Real Estate and Blockchain Technology
AZIT is a blockchain-based, point integration platform for real estate and residential services. AZIT provides a service that allows users to conveniently use points as they see fit for residential services related to real estate or community facilities by integrating points that can be used anywhere.
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Today, we will take a look at how real estate and blockchain technology can work together. Recently, blockchain technology has also been used in the real estate market. The most useful example is real estate registration. In June 2017, Sweden introduced a real estate registration system using blockchain technology. In addition to Sweden, the United States, the United Kingdom, and various other countries are in the process of using real estate registration with blockchain technology.
Real Estate and Blockchain Technology
Lately, you might have seen the word “PropTech” a lot. PropTech is a term that combines property and technology, and refers to the real estate service industry being combined with information technology.
PropTech is being used in various industries such as real estate management, project development, investment and financing, as well as brokerage and leasing.
Using PropTech, secure real estate transactions are possible with blockchain technology. It makes it impossible to manipulate transaction records unlike paper documents, which can be easily forged. There are no counterfeit items, and because it is based online, the commission is also low.
In Korea, the electronic real estate contract system is one of the first examples of the government trying to use PropTech. It is a system that lets users trade real estate with only an official certificate and online signature, no documents or seals necessary. It is a method of buying and selling real estate through electronic signatures and public authentication. It replaces the traditional method in which the seller and the buyer sign a paper contract, stamp a seal, and conclude the sale or rental contract.
Unfortunately, it is still insufficient. Starting with a pilot operation in Seocho-gu on May 28, 2016, it expanded nationwide in August 2017. However, the utilization rate is still only 1.8%.
Blockchain Powerhouse: The United States
The U.S., a blockchain powerhouse, has also made great strides in the PropTech field.
The American Real Estate Association’s own venture capital team has purchased a stake in ‘Profi’, a blockchain-based real estate transaction platform, and is using it for real estate transactions. When users trade real estate online, Profi records the transaction on the blockchain. Real estate buyers and brokers can now transparently and conveniently make transactions online instead of offline with handwritten documents.
‘Ubiquity’ is also one of the most well-known PropTech companies. Founded in 2015, Ubiquity uses blockchain technology to record and track real estate transactions, land tenure, property deeds, liens, etc. The company has developed a blockchain-based application to solve the real estate market’s chronic problems, such as transparency before and after real estate transactions, large amounts of paperwork, and concerns about fraud. Blockchain technology offers a lot of solutions for the real estate market.
