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Friday, May 24, 2019

Real Estate Investment Support via Blockchain

Brought to my attention to support a potential project, examining motivation of block chains, their architecture and integrated smart contact use.

For Real Estate, Blockchain Could Unshackle Investment
A special interest group with the Enterprise Ethereum Alliance is detailing opportunities and offering examples of how blockchain can create new real estate markets. .... "   By Lucas Mearian  Senior Reporter, Computerworld  .... "


And a PDF on Real Estate Use cases by using tokenization of investments and agreements:

 .... Blockchain as an Enabling Technology

One of the benefits of blockchain technology, and security tokens in particular, is that it offers away to buy and sell properties in more granular pieces. A property, for example, can be divided into individual investment units each identified and embodied via a security token (via the ERC 20 or ERC 721 specifications or a variant thereof). These tokens will identify ownership, provide a mechanism for transactional processing, and serve as the property identifier to allow for trading on regulated secondary markets. ....  " 

And talking the value of smart contracts (p.9)

"... By utilizing smart contracts, the whole agreement can be automated and payments can be sent and received instantly. A smart contract (deployed on a decentralized blockchain network) can make it possible to write, authenticate, and audit agreements in realtime. This can be done on a global scale and without the need for intermediaries, thus keeping the value between the main parties involved in the deal. Within the smart contract (which is typically publicly available for anyone) the instructions and dependencies are clearly defined so payment can only be executed as long as these conditions are fulfilled. This gives greater transparency to the parties involved and theoretically reduce the number of disputes. Smart contract processing also has the potential to reduce the risk of fraud, as digital identity verification will be a step in the process and only allowed parties can interact with them using their private keys. Every node within a blockchain network is continually validating all transactions in the blockchain thereby reducing the likelihood of a fraudulent transaction. ... " 

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