Blockchain and opportunities in Real Estate Industry
Posted by News on January 24th, 2020
25 JAN 2020, Blockchain is a technology of trust and like how the Internet has made information open-source, blockchain is making trust Opensource” says Darshana Parmar, Credai Women Chairperson, and MD Ishwar Parmar group. As per the latest LinkedIn 2020 reports Blockchain is the #1 skill in Demand and Blockchain technology across the world, especially in India, is going mainstream On Jan 11th, 2019, CREDAI concluded its India’s largest Real Estate Conference Youthcon 2020 which saw over 600+ participants from all over India including Bollywood Celebrities Twinkle Khanna, Celebrity Nutritionist Pooja Makhija Fitness Trainer Yasmin Karachiwala and Micky Mehta.
The Youth on was inaugurated by Mr. Satish Magar Chairman and show stopper the keynote was by Prashant Surana on How Blockchain is creating tremendous opportunities in Real Estate Space. Mr. Surana is a Co-founder at Snapper Future Tech, India’s most awarded Blockchain Company and Serial Entrepreneur in AI and Blockchain. At 24 Mr. Surana was also awarded as #1 Super Young Achiever under 30 by Hindustan Times. Prashant is one of the most recognized Blockchain influencers globally and been working with Govt, Startups and Fortune Companies globally. The Keynote focused on how Blockchain can create the highest levels of trust, transparency and automated compliance driving India’s Proptech Revolution.
“Real Estate in India is in the horrible state today with over 5 million property registered in the past few years and out of which over 80% are less than 5 years old. That’s astonishing over 2537 cases registered every single day costing Country several billion dollars” Says Naresh Jain, Angel Investor and Co-founder at Snapper Future tech. Visionary Prashant presented an Interesting Case study and Success Story on “Real Estate Blockchain Solution developed by Snapper which became a remarkable Harvard Case Study. The solution highlighted the problem with traditional technology where all the govt departments worked in silos resulting in high data redundancy, frauds, inefficiency, and lack of transparency.
“The Process of property registration and mutation is super complex in India as every buyer has to go to the department to department to verify the title of the property first, pending taxation and other litigations thereby making buyers highly dependable on a middleman like lawyers, verifiers, etc. which is very time consuming + expensive. This is where the majority of the frauds happen, as fraudsters forge documents easily by getting access to original documents.
On the blockchain, one can share the verified information in a secured, encrypted environment without the need to share the original ones. Once the buyer verifies, sales deed has to be created and registered based on which the buyer applies for a loan. Today, it’s almost impossible to get loans from banks when buying Land only because of a lack of Conclusive title by Govt obviously because of litigation issues. Post which banks again verify the title ownership and make sure the information provided is correct. The bank hires 3rd party for this and pays as high as 50,000 with the process taking several weeks. With Blockchain as soon as the buyer-seller enters into a contract, the copy of the contract along with verification of property is shared with Banks in real-time by enabling primary source verification using Smart Contracts.
Smart Contracts are self-executable contracts which execute primarily on data and information as soon as event triggers. So here all KYC, compliances and verification documents are attached and blockchain verifies itself automatically like magic making the entire process seamless. Moving to registration and mutation, where the buyer is required to pay all taxes such as stamp duty, registration fees, etc. Currently, this process is made available online to a lot of extents, but fear of manipulation still exists as registrar sitting at the backend has the right to modify the records as per his will thus leaving buyer/seller/banks out of the loop. Several transactions in India go through via blackmailing and at gunpoint. With Blockchain using encryption and hashing this is prevented as records are tamperproof. So, any person trying to modify the records will fail as participants are notified to give their consensus and Blockchain like magical book records every transaction with digital signature and encryption, enabling only authorized stakeholders to view/modify.
Blockchain being magical book ownership records across municipal, land revenue, banks, etc. are updated in real-time with the latest details since all participants across share “Single Copy of truth” which is immutable, time-stamped, encrypted. “With Increasing Cyber Security Threats and ransomware attacks Blockchain is the answer because of its decentralization, Encryption” Shihas Kunju, Lead Faculty Indian Blockchain Institute, IBI is one of India’s Best Blockchain Institute driven by global partners and faculties with a vision to create India, a super force in Blockchain. Snapper has developed cool Block chain solutions Today, Snapper is followed by global icons such as Oracle, Hyperledger, it has grown from a small startup to a global Blockchain phenomenon adds Avnish Gupta, Executive Director Enemtech Capital Inc.
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