Whether you are planning to buy, sell or tokenize real estate, the property market and blockchain are deeply intertwined. As the acquisition of property has become possible with a cryptocurrency like bitcoin, it has the wider potential of blockchain technology to transform and totally disrupt the industry. The convergence of real estate and cryptocurrency is no longer the stuff of idle speculation, but a growing sector that has already begun to bear fruit.
According to the ICCC (Internet Crime Complaint Center), fraud in real estate in the United States for the period from 2015 to 2017 increased by 1100%, financial losses – by 2200%. Only because of the substitution of financial data bank accounts lost $1 billion in 2017, although in 2016 this figure was at $16 million during the deposit of funds in sales transactions, Americans.
The entire life cycle of real estate is easy to digitize or tokenize and transfer to the decentralized network like blockchain, so you can create a system where each property will have a digital passport with all the information about it: information about title documents, past owners, sales prices, dates of transactions, lease agreements, loans, service contracts and even the origin of building materials and their condition.
This information will be unchanged, remain protected and Market transparency will increase and prerequisites will appear for creating a rating system that will track the actions of all market participants and at the same time will provide only genuine information about counterparties. Combined, this will minimize the risks of fraud.
Some of the initiative like iNation и International Blockchain Real Estate Association (IBREA) back in 2015, merged to create a global database based on the blockchain on owners and transactions in real estate. The IBREA believes that the use of the blockchain:
– reduce the risk of fraud to a minimum;
– reduce costs and speed up transactions;
– internationalizes markets;
– increase financial privacy.
Another upcoming and promising project is Wolfs Group OÜ. Wolfs Group OÜ is listed on the stock market and licensed by local regulators from Europe. Unlike other blockchain projects, Wolfs Group has long been active in the market. Wolf Group is using a mixed investment model — the company specializes in both private and venture capital focusing on areas like
- Real estate (Wolfs Development),
- New technologies (Wolfs FPE) and
- Fintech (Ferpay Ltd.)
Ferpay Platform agreement has been signed with VISA and they will issue multicurrency cards and Cryptocurrency to fiat gateway. Wolfs Group has also bought automation companies for installation of Bitcoin ATM’S across Europe
According to Forbes “Despite the lack of stability on the domestic and European political scene, the investment market in technology companies is quite well. This is confirmed, among others, by the results of the Wolfs Tech Fund from the first quarter of 2017 with a 20% increase in the company’s assets.”