RxEAL is a platform for secure rental deposit storage that utilizes blockchain technology to solve long-standing problems faced by rental markets. One of the most pressing challenges in rental transactions is the high rate of security deposit disputes – globally, almost half of all security deposits are subject to disputes. RxEAL aims to solve this problem by employing blockchain technology and smart contracts to improve rental security deposit storage and dispute resolution.
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The majority of security deposit disputes are raised on the basis that funds have not been returned or the amount returned was lower than expected. However, the problem is even bigger than the dispute rates reflect, because a significant number of conflicts don’t get properly solved. Hence, the challenge is twofold: first, lessees have to hand over the deposit funds to lessors and both parties need to trust that the other party won’t violate the agreement; second – legal actions required to solve these disputes are too complicated and too costly.
The Blockchain Solution
The potential of blockchain in rental markets lies in the fact that trust is built into the technology’s design. The solution provided by RxEAL eliminates the possibility of breaching the contract terms, hence solving the first issue – the lack of trust associated with rental agreements. In addition, the RxEAL team believes that it is also essential that the deposited funds are distributed fairly and promptly at the end of the agreement.
Since blockchain is a decentralized technology, meaning that no middleman is needed, it has a great potential to provide the required solution. On the RxEAL platform, the blockchain technology is used to directly connect independent legal experts with parties involved in a rental agreement, which significantly reduces legal costs and time required to solve a dispute.
By combining blockchain technology with everyday rental transactions, RxEAL is able to create an entirely new and improved way for users with little or no technical knowledge to take advantage of the benefits offered by blockchain technology and smart contracts. Compared to the traditional alternatives, the solution offered by RxEAL is safer, faster and cheaper.
Benefits to Users
The RxEAL solution is beneficial to both sides. For landlords, the use of smart contracts allows to become more transparent with clients, thus improving their business reputation and the level of trust. The introduction of a new blockchain solution is also great for marketing communication, as it allows positioning the landlord as a forward thinking, modern and client focused business. Also, this product is particularly appealing to the rapidly growing cryptocurrency community, providing landlords with an increase in the customer base. Altogether, RxEAL adds value to the rental product, creating a competitive advantage in the market.
Tenants also benefit from this solution in multiple ways. The platform guarantees that the deposited amount is stored securely and cannot be accessed by the landlord without a mutual agreement. Also, when the contract ends, the security deposit is returned almost immediately. Finally, holding the security deposit in cryptocurrency creates the possibility for both sides to profit from cryptocurrency price appreciation.
Business Growth Potential
Currently, RxEAL’s main focus is on real estate and automotive markets worth multiple trillions of dollars, but the solution can be applied to other rental business sectors as well. Along with the rise of sharing economy, travel and other socio-economic developments, the rental market is continuously growing – more people than ever before are involved in rental transactions. As the volume of rental transactions continues to increase, so does the demand for a better way of storing security deposits. One of the underlying strengths of the RXL token is that all services offered by RxEAL can only be purchased in RXL tokens, which makes RXL a utility token. Given the fixed token supply, an increase in the usage of RxEAL services drives appreciation of the token value. This is a strong advantage over cryptocurrencies that don’t have an inherent utility and are mostly used for speculative purposes. Given the real life applicability of the RxEAL platform, it is one of the projects that will accelerate mass adaption of cryptocurrency and blockchain solutions.
RxEAL is backed by a reputable and verified development team and partners with a track record of delivering the product, such as, Scandiweb – the leading blockchain developers in the Baltics who are behind the successful Publica ICO. The team has already developed a working platform prototype, and it is planned to arrive at a final product already in Q3, 2018.
How RxEAL Works
- On the RxEAL platform, users are able to generate smart contracts based on terms both parties have agreed on.
- The contract ensures that the deposit amount is stored securely on the Ethereum blockchain throughout the term of the agreement*.
- In the event of a dispute arising regarding the final split, the platform will provide decentralized and indipendent arbitrage conducted by qualified members who earn RXL tokens for resolving the dispute.
*RxEAL will provide the option to create smart contracts with values indicated in DAI (a cryptocurrency that is price stabilized against the value of the U.S. Dollar) for those users who will want to maintain the value of the deposit relative to fiat currency.
Dates to Note
Public pre-sale starts: January 15th, 2018
Public pre-sale ends: February 5th, 2018 at 12:00 UTC or upon reaching the presale cap. **Pre-sale participants can buy RXL tokens with a 100% bonus at a fixed rate of 0.0004 ETH.
More information: rxeal.com