Recently, The IBREA’s (International Blockchain Real Estate Association) Conference was carried out, featuring an open debate about the benefits that can be harvested for Real Estate business from Blockchain technology.
The keynote included a speech by Jeff Garzik –co-founder of Bloq.com, a site dedicated to developing enterprise grade blockchain technology for companies–. Garzik stated several interesting facts that would demonstrate great security and reliability capabilities of blockchain for real estate transactions.
The basic talk points included seven important applications for Real Estate businesses that can be provided by Blockchain:
- DIGITAL TITLES: Once registered in a decentralized system such as the bitcoin’s network, a title can not be altered or modified by any means due to the irrefutability of the distributed ledger technology. Reducing the cost due for registering titles.
- MULTI-SIGNATURE ESCROW SYSTEM, This allows all the parties of a Real Estate business (Buyer, Seller, and Arbitrator if necessary) to create a shared account to handle the funds and carry out the deal, eliminating all the process of having to deal with contractors and regulatory disputes, creating an environment where the transaction and titling itself are more reliable.
- CROWDFUNDING, There can be a lot of funding coming from small investors without adding more cost to the business. The ultimate goal of all this process is to reduce risk and liability and to gain a better execution.
- LIQUIDITY. Transactions can be done faster, which encourages businesses to be executed. If the operations and contracts are done quicker, investors, buyers, and sellers will feel more encouraged to do business.
- AUTOMATING PAYMENTS, Unlike Credit card and other traditional systems of payment where with the information of the credit card any person will gain the capability to pull your money out of your account, with bitcoin and blockchain technology you are the only person who has the power to give permission or move the money from its place.
- DEEP DATA, Providing insight to buyers, sellers, and investors. Giving them the capability to handle in a better way the business, putting onto the table a lead for better decisions due to the possibility of a Real-time auditing and Real-time risk management.
- INFORMATION VERACITY, Blockchain verifies all the transactions and keeps a permanent record of transactions, files, etc. Also, provides provable data sources. Better data = Better insights = Better execution.
During his talk, Garzik detailed that Bloq has been working on creating a general platform for Real Estate Industry, collaborating with major corporations like IBM, Microsoft and Deloitte.