Blockchain, Blockchain, Blockchain – it’s everywhere. If you are still wondering what’s up with this crazy technology mania, then this is probably not the best blog post that you should be reading.
Check out our previous blog posts on Blockchain for beginners, and then this would make much more sense.
So as promised in the last article, today we are gonna dig deeper on how Blockchain can disrupt the Real Estate and Automotive Industry. So let’s get started.
It won’t be a news for you if I tell you how inefficient the Real Estate system is. Anyone who has ever tried to buy Real Estate is aware of the lengthy procedures, mind-numbing paperwork and the expensive fees of the middlemen like brokers, lawyers, inspectors and the list goes on and on. Couple these things with forged documents and property fraud cases and you have a system that is utterly broken.
If I had a magic wand, I would make this all go away. But neither I am a magician, nor I have a magic wand – What we do have is Blockchain, and here are some of the things that we can do with the help of that:
- Cutting Out The Middlemen –Ethereum can be used to create a Digital Title for any property. Due to the immutable and secure nature of the Blockchain based Ethereum Platform, you will be able to effortlessly transfer the Digital Title, verify the property records yourself and eliminate the third-part verification all together.
- Reducing the Risk of Fraud – Using Blockchain technology, you can upload your title documentation and get it verified by the other users in the network. While this will ensure that you are the real owner the property, the immutable nature of the Blockchain will prevent any chances of getting your documents forged.
- Complete Transparency – The traditional approach to buying, selling and renting of properties is extremely slow due to administrative processes. With the use of smart contracts and Digital Title of a property, this process will become seamlessly easy, safe and fully transparent.
Emerging Real Estate Blockchain Platforms
Let us now have a look at some of the Blockchain platforms that are leading the race to revolutionizing how the Real Estate Industry operates:
One-of the hottest Blockchain based Real Estate start-up, SMARTRealty has launched its ICO to allow people to buy, sell or rent properties using Smart Contracts.
As you must be aware, creating a Smart Contract is not a piece of cake. To address this issue, SMARTRealty provides contract creators with templates that can be customized as per their specific transaction and that complies with their locale state jurisdiction. So in essence, SMARTRealty platform allows users to solidify their agreements using Blockchain technology instead of traditional contracts.
People at SMARTRealty believe that it’s not feasible to disrupt the Real Estate Industry in one go. They believe the only way to move forward is through small incremental changes and they are partnering up with big players like MLS and various Real Estate Brokerages, and bringing them onboard with using Smart Contracts for renting or leasing a property.
Their philosophy certainly makes sense, and I wouldn’t be surprised if they are one of the big players that end up revolutionizing the Real Estate Industry.
Most of the millennials prefer renting an apartment, instead of buying a place of their own and according to Business Insider report, millennials home ownership rate have fallen faster than any previous generation.
So as more and more people are looking to rent a place, Rentberry came up with an elegant solution to meet this demand by making the process of renting fully transparent, easy and secure.
Rentberry is not a conventional Blockchain start-up, in a sense that it already had a user-base of tenants and property owners before they decided to adopt block-chain technology. Launched in early 2017, Rentberry quickly gained attention in the Real-Estate Industry and acquired a steady user base.
Having raised $30M in its Initial Coin Offering (ICO), and already being listed by Forbes among Top-10 ICO in 2018, Rentberry has already established itself as a major upcoming player in the Real Estate Industry.
Rentberry launched its ICO to generate funds to expand globally and reduce the inefficiencies and insecurity present in their existing platform.
Although there are many listing and classified ads platform like Craigslist, Zillow, etc. to find properties, they provide very little information about the property and no further support in the renting process.
Rentberry also uses the same approach of allowing property owners to list their properties, but they take it a step further by getting involved in the Renting process as well, and presenting itself as a one-stop-shop for all the users’ need.
They promise to solve the problem of cumbersome rental applications, bidding wars with other potential tenants, additional fees that needs to be paid to middlemen like brokers and frozen security deposits.
Apart from this, they also have a review and rating system and the tenants and landlords will be able to view the past history of each other. And the Blockchain platform will be responsible for much needed security for securely storing all the information.
