Blockchain may be the technology that is underlying with cryptocurrency. But the splendid features of blockchain can revamp the entire world with a decentralized, transparent, trust-free community of sectors. Enhancing blockchain in real estatesector can make the community of traders hassle-free!
Blockchain enables peer-to-peer transactions and community people verification, hence there are no third parties intervening in the network for any of the processes. Blockchain enriched smart contracts are a real boon to the real estate eco-system. Let’s dig deeper into the concepts of smart contracts and their process!
What are smart contracts?
Smart contracts are a piece of computer protocol that performs a certain task on completion of specified conditions. Real estate has a transfer of ownership of properties through traditional paper agreements. Instead, the digitalized smart contracts can prevent fraudulent traders of duplicate properties. Frauds can happen in human inspections or intervention, but with completely digitalized,automated ownership transfer, the piece of code verifies the ownership reputation and property details, thereby avoiding fraudsters in the real estate community.
You may wonder how are these smart contracts automated for transferring ownership of assets! Let me connect you with a real-time instance for the smart contract process!
How do smart contracts work?
The smart contract process can be compared with our favorite vending machines that deliver snacks at our hands. Just rewind back the things you would do in the vending machines for buying a snack!
You would put the coins into the socket provided in the machine and then select the snack of your choice with code displayed. Once the vending machine accepts your payment, the snack is transferred to you via the tunnel at the bottom. It may look simpler! But, did you ever thought some machine would vend you snacks without human intervention?
It happened, right? Similarly, smart contracts are a self-executing protocol that transfers assets or the property of the seller to the buyer when money or equivalent currency is transferred. With smart contracts in the real estate sector, fraudulent traders can be banned. As the entire network has the accessibility to view the transaction of assets, if the property is not legitimate, nodes of the network will deny the transaction. Followed by dispute resolution action by the administrators of the real estate ecosystem would happen in the process!
Much smarter asset transactions to come on the way!
Sure, you’d have connected the smart contract processes to your daily life. Blockchain in real estate industry is a real boon for decentralized, trust-free trading of properties!
You’d remember smart contracts when you scan through the vending machines next time! If yes,drop us a line!