How Blockchain could disrupt the real estate! – Aveesh Shetty
Physical deeds can easily get lost or stolen
natural disaster
Standard paperwork models, digital or not, are often subject to fraud
unauthorized copies
false signatures
Centralized registers can lead to widespread tampering by powerful actors
corrupt governments
co-corporations
Tamper-evident hashes
cannot alter logged data without disrupting the chain
Data replication
better availability
resistant to disasters
data cannot be lost
On-chain transfer
drastically reduces the time required to transfer property
no disputes as to who owns the property, since transfers are immutably logged on-chain.
Previously, transacting high-value assets such as real estate exclusively through digital channels has never been the norm. Real estate transactions are often conducted offline involving face-to-face engagements with various entities. Blockchain, however, opened up ways to change this. The introduction of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and be traded like cryptocurrencies like Bitcoin and ether.
By tokenizing real property, assets can then be traded much like stocks on an exchange and transactions can be done online.
https://atlant.io/
ATLANT allows sellers to tokenize assets, essentially handling it like a stock sale, and liquidating that asset through a token sale using the platform. The collected tokens can be exchanged for fiat currency, with buyers owning a percentage stake of the property.
Brokers, lawyers, and banks have long been part of the real estate ecosystem. However, blockchain may soon usher in a shift in their roles and participation in real estate transactions. New platforms can eventually assume functions such as listings, payments, and legal documentation. Cutting out the intermediaries will result in buyers and sellers getting more out of their money as they save on commissions and fees charged by these intermediaries.
The owner of a Property
The owner puts in a request to list on the ATLANT Platform and specifies an asking price of GoodMall at used $25 million, along with other required inqsoformation about the property.ATLANT verifies that the asset meets all requirements for listing.
Legal Verification
An attorney and/or other qualified authority in GoodMall’s production checks whether the real estate title is clean, checks for the absence of debt, and validates other parameters specified by the owner.
SPV
GoodMall Holding a special purpose vehicle (SPV), which is a specific type of corporation commonly used in commercial real estate is founded in order to own the GoodMall property in its entirely
Tokenization
ATLANT tokenizes GoodMall Holding, dividing the total value of the SPV into tokens, where 1 token = 1 mm2 forming a direct relationship between the number of token and the total value of the property
Listing
ATLANT places the Property Token Offering (PTO) the Goodmall token (GMT) on its trading platform. Individuals and businesses around the world can buy the tokens, acquiring fractional ownership in GoodMall Holding, owned by until the asset is fully funded (until all $2 million worth of the GMT tokens have been purchased).
Payment to Seller
$25 million of an equivalent in the cryptocurrency (as selected) is transferred to the former owner of GoodMall . Investors are then sent the number of GMT tokens they have purchased on the ATLANT platform.
Now let look at a example of permissioned blockchain
Dubai’s land registrar has revealed it is developing a system that would seek to record all local real estate contracts on a blockchain.
The project, part of a sweeping plan to secure all government documents on a blockchain by 2020, was announced this week by Dubai Land Department, the government agency tasked with overseeing land purchases and approving real estate trades.
In a press release issued Saturday, the agency said, “The technology will allow investors residing in Dubai and around the world to verify property data that is backed by timestamp signatures, enhancing the accuracy of data, the credibility of investment transactions and the transparency and clarity of the market.”
On the leasing side, the department said, the platform will connect renters not only to landlords but also to other property-related billers, such as electrical, water and telecommunications utilities.
The latter will allow tenants “to make payments electronically without the need to write cheques or print any paper … within a few minutes at any time and from anywhere in the world.”
There is this company which provides software as a service to store land records
Watch Chronicled’s blockchain engineer Maksym Petkus do a live demo of Chronicled’s blockchain x IoT solutions, this time with a Quorum blockchain integration.
Blockchain start-up Zebi Data India Private Ltd, which has created a secure land record solution for the greenfield Andhra Pradesh Capital Amaravati, is betting big on the technology’s applications for other sectors such as hospitality, education, retail, and logistics.
Published at Sun, 20 Oct 2019 12:37:45 +0000
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