Having packed so many unique features in its arsenal, Rentberry platform may very well revolutionize the Rental Industry this year.
Founded in 2016, Atlant is leveraging Blockchain technology and cryptocurrency to provide two major services – Tokenized ownership and P2P Rentals.
P2P Rentals is one of the direct application that comes into mind when using Blockchain for Real Estate industry. However, what separates Atlant platform from the rest is the unique concept of Tokenized ownership of a property, which will allow anyone to invest in trading of residential and commercial properties.
So here’s how this works, once a property has been legally verified and is listed for sale on the Atlant platform, the value of the property will be divided in tokens, where 1 token will be worth 1 millimeter square of the property.
What this means is that the property can be owned by multiple investors, which will make selling and buying properties easier and instead of investing a lot of money on a single property, people will be able to diversify their investments.
And with its P2P Rental service, Atlant aims to reduce the commission charges that big players like AirBnB charge renters and landlords.
Atlant is built on Ethereum Blockchain and it raised 6.5M in its ICO. There is a huge potential in this platform and it would be really interesting to see how much innovation it can bring in this industry.
Automobile Companies have never been shy of adopting new groundbreaking technologies to find solutions in different sectors such as logistics, manufacturing, customer support, supply chain, sales and everything in between. Having an annual growth rate of 4.8%, and it’s ever increasing popularity across all geographies, Automotive industry is one of the breeding ground of technology innovations. Needless to say, Blockchain technology can drastically transform the automotive industry as well. Add IOT to this equation, and you can count on some crazy innovations in the coming years. For instance, using smart contracts and IOT, will enable dealerships to automate most of its processes involved in car sales, processing warranty claims and so on.
Moreover, as Blockchain itself acts as a trustable middleman, buyers and sellers will be able to directly engage in transactions with each other or claim insurances without involving any third-party. Also, the transparent and immutable nature of decentralized ledger will bring much needed peace of mind to all the involved parties – customers, manufacturers and service centers. Some of the practical applications of using Blockchain technology in Automotive Industry are: Targeted vehicle recalls, Identification of counterfeits, automated insurance claim processing, crypto tokens to provide loyalty rewards, faster transactions and maintaining authentic service records.
A safe and secure record of the service logs and all the parts of the vehicle will also help manufacturers to accurately estimate the re-sale value of vehicles.
Now, let us have a look at what this means for:
- Car Owners:
- Access to tamper-proof car history
- Making more informed decisions while buying a second-hand vehicle
- Fast and streamlined insurance claim process
- Lower transactions costs by cutting out the middleman
- Better car-related service quality
- Transparent supply chain
- Targeted vehicle recalls for replacing defected parts
- Track and verify vehicle parts
- Leveraging smart contracts to facilitate financial transactions
Here’s how you can take advantage of this:
- Follow informative blogs like IBM-Blockchain and yours truly – Blockchain: Wisely, to stay ahead of the curve.
- Participating in ICOs of promising start-ups like Vinchain and VLB.
- Coming up with a unique idea that provides a solution to the challenges faced by the Automotive Industry and launching a Blockchain start-up of your own.
Vinchain – Emerging Automotive Blockchain Platform
Vinchain is a Blockchain based platform that aims to create a global decentralized database of used vehicle information which is 100% reliable, tamper-proof and accessible to everyone.
In simpler terms, Vinchain will collect data about vehicles from various trustable sources and the users will be able to access all the information related to the vehicle in a single place, and Blockchain will ensure the security and immutability of this data.
It will also allow consumers to contribute to this repository of data by plugging in a OBD Device into their vehicle, which will collect the data about the vehicle in real-time and the users can later use this data to increase the price of their vehicles while selling.
Also, it will simplify the communication process regarding the car information. What it means is that if you want to access a report of the vehicle that you are planning to buy or you want to share the data about your vehicle with an insurance company to negotiate a better policy rate.
Vinchain was able to raise 12570 ETH in its ICO and with this financial backing, they are set to radically transform the automotive industry.
So folks this is it for today. Let me know which of the above platforms seems most promising to you in the comments sections below. In the next post, we’ll have a look at some other industries that can blockchain can disrupt.