Blockchain in Real Estate Management

From HandWiki

Blockchain in Real Estate Management refers to the application of blockchain technology in the operations, transactions, and administration of real estate properties. Blockchain technology, with its decentralized, secure, and transparent features, has the potential to significantly transform real estate management by providing a streamlined and trustworthy system for property transactions, land registries, leasing, and other aspects of real estate operations.

Overview

Blockchain technology, which emerged in 2008 as the underlying technology for the digital cryptocurrency Bitcoin, has been increasingly applied across various sectors, including the real estate industry. This technology enables peer-to-peer transactions and eliminates the need for intermediaries by maintaining a decentralized ledger that records all transactions across multiple nodes in the network.[1] The transparency, security, and efficiency provided by blockchain technology have the potential to address many challenges in the real estate sector, such as transaction inefficiencies, fraud, and lack of transparency.[2]

Applications in Real Estate Management

Property Transactions

Blockchain technology can streamline property transactions by automating processes, reducing the role of intermediaries, and providing a secure and transparent platform for transactions. Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, can be used to facilitate and automate the process of property sales and purchases. They can automatically execute transactions when predefined conditions are met, reducing the need for intermediaries and reducing transaction costs.[3][4]

Land Registries

One of the major applications of blockchain in real estate management is in the digitization of land registries. Blockchain can provide a secure, transparent, and tamper-proof system for maintaining land registries. This can significantly reduce the instances of fraud and disputes related to property ownership. A number of countries have started experimenting with or implementing blockchain-based land registries, which provides a decentralized and immutable record of property ownership.[5]

Leasing and Property Management

Blockchain can also be used to improve leasing processes and property management. Smart contracts can be used to automate rental agreements, with the contract automatically enforcing the terms of the lease. This can reduce disputes and make the leasing process more efficient. Additionally, blockchain can be used to create a transparent and immutable record of property maintenance, improvements, and repairs, which can improve property management.[6][7]

Benefits and Challenges

The use of blockchain in real estate management offers numerous benefits. It can increase transparency, reduce fraud, streamline transactions, and reduce the need for intermediaries. However, there are also significant challenges in implementing this technology. These include technical challenges, regulatory issues, and the need for widespread adoption for the system to be effective. Despite these challenges, the potential benefits of blockchain in real estate management are significant, and the technology is expected to play an increasingly important role in this sector in the coming years.[8][9][10]

See also

External links

References

  1. ↑ Mittal, Ankit; Sharma, Bhavyansh; Ranjan, Pinku (2020-11-27). "Real Estate Management System based on Blockchain". IEEE: 1–6. doi:10.1109/UPCON50219.2020.9376540. ISBN 978-1-6654-0373-3. https://ieeexplore.ieee.org/document/9376540. 
  2. ↑ Saari, Anniina; Junnila, Seppo; Vimpari, Jussi (2022-11-23). "Blockchain's Grand Promise for the Real Estate Sector: A Systematic Review" (in en). Applied Sciences 12 (23): 11940. doi:10.3390/app122311940. ISSN 2076-3417. 
  3. ↑ Streetman, Steve (2021) (in en). Cryptocurrency and Real Estate: how to Profit as Bitcoin and Blockchain Revolutionize Real Estate Investing. StreetSmart Investments LLC. ISBN 978-1736511718. 
  4. ↑ Gaikwad, Dipak D.; Hambir, Akshay N.; Chavan, hantanu S.; Khedkar, Gayatri K.; Athawale, Dr Shashikant V. (2022). "Real Estate Land Transaction System Using Blockchain". International Journal for Research in Applied Science and Engineering Technology 10 (3): 307. doi:10.22214/ijraset.2022.40633. ISSN 2321-9653. https://www.academia.edu/73330167. 
  5. ↑ Yeoh, William; Lee, Angela Siew Hoong; Ng, Claudia; Popovic, Ales; Han, Yue (2023-06-01). "Examining the Acceptance of Blockchain by Real Estate Buyers and Sellers" (in en). Information Systems Frontiers: 1–17. doi:10.1007/s10796-023-10411-8. ISSN 1572-9419. PMC 10233539. https://doi.org/10.1007/s10796-023-10411-8. 
  6. ↑ Saari, Anniina; Junnila, Seppo; Vimpari, Jussi (2022). "Blockchain's Grand Promise for the Real Estate Sector: A Systematic Review" (in en). Applied Sciences 12 (23): 11940. doi:10.3390/app122311940. ISSN 2076-3417. 
  7. ↑ Pankratov, Evgeny; Grigoryev, Vladimir; Pankratov, Oleg (2020-06-01). "The blockchain technology in real estate sector: Experience and prospects". IOP Conference Series: Materials Science and Engineering 869 (6): 062010. doi:10.1088/1757-899X/869/6/062010. ISSN 1757-8981. Bibcode: 2020MS&E..869f2010P. https://iopscience.iop.org/article/10.1088/1757-899X/869/6/062010. 
  8. ↑ Latifi, Sobhan; Zhang, Yunpeng; Cheng, Liang-Chieh (2019). "Blockchain-Based Real Estate Market: One Method for Applying Blockchain Technology in Commercial Real Estate Market". International Conference on Blockchain (IEEE): 528–535. doi:10.1109/Blockchain.2019.00002. ISBN 978-1-7281-4693-5. https://ieeexplore.ieee.org/document/8946229. 
  9. ↑ Ahmad, Iftikhar; A. Alqarni, Mohammed; Ali Almazroi, Abdulwahab; Alam, Laiba (2021). "Real Estate Management via a Decentralized Blockchain Platform" (in en). Computers, Materials & Continua 66 (2): 1813–1822. doi:10.32604/cmc.2020.013048. ISSN 1546-2226. https://www.techscience.com/cmc/v66n2/40660. 
  10. ↑ "Blockchain in Commercial Real Estate" (in en). https://www2.deloitte.com/us/en/pages/financial-services/articles/blockchain-in-commercial-real-estate.html. 




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