Blockchain is a real game-changer in real estate. Depending on the local market requirements a mix of services can be interlinked in very interesting ways. The end result is heightened security, transparency and optimized efficiency.
It starts with the property ownership registry, the cadastre. This is a database of who owns real estate. It is normally run by a government agency, and there are typically fairly tedious and time consuming processes that support the registration of a property, and its transfer to someone else in the event of a sale, liquidation or inheritance.
Several initiatives such as
The cadastre can initially be relatively simple in the scope of the data stored, and can be extended over time.
With a central registry on the blockchain, the next step is the creation of a marketplaces that utilize the data, and adds relevant data. One such example is Gencapp, a startup in Canada that adds renovation data from its projects activity. Any homeowner can contract with freelancers or companies to perform tasks that add value to their properties. By running a renovation or enhancement project through a marketplace like Gencapp (a ChainReactor partner), a property owner creates an event that is logged on the blockchain and linked to the property’s registry information. This data can be referenced at a later date for the purposes of valuation, or to enhance the overall picture a potential buyer has of the property. If structured correctly the data can also be used in insurance assessments.
Another interesting addition to the ecosystem is the Internet of Things (IoT). The cadastre can be enhanced to include 3D geospatial data, and some registries like that of Singapore, are being expanded to include this much richer data set. With the ability to place smart devices in a precise 3D framework, a variety of sensors, power generators, appliances, electricity and data networking devices and even cameras can be catalogued and referenced as part of the data available for a property. This adds overall value to the property.
Creation of a comprehensive real estate marketplace, plugged into the richness and reliability of the blockchain database, then opens up a variety of possibilities. Person-to-person business models emerge, as do enhanced roles for real estate agencies.
ChainReactor offers a highly scalable, rich data platform with hardware-secured private key security to ensure the privacy of data remains paramount. Every facet of the real estate ecosystem can be interlinked, with geographic precision and security definable to single data field resolution.