Implications of block chain in real estate industry

Abstract

In today’s world of technology, we see that even the technology is running faster we are still far behind in the aspect of real estate industry. The standard procedure for the sale/purchase of a real estate includes several logical steps: housing assessment, collection of documents, conclusion of the preliminary contract, conclusion of the main contract, transfer of money, and registration, thus making the overall process lengthier, time consuming, complex involving many intermediaries and more cost. The use of online websites have made this time consuming process a bit faster, but the problem is about the security and issues regarding multiple resale of real estate. In this paper we focus on blockchain technology. Blockchain is a digital record of transaction in which the individual records are called as blocks, these blocks are linked using cryptography. Each block contains transaction data, timestamp and hash of previous block which makes it more secure and tamper proof. The three main properties of Blockchain are decentralization, transparency and immutability making it more robust. Blockchain technology has various number of applications which can transform society such as Asset Management, Insurance, Health Industry, Blockchain Government, Blockchain Identity, Passports etc. The research focuses on how blockchain technology can bring a diversified change in real estate industry. As of today the process is more time consuming, paper driven and most of the steps work offline. The research explores more about what the technology means, its benefits in real estate industry and its working model.