How Is Blockchain Technology Disrupting Real Estate Industry Training Ppt

Slide 1

This slide highlights the concept of blockchain. It also showcases the multiple uses of smart contract applications within the real estate industry, such as utility, liquidity, provenance, risk management, and efficiency.

Instructor’s Notes:

The uses of smart contracts in real estate industry are:

Utility:

Liquidity:

Provenance: 

• It provides an immutable audit trail of ownership for a real estate asset such as
  • Entire transaction history 
  • Metadata on further improvements

Risk Management: 

• The smart contract helps homeowners or real estate agents protect themselves against a decline in the projected value of homes within geographic regions
• It can be achieved by building on-chain derivative products

Efficiency:

Slide 2

This slide illustrates the solutions provided by blockchain in real estate related problems. It also determines types of difficulties in real estate in which blockchain helps such as expediting the process of searching for property, improved due diligence and financial evaluation, proper management of file and payments, property management, transparency in deed management, and effective real estate investing.

Instructor’s Notes:

The solutions blockchain provides in meeting real estate challenges are:

Faster Property Search:

• Blockchain technology-based system helps decentralize data and enables data sharing in a P2P network
• It helps cut down associated costs by facilitating the brokers in receiving additional data monitoring options

Improved Due Diligence and Financial Evaluation:

• The use of blockchain technology helps to store all the property-related papers digitally and can be accessed publicly, but cannot be changed
• This makes due diligence and financial evaluation process automated, accurate, and fast 

Proper Management of File and Payment:

• The filing process can be simplified by using blockchain-based application
• It helps in bringing transparency in real estate processes by introducing verifiable digital identities for properties

Property Management:

• With the use of blockchain in the property transaction process, real estate industry can be transformed
• Blockchain property management system uses smart contracts to ease the process, from signing lease agreements to regulating cash flow and filing maintenance requests
• It helps automate the payment process between the landlord and a tenant from the start of lease agreement to the end; then, it automatically returns the security deposit back to the tenant

Transparency in Deed Management:

Effective Real Estate Investing:

• Blockchain-based system helps the investing process by using the tokenization and fractional ownership concept
• Tokenization is a digital token provided to the owner having a share in the property
• Fractional Ownership is the process of making all the unrelated parties come together to analyze the risk related to investing in real estate

Slide 3

This slide illustrates the comparison between the different challenges of real estate with or without the use of blockchain technology. They are compared on parameters such as property search, due diligence and financial evaluation, file and payment, property management, deed management, and real estate investment.