BHOM is going to open an era of commercialization of the blockchain with the aim of speeding up transactions and property investments via crypto. The BHOM coin will be used to securitize property via which stable values of properties can be exchanged with cash or crypto.
Problems With Real Estate Transactions Today
The major issue with property transactions today is verification. Many people have incurred huge losses due to false documents. The current laws and institutions have tried to solve these issues, but major issues still exist.
Firstly, the time difference between the transaction and the verification is an issue. Today, before making any payments, the documents are usually reviews at the registry office just before making payments. This is because both parties are usually afraid that changes may be made before payments are made. While this helps to cut the time, there is a time delay. One way to overcome this time risk is to rely on an intermediary.
Secondly, there is the risk of being given counterfeit documents. In some cases, a party may present a fake ID or seals on documents. The incidents of fake IDS and seals have become so common these days that they never make it to the news in Korea. These incidents have led to people losing tens of billions of won in some cases.
Thirdly, the process of confirming a document is quite complex. In most cases, you will need to acquire the services of a certified agent. This is risky and burdensome since the agent might turn out to be a con. Besides that, these qualified agents charge a high fee to do the job.
Fourthly, property is quite costly. Besides that, it is almost impossible to convert into liquid assets when you need cash. In order to sell, you will need to wait months or weeks, depending on your location. In some cases, it may even take a year to find the right buyer. If you are in too much of a hurry, you might end up making losses on the transactions. Another issue is that property has been the preserve of the super-rich for many years. This is because it requires a lot of capital to invest in property.
BHOM: The Solution
Blockchain is the perfect solution for solving the issue of verification in the real estate sector. This technology can eliminate the time difference that exists between payments and confirmation of documents. Once a contract is uploaded, the blockchain creates a smart contract. This makes it possible to conduct payments and verifications at the same time.
The blockchain is almost impossible to fake. Various algorithms ensure that each blockchain transaction is secured and transparent. This is especially so compared to the current primitive methods that entail the use of seals, which can be easily counterfeited.
On the BHOM blockchain, all the user needs to do is check the results of their query. They will have full confidence that every transaction was genuine. However, real estate is only the start. BHOM sees itself being involved in all aspects of life. These include medicine, education, finance, and even logistics that are powered by the blockchain.