Our existing commercial real estate market is facing a myriad of problems. Apart from the lengthy processes, the many fees involved often end up increasing the price of the property purchase beyond even the original price. If you were involved in acquiring property, then you would know what am talking about in the sector. However, some real estate venture has taken the liberty of a solution to these common challenges. Blockchain as we know it is a distributed secure ledger, and this is what the investments will innovate to make a network with a copy of it.
The implications of utilizing blockchain for real estate payment would have far more impact than we would anticipate. Using such an approach would rid the whole purchasing process of the current bottlenecks and streamline the acquisition process. If you feel that blockchain does have a place in the real estate world, then the following venture should be of interest
What Is BlockSquare?
BlockSquare is a blockchain-based plug and plays protocol that will be in use for real estate payments. The contract will act as a secure way for real estate property players to buy or sell portions of their properties on the blockchain. Additionally, the BlockSquare will provide an infrastructure with useful tools for users to engage in property investments. That will be made possible by BlockSquare ability to tokenize the properties based on a Proof of Title protocol linking the features to the title data at the official land registries.
How Proof of Title works
The concept of a tokenized property will work with Ethereum as the underlying blockchain technology. Additionally, the transfer of the real value to the tokens will entail using a system to link the coded objects to the original land registries information.
The smart contracts form the basis of this links and will have an internal logic which is free from manipulation. Once the smart contract deploys on the blockchain network, an internal logic which is unchangeable forms. That means once the smart contract implements, no modifications can take place. BlockSquare makes use of this property by utilizing the characteristics to copy the property’s specific information and include it in its PropToken smart contracts. The PropToken will additionally get the original contract to create an address which links to the property title on the land registry side. That means BlockSquare works to connect the value of the property in reality and copies it to the blockchain.
How BlockSquare could improve real estate acquisition
- Open up real estate investing to more investors due to the tokenization capability
- Secure settlements of real estate property purchases thanks to the level of blockchain susceptibility to tampering
- Transparency and trust through the smart contract will build confidence among real estate players
- Tokenizing the real estate world will also help lower the barrier entry often witnessed
With similarity to existing payments platforms, BlockSquare is offering tools that could prompt more access to real estate property for users from anywhere around the globe. The set of payment protocols provide for a tokenization process which is yet to happen in the industry. However, BlockSquare still faces the challenges of having to overcome the various regulatory measures and the volatility of cryptocurrency. Consequently, it might seem like a worthwhile project but the risks are definite.