peer system could make this process more efficient, allowing each shareholder to access only that part of the ledger they need rather than all shareholders’ information. In addition, this functionality would eliminate the slow pace investors must endure while waiting for their documents to be approved.
Crowdfunding real estate projects:
One of the industry’s most glaring problems involves real estate projects that fail to reach their funding goals. However, crowdfunding platforms have successfully funded many such projects over the years. The blockchain can help make these platforms even more robust than they are today by providing a single pathway for all interested parties to contribute to a project.
Instead of investing funds in private equity, as is common in equity crowdfunding (crowdfunding for companies looking to raise cash), investors could more directly invest in real estate ventures on these same platforms. This strategy could revolutionize the fundraising process for real estate ventures—and open up a new world of investment options for everyday people.
Trusted relationship between buyers and sellers:
The bargaining process can be stressful for many buyers and sellers of real estate. The blockchain can help relieve some of that stress by providing a shared system of record between buyers, sellers, and their agents. In addition, it eliminates the possibility that one party could change or delete information in the middle of a negotiation.
Title management and contract execution in real estate:
Smart contracts are an obvious application in the real estate industry, as a blockchain ledger can manage deeds and titles for real estate transactions. It would improve the efficiency of title searches, document management and contract execution.
Mortgage default fraud:
Mortgage default fraud has been estimated to account for $1 billion in losses yearly in the United States alone. With its irrefutable public ledger, the blockchain system is ideally suited to prevent mortgage fraud. Mortgage loans could be issued on this shared ledger that would record each loan’s progress through the mortgage origination and securitization process. It would help reduce the risk for all involved due to increased transparency and trust between parties.
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