SMARTRealty Ties Smart Contracts Into Real Estate Transactions
When Bitcoin was first created, the world wondered whether financial assets could actually be stored in decentralized technology. From there, Ether separated the idea of “smart contracts” and made the ERC-20 smart contract for developers to utilize. Ever since then, “smart contracts” have become ubiquitous in the cryptocurrency space, with almost everyone trying to bring contracts onto the blockchain.
One of the important things to remember for all technology products, is that there needs to be a reason for the technology to exist. In order for a contract to be better on the blockchain, the real world alternative needs to failing in some capacity. Immediately this cues real estate as a great industry for disruption. SMARTRealty is launching an ICO to introduce an option to buy, sell, or rent via smart contracts and allows you to pay with cryptocurrency.
Real estate contracts struggle to capture specificity and typically do not have any strong enforceability. If a landlord says there was “significant damage” to an apartment, no matter how much the tenant disagrees, the only way to get a security deposit back is via the court system. In order to prevent these complex problems, there need to be two components to a real estate contract.
Firstly, a real estate contract needs to have strictly enforceable standards. This means there needs to be a “meeting of the minds” between parties of what is expected and how the transaction will be evaluated. SMARTReality allows for anyone to log on to their platform and begin negotiating with others on relevant terms. Once have been settled, the smart contract commences.
Secondly, real estate contracts need to have independent enforcement. When determination about quality and who gets what is left to the players in a contract, they will be incentivized to skew things in their favor. Whether that means putting extra wear on an apartment or potentially faking real estate inspections.
In order to prevent this, SMARTRealty’s smart contract utilizes SMARTRealty’s algorithm to confirm what necessary specifications have and have not been met for any given contract and disburse funds accordingly. Since people, must first put up necessary funds, this prevents anyone from after-the-fact refusing to compensate for a term of the deal.
Once the platform launches their ICO, they will allow individuals to begin listing properties and anyone can buy or rent from there. Additionally, their timeline notes partnerships with the MLS as a major future milestone and further pushing for mass market partnerships. These will be crucial for allowing their platform to gain the necessary volume and legitimacy it needs to truly convert a sizable chunk of the real estate market onto the blockchain.
The company has noted that there is an increase in the number of people renting single family homes and that the rate of home ownership has dropped over. This means rental contracts, primarily for millennials are an important thing to redefine. SMARTRealty allows for rental agreements to have automatic renewals and payment structures, and also helps regulate first/last month rent, utilities costs, and more to let renters know they can have trust and transparency while renting. This is particularly beneficial, since millennials are actively looking for ways to translate their cryptocurrency wealth into real world transactions.
The cryptocurrency world has evolved drastically since Bitcoin was first released. As people have realized the value held in decentralized smart contracts, new products have launched to tokenize every process. SMARTRealty’s approach to enforcing real estate contracts is a unique way to bring drastic levels of trust and transparency to a industry that drastically needs it. Anyone considering entering a real estate contract should consider SMARTRealty as a potential option for ways to help improve the process.
The author has had a working or personal relationship with one or more companies mentioned in this article in the past. Access to mentioned company’s management and information was made through the author’s personal network. All information was vetted prior to posting.
This essay is not intended to be a source of investment, financial, technical, tax, or legal advice. All of this content is for informational purposes only.