Land information is considered to be the most challenging database in history, with much of the information not shared online. However, blockchain technology is seen as capable of significantly reducing the cumbersome process of recording and updating the status of the site, ensuring full transparency.
Smarter, more transparent
One of the biggest impacts of blockchain on commercial real estate is creating a smoother and faster contract management process to promote transactions.
With a smart contract, all terms of the lease or sale contract are processed automatically and payments are made immediately – even beyond business hours.
Blockchain has the ability to “create, authenticate, and audit global contracts as needed and without interference from any intermediate entity,” said Ashley Perry, JLL Project Manager.
Smart contracts have terms in the deal, so payments can only be made in accordance with the terms, making the transaction universally transparent for all parties and minimizing payment risk.
Smart contracts also help speed up the pre-transaction evaluation process. Blockchain technology access to the parties information, laying the foundation for information verification process faster. Parties to the contract can access the network with a personal digital key, reducing the possibility of fraud.
Aaron Ahlburn, director of industrial research at JLL, says that in industry and logistics, the transparency of blockchain benefits both investors and tenants. Especially as corporations expand globally, supply chains become more diversified and more complex. The challenge of tracking inventory will also become imperative.
“With day-to-day delivery becoming more common, technology will help e-commerce and retail companies significantly improve their traceability capabilities, which will help companies reduce inventory. In the long run, technology will deliver great value to the retail, distribution and logistics industries as they handle a tremendous amount of database traffic each day. ” , Ahlburn said.
Easy access to land status history records
Another landmark of blockchain technology is its use to store information about the land – the most challenging database in history, with much of the information not shared online.
This technology has the potential to significantly reduce the cumbersome process of recording and updating the status of the site, ensuring full transparency. And the reality is that more and more governments are looking to adopt security ledgers as a way to store and easily access historical status records.
~~>>Update on new information on the real estate news in Vietnam here: Vietnam real estate news
For example, the British government recently announced plans to move its land registration office to blockchain in 2022 as “Digital Street”, while Sweden, Ukraine, Dubai and the Republic of Georgia is testing this technology.
“As with any other new technology, blockchain has also been criticized. A series of questions about the safety and reliability of this technology have been raised, as well as the issue of human error; Used as a database, the input information must be accurately recorded from the beginning.
“When technology is used more commonly, these issues will be resolved, and then the technology will rationalize the complex and traditional commercial real estate industry,” said JLL. .
You are reading the article Blockchain will defeat the ‘biggest challenge in history’ in the real estate sector in the Real Estate category at https://realestatevietnam.com.vn/.Any information sharing, feedback please email to email@example.com, Hotline 0909890897 (24/7).