Challenges faced by the real estate industry
Lack of transparency
Low transparency leaves the industry vulnerable to criminal transactions and money-laundering. The UN Office on Drugs and Crimes estimates that US$1.6trn is laundered annually.
Ballooning administrative costs
Forbes states that non-core work takes 89% of the average agent’s workday. Admin costs grow rapidly, while record-keeping requirements hardly meet traditional techniques.
Processing for basic payments like surveyors’ fees is done slowly, with many systems relying on paper records and costly human work; stamp duties and taxes can be even more time-consuming.
Barriers to entry
Real estate involves big-ticket purchases, accessible to institutions and high net-worth individuals. The less-wealthy struggle to enter the market, while buildings stand empty for lack of a buyer.
Trust and reliability
Many developing countries suffer from low societal trust, or unreliable basic administrative services. Transactions usually require a trusted third party, which incurs costs, risks, and delays.
Lack of liquidity
A space characterized by large transactions often struggles with liquidity; transaction volumes fall while both vendors and purchasers suffer.
Inaccurate land ownership records
Many nations have unreliable or incomplete land ownership records. In nations with good basic record-keeping, intestacy and opaque transactions make owner identification fraught.
Commercial insights and analytics
Insights into everything from customer experience to financial patterns can help businesses excel. But it’s difficult to extract those insights from paper records stored in multiple locations.
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Blockchain solutions for real estate from Aetsoft
Immutable, auditable records of transactions and entities establish transparency and compliance, eliminating the possibility of criminal activity.
Tokenization and fractionalization
Tokenization of the value of a real asset allows it to be traded on the blockchain through exchanges like any token, eliminating barriers to entry.
Conversion into fungible tokens makes real estate markets more liquid without becoming more volatile. Lowered barriers to entry increase aggregate demand and stimulate supply.
Smart, self-executing contracts can be chained into workflows that automate payment of stamp duties, taxes, and agents’ fees, ensuring compliance and reducing administrative load.
Land ownership records kept on blockchain are accessible and immutable. Only authorized persons can change them, and each change is recorded.
Secure, accessible data for analysis
Easily analyse data and extract meaningful insights from it by using standard big data techniques on-chain with Turing-complete, blockchain-based dapps.
Common activities can be automated using smart contracts; record-keeping is automated as standard on the blockchain, setting employees free for higher-value tasks.
Trustless and immutable
No trusted third party is required; blockchain cryptology removes intermediaries, establishing a trustless environment between contracting parties and sharply reducing transaction risks.
Why consider blockchain for real estate?
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Zheleznodorozhnaya 33A/1-6 Minsk, 220089, Belarus