{"id":1053,"date":"2018-11-19T18:21:11","date_gmt":"2018-11-19T12:51:11","guid":{"rendered":"https:\/\/blockchainappfactory.com\/blog\/?p=1053"},"modified":"2022-04-23T14:57:00","modified_gmt":"2022-04-23T09:27:00","slug":"how-are-smart-contracts-going-to-change-the-real-estate-industry","status":"publish","type":"post","link":"https:\/\/www.blockchainappfactory.com\/blog\/how-are-smart-contracts-going-to-change-the-real-estate-industry\/","title":{"rendered":"How are smart contracts going to change the real estate industry?"},"content":{"rendered":"

Smart Contracts in Real Estate Industry<\/span><\/h2>\n

Blockchain technology is slowly but surely taking over the business world we have known for the past decades.<\/span><\/p>\n

The rise of cryptocurrencies has paved a new way for companies to conduct their financial transactions, thus simplifying the most basic day-to-day activities.<\/span><\/p>\n

The innovative concept of the Under is confidently reaching the masses and is steadily transforming every area of life, including the troubled real estate sector.<\/span><\/p>\n

Lack of transparency combined with the data redundancy in the rental agreements\u2019 procedures calls for quick changes.<\/span><\/p>\n

Bearing in mind that companies are dealing with contracts on a daily basis, the appearance of the<\/span> \u201cSmart Contract<\/span>\u201d concept was indeed a long-awaited breakthrough.<\/span><\/span><\/strong><\/p>\n

Interestingly enough, the actual idea of the digital contract was conceived over 20 years ago by computer scientist Nick Szabo.<\/span><\/p>\n

According to him,<\/span> \u201cThe industry needs smart contracts<\/span><\/strong>. In a real estate office, many people have disagreements because of informal oral agreements that are subject to people\u2019s sometimes-selective memory. However, if their wallet is in the smart contract tied to the deal, it is fixed and immutable. You\u2019re either in, or you\u2019re not. The trust is automated.\u201d<\/span> <\/span><\/p>\n

Industry players, having realized the potential of the blockchain-based contracts in the real estate dealings, have recently brought the topic up for discussion anew.<\/span><\/p>\n

In essence, a smart contract is a legal digital agreement whose clauses are executed automatically without the interference of a third party.<\/span><\/p>\n

Its terms and conditions are completely transparent, thanks to the decentralized blockchain technology.<\/span><\/p>\n

Additionally, smart contracts enable the tokenization of a property, thus giving value to the token corresponding to the respective asset.<\/span><\/p>\n

The opportunity to automate rental agreements and contract verifications gives smart contracts a significant advantage over its physical alternative.<\/span><\/p>\n

With the help of this innovative technology, several tasks can be accomplished:<\/strong><\/span><\/p>\n