What is Blockchain?
The Blockchain is a list of records which continuously keeps growing. The records are referred as blocks which are connected using cryptography. Every block contains some transaction data with a time stamp. It is to be noted that the data in a blockchain cannot be modified once it is entered. New data can only be entered in the form of a new record or as they call it a new block. One can consider the blockchain as a digital ledger. The blockchain technology was introduced to monitor the flow of cryptocurrency, but now the use of this technology has expanded to various fields. If a customer wants to access any document, then he needs a private key, document public key, and document private key. The private key can be considered as a password which gives the user access to the blockchain. By entering the document public key, a user can see the document but to see what is in the document a user is required to enter document private key.
An example as to how blockchain can help the real estate market
Suppose you are a buyer looking forward to buy a 3BHK flat in Yelahanka area of Bengaluru. Now you have selected property, and you need to get the information about the property. The user can open blockchain on his computer and search for the information of the property in the land registry of the government. To find the same property the user will be required to enter the property ID given by the seller. In the blockchain data, a user can observe the entire chart of ownership of the property. One can also find the data regarding the previous owner; property taxes paid, receipts of maintenance, broker name, and many such other things. If a buyer wishes to have the detailed information of the property, then he will be required to ask the seller to provide him the private blockchain key.
Once the buyer confirms that he is buying the property, he can schedule a property visit, price negotiation and he can obtain access to property blockchain. The buyer can then add his banker to the blockchain who then goes through the property papers and title history after which the mortgage is approved. The selling agreement of the property is digitally signed, and the payment is done to the seller’s banker, and the data is again added on the blockchain. Once this is done the sub-registrar is informed about the sale, and the title is transferred into the buyer’s name.
Benefits of implementing blockchain in real estate
Those who have brought a property very well know what kind of tedious process it is to buy a property. The documentation of the property takes forever and before you can even understand anything you get handed over one big file. With the introduction of blockchain all the document of the property can be viewed online, and thus it can even be transferred that easily. Besides title fraud gets eliminated as the change in a block is not allowed in the blockchain.