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Blockchain is gradually taking over the business world by storm. After cryptocurrency success, blockchain is making its way into other industries like healthcare, real estate, finance, gaming, social media, and so on.
The unprecedented rise of cryptocurrencies in the last decade has paved a new path for various industry verticals. Using the attributes of blockchain like transparency, immutability, and decentralization, they are improving their financial transactions and operations. Thus, eradicating complexities from the most fundamental day-to-day operations.
The innovative concept of blockchain is significantly reaching the masses. It is steadily impacting various areas of life, including the complex real estate landscape.
For instance, issues like lack of transparency and data redundancy in the rental agreements’ processes require immediate changes.
Considering the daily dealings of real estate companies with contracts, “smart contracts” were need of the hour and indeed, a much-awaited breakthrough.
However, interestingly, a computer scientist named Nick Szabo conceived the concept of digital contracts over 20 years ago.
He proposed that the real estate industry requires smart contracts. Because in a real estate office, numerous people deal with disagreements due to agreements created informally, such as those based on people’s selective memory.
Nonetheless, if your wallet comes integrated within a smart contract implemented especially for such deals, it is immutable and fixed.
In that case, either you’re in, or not. Here, trust is getting automated.
Industry giants, those knowing the power of blockchain based smart contracts, are bringing this topic up for discussion from scratch.
What Are Blockchain Based Smart Contracts in Real-Estate?
Essentially, a smart contract deployed over a blockchain platform is a legit digital agreement system. In which, clauses get automatically executed without involving any intervention of the third party.
Due to blockchain’s decentralized feature, the mentioned terms and conditions are explicitly transparent.
Also, smart contracts allow tokenizing a property, thus, providing value to the token of the respective asset.
Another significant advantage of smart contracts over physical alternatives is the opportunity for automatic execution of contract verifications and rental agreements.
What Can We Accomplish with Blockchain Based Smart Contracts in Real Estate?
Rent Agreements
Approval and verification are two of the most time-consuming processes in rental agreements. It gets cut down into two steps. Real estate and bank fees get eschewed due to two-party involvement.
Rent Payment
The secure blockchain technology backs up a clear and rigorous schedule for timely rent payments.
Establishing a Security Deposit:
Following the deposit clauses mentioned in the contract, damage charges obtained at the end of the lease.
Open House Hosting
With the help of Smart Lock Technology, you can allow a tenant to visit your property by connecting the smartphone to the lock of the door to open it.
Also Read: How Blockchain Can Influence Real Estate Investing
Real-world Smart Contracts Solutions Presented by Oodles
Given the ongoing advancements and evolvement of the automation process, Oodles Blockchain can help you develop your version of a smart contract.
At Oodles, smart contract experts ensure that the process of transitioning a traditional contract to digital contract is efficient and effortless.
If you integrate a blockchain based application of an autonomous system like the mentioned above, it can benefit in many areas of the business.A few important reads:
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