Revolutionizing Real Estate Industry in the Philippines
A new era in the real estate business has begun due to a new technology being introduced in the network of the digital world. One of the most highly regulated industries, real estate, is being revolutionized by the blockchain technology. This has taken the previously underrated important features of the cloud computing and incorporating them together, creating a secure and reliable ecosystem of data recording. C Estates Inc, a real estate company is using these combined technology and principles bringing advancement to the real estate industry today.
Secure Public Ledger
The blockchain being a digital ledger with impregnable memory, it can also store information and securely allow access of data to authorized members. And while none of the significant information in the database can be erased or altered, every footprint however, is verifiable by all members in the chain. In the traditional way, getting information to validate a property via the Multiple Listing Service, is extremely challenging because of the restrictions placed by the owner of the listing. Today, these can now be safely accessed by using the blockchain technology. There is no need to worry about no one guarding your information as a user’s footprint can easily be traced and are exposed publicly, 24/7. Attempting to steal would be a pointless exercise as everybody can see what you’re doing and where you’re going. Thus, any fraudulent activity can be impeded once unusual activities are detected.
In buying, selling and production of real estate, legitimate documents are among the greatest concerns. Blockchain technology can virtually store property titles and other important private data through smart contracts where credible transactions are facilitated digitally making settlements done instantaneously and secured.
The “Smart Contracts” used in the blockchain network is an application which permits trusted transactions and agreements to be carried out by the buyer and seller. These coded transactions are deemed to be secure as these are traceable, transparent, and irreversible. Additionally, legitimate documents and information are validated by multiple parties so that the risk of fraud is eradicated.
Georgia, for example is the first country to convert its land register to Blockchain while Sweden is also among the several countries that successfully pilots the use of blockchain technology in government documents such as land registrations and titles.
Digital Money
The mode of payment in real estate is also evolving. In every blockchain network, cryptocurrency has been formally introduced to the public and now used as a currency also known as “digital money”. These days, some property owners accept cryptocurrency as mode of payments, such as the recent case in Texas where the deal was done in a matter of 10 minutes.
Financial Technology
Nowadays, many other industries are starting to see the potential of the blockchain as a way to reduce money transfer costs and make processes more efficient anywhere in the world.
In the Philippines, banks are considering more than the traditional methods. The Bangko Sentral ng Pilipinas approved 2 companies in 2017 that handle Cryptocurrency Exchanges. Together with this virtual technology acceptance in the country, the Cagayan Special Economic Zone and freeport opened its doors to as many as 25 cryptocurrency exchange operators in its tax-friendly jurisdiction.
(update: There are now 7 crypto-related companies approved by BSP as of October 2018.)
The BBVA, a Spanish bank has carried out a pilot project using blockchain in their loan issuing process. The result of the trial is an estimated 40 to 50 percent of time saved. This clearly indicates that housing loans and mortgage transactions can truly become extremely efficient. Even Commercial Real Estate owners have started accepting these alternative way of payment for guests to access their facilities. Advocates of the virtual money can now enjoy cruising, scuba diving, horseback riding and so much more in resorts with just a blockchain wallet and wireless connection.
Crowdfunding
Another attracting change in the Real Estate Industry is the “Tokenized Real Property”. It is a digitized crowdfunding method for people to participate in investing in real estate operated by property management corporations such as hotels, resorts, casino, offices, etc.
An example is the special type of corporation called Real Estate Investment Trust known as “REIT” that acquire and manage these kinds of real estate assets. A brokerage is where an investor can buy his participation certificate on REIT just like how others can buy stocks or bonds.
To get involved in Tokenized Real Property is not difficult, the C Estates Inc, platform has straightforward processes to allow you to invest with ease. A property management company can list its income-generating property on the C Estates platform which will be assigned with its fractions of assets called the Digital Property Asset (DPA). This DPA is readily available for sale and people can buy and can own it in real time. The new owner of DPA can earn in 2-ways. One, is to earn from the yield of the property or sell the DPA at a higher price. Both of these ways continue to generate income for the property management company.
As money and data can now be shared securely and efficiently, and transactions are mobilized by cryptocurrency on blockchain networks, undoubtedly, a potential beneficiary of this revolutionized technology driven techniques is the real estate industry.
