SAN FRANCISCO/ APRIL 22, 2019 (STL.News)
Investing in real estate has long been seen as a practice indulged in by the wealthy because of the high expenditures it entails. Innumerable legal documentation, a string of meetings with realtors, agents, and lawyers, keeping a paper trail of the fluctuating market prices – all come at a cost. Since real estate development will not be slowing down anytime soon, good news comes in the way of new tech for aspiring investors. California-based blockchain company HashCash Consultants is taking its line of blockchain products and services to the real estate sector, becoming one of the first companies of its kind to do so.
As said by Raj Chowdhury, MD of HashCash Consultants, “The implementation of smart contracts in blockchain is a game-changer. It can decentralize and automate much of the tasks performed by physical lawyers, significantly cut down operation time and cost, and mitigate fraud.”
The Benefits of The Blockchain Solutions Provided by HashCash Include:
1. Accumulation of industry requirements to accordingly deploy blockchain products – The blockchain incorporates algorithms designed to address the pain areas of the business processes through Smart Contracts. This usage is just one of the advantages of a set of services which also include documenting technical GDPR compliance requirement and developing a product roadmap.
2. Technical Designing – The team of experts at HashCash draws up Smart Contracts definition documents, designs and creates data flow diagrams and technical architecture, and creates sprints and delivery milestones for their clients.
3. Deploy Smart Contract on Ethereum –The complete production of Smart Contracts, including the development of Smart Contract structure at Alpha and Beta Levels, and completing candidate release before the final launch, is done by HashCash.
4. Upgradation – Smart Contracts are implemented on the Main Network, and priority is given to its backlogs.
5. Technical Support – The blockchain company provides online technical support, offline support in specific areas, and progressively adds new technical features.
What Are Smart Contracts?
A smart contract is a computer code running on a blockchain that facilitates, verifies, and enforces the negotiation or performance of an agreement or transaction. The enforcement of the agreement is automatically triggered when the pre-defined rules are met. Smart contracts nullify the role of unnecessary intermediaries and their related costs.
Major Drawbacks of the Real Estate Industry:
Three primary disadvantages weigh down real estate investment, which are:
1. Reliance on Intermediaries – According to a survey conducted by the National Association of Realtors, 80% of property buyers in the United States depend upon intermediaries and pay the customary minimum of 6% of the total cost of the real estate asset as fees.
2. A Dearth of Affordable Funding Options –The real estate market is expensive and is steadily getting out of reach of the mid to low-income demography.
3. Prevalence of Fraud – Lastly, the scarcity of trusted platforms to verify real estate documents has caused the proliferation of commercial real estate-related fraud such as title fraud and online sale scams. This predicament is one that is present in a majority of the nations.
Solutions to These Problems Proposed by Blockchain:
The very make of the distributed ledger technology has positioned blockchain and its smart contract protocol to address and rectify (to a considerable extent) these challenges in the real estate industry. Here is a quick look at the targeted areas of improvement:
Transparency and Trust: Information once added to a blockchain database cannot be altered without the consensus of the majority of network participants. This permanence eliminates chances of making unauthorized changes to the stored data such as valuation details.
Siloed Databases: The distributed ledger streamlines storing and sharing of data from a pool of stakeholders. It provides a secure and reliable platform that updates the shared database in real time.
The efficiency of transaction processes: Real estate transactions widely depend on methods such as wire transfers that call for time-consuming and highly chargeable verification processes. Blockchain-based transactions bring in the advantages of decentralization of the verification system which does the same work in a fraction of this time, and instantaneously in networks such as HC Net. The costs, too, are consequently reduced.
Dependence on intermediaries: Smart contracts automate most of the processes executed by intermediaries, including verification of transactions and other legal documentation. Using blockchain-based approaches to store and distribute records would render the need for third parties — from brokers to escrow companies — obsolete. The resulting cut-down would dramatically reduce costs.
The Future of Blockchain Real Estate
Blockchain could revolutionize the pace and efficiency of how real estate transactions are handled in the coming years. The processes of land registry and payment systems could stand to see massive improvements if executed on a blockchain network. This technological evolution in the real estate industry is no longer just a theory in print, as changes already noticeable in the initiatives taken by blockchain companies such as HashCash Consultants.
About HashCash Consultants:
HashCash Consultants started as a Blockchain Consulting Company in California. Today, HashCash products enable enterprises to move assets and settle payments across borders in real-time using HashCash Blockchain network, HC NET. Financial Institutions use HC NET for Retail Remittances, Corporate Payments, Trade Finance, and Payment Processing. HashCash also runs the US-based cryptocurrency exchange, PayBito and the leading Cryptocurrency payment processor, BillBitcoins.
HashCash offers cryptocurrency exchange and payment processor white label solutions, comprehensive ICO services and customized use case design and development. HashCash propels advancement in the field of blockchain through the Blockchain1o1 program and its investment arm Satoshi Angels