Real Estate on A Distributed Ledger System (DLS) or Blockchain

What is Blockchain?

Firstly, what is blockchain??Simply put, a blockchain related to real estate is a Distributed Ledgering System (DLS) that stores information that cannot be altered once recorded yet can record updates to that information. ?

Blockchain is best explained as a 'ledger' that stores data in a 'block' of information. ?For example, real estate information will be stored in blocks, and when updates are needed or required, these updates will be connected to form a chain once validated via the network. ?Each block contains information validated by 'channel partners' before being added to the ledger. ?

Channel partners refer to an approved network community approved by the property owner. ?Each channel partner will have a specific role related to the real estate property transactions which will be verified by either a computer system or humans. ?

These transactions are then added or extended to a real estate chain that cannot be altered. ?This ledger is then distributed across the network of valued transaction owners, confirming that information is correct and unchangeable.

Our blockchains will be transparent, secure, and, in some instances, public, making them revolutionary for the real estate industry. ?Furthermore, blockchain processes are now being linked to many online areas, such as Internet and big box store purchases, rental transactions, money transfers, and lending. ?Therefore, our blockchains will create a more transparent and secure transaction process in real estate.

How a Distributed Ledger (DLS) or Blockchain Changes Real Estate

Firstly, smart contracts speed up and simplify real estate transactions and settlements.?A smart contract is a program that can execute automatically without a third party or human intervention. ?This means that both parties can track all the relevant information through a single contract. ?Furthermore, because contracts are immediately executed, there is no risk of either party being misled by false information.

Secondly, a distributed ledger will make buying and selling real estate much easier and safer. ?Because of blockchain's public and transparency, all parties involved in the transaction can access the same information. ?This eliminates the possibility of any misleading information which could cause delays in transactions. ?Furthermore, through blockchain technology, the title to the property can be recorded on the blockchain. ?This eliminates the possibility of falsified ownership information.

Thirdly, smart contracts can eliminate human error, which can occur through third-party intermediaries. ?For example, agents or lawyers can add their own subjective interpretation of a document, which can delay settlements. ?Finally, through smart contracts, parties can define rules which are automatically executed. ?For example, if the price is agreed upon, the ownership of a property can be transferred automatically.

Conclusion

A Real Blockchain Solution DLS is changing how real estate transactions are executed, making them safer, faster, and more efficient.