Blockchain adoption is on the rise in the real estate industry as market players realize its potential to drive more transparent, efficient, and cheaper operations across the industry. Many real estate companies across the globe are leveraging consultancy for enterprise blockchain to steer the implementation of blockchain into their business operations to benefit from the technology.
The following are blockchain use-cases for the real estate industry that elucidate how blockchain is poised to revitalize the industry.
Digital identity verification
When it comes to leasing or sale transactions, significant time is spent on due diligence related to financial and legal review. This is because of the use of paper documents for proof of identity. These documents are stored in silos and offer limited flexibility to be customized to cater to diverse needs.
The blockchain-driven digital identity verification process can mitigate problems with physical identity proofs and accelerate pre-transaction activities such as financial assessment, acquiring a mortgage commitment, and more.
Asset and cash flow management
The current asset management process is beset with complexities due to dependencies among property managers, landlords, tenants, and vendors. Right from the initiation of a lease process, various payment and service transactions have to be executed, tracked, and recorded regularly.
The execution of a property lease using a smart contract can mitigate various challenges related to asset and cash flow management. A smart contract is a self-executing contract with the terms of the agreement between two parties being directly written into lines of code. The use of a blockchain-based smart contract can bring transparency to the lease process and transactions.
Enterprises across various industries have partnered with professionals offering consultancy for enterprise blockchain, in order to identify smart contract use-cases for their businesses.
Finance and payments
Payments and money transfer for real estate transactions are time-consuming and expensive due to extensive documentation and involvement of multiple-channel partners. Furthermore, for a cross-border transaction, foreign exchange fees and involvement of various intermediaries increase transaction costs and processing time.
Blockchain-powered smart contracts and digital identities can potentially alleviate inefficiencies and increase transparency in real estate payment processes. It can provide a series of complete, traceable, and immutable records that aid in the audit trail of transactions, such as ownership history, mortgage payments, and property cash flow.
Although still in its infancy, blockchain seems destined to redefine the operating models across the real estate industry. Enterprises evaluating an upgrade of their current systems should have blockchain on their mind as its potential and usefulness can bring value to the industry.
At Millennial Partners, we serve as FinTech global consultants, helping enterprises with end-to-end blockchain implementation. We follow a coherent roadmap – from use-case development to solution implementation to deployment – to efficiently navigate the blockchain transformation journey for our clients.
Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. Our digital transformation roadmaps include incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.
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