Crowd building: how to build your own housing on the blockchain
Investments in the construction sector have started to gain popularity relatively recently. In the second half of the 20th century. This was due to economic growth when it became profitable to have a living space that can be rented or premises for commercial purposes.
Blockchain performs well in terms of security and data storage. Investments in blockchain became huge, and crypto enthusiasts began to look for ways to apply this technology not only in the framework of trading on the exchange and payment systems.
Real estate is also a great use case for blockchain. She has long needed convenient mechanisms for interaction between developers and investors.
Blockchain offers its own solution — smart contracts.
Full transparency can be achieved with smart contracts. Smart contracts are electronic guarantors of obligations that ensure transactions are carried out on the blockchain.
Another important feature is that all transactions on the blockchain are irreversible and cannot be changed. Consequently, the security of contracts increases significantly. If any of the parties cannot fulfill their conditions, the smart contract will reject the transaction.
How will it work in real estate?
For example, the developer offers a number of conditions regarding the place of construction, prices for an apartment / square meter, construction time, etc.
In turn, investors can agree or reject the terms of the developers and find others who will offer better terms.
When investors and developers enter into a contract, it is formalized in a smart contract and stored on the blockchain.
This ensures trust in both developers and investors. Both parties have a guarantee of performance.
Thus, blockchain solves an old problem in real estate and opens up a number of the following benefits:
- Absolute transparency of the system. All transactions are visible through the explorer and anyone can view them
- The impossibility of making changes to the deal “retroactively”.
- Payment with cryptocurrencies is much more convenient since it does not require filling out many documents.
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