How the Blockchain Technology
Will Change the Real Estate Market
Blockchain is one of the most heard and least understood terms of the 21st Century.
Blockchain is everywhere! You’ve surely heard a lot about blockchain, bitcoin or Ethereum. You may have even heard that Malta is called Blockchain Island.
However, the concept of Blockchain is unclear to most people, as are the reasons why Malta has opened up to it so eagerly, indeed before any other state in the European Union.
- So what is blockchain?
- Why is everyone talking about it?
- Why does Malta invest in it and believe in it so much?
- And above all, what advantages does Blockchain offer the real estate market?
Let’s make things clearer
To better understand blockchain, let’s start by eliminating the most common point of confusion: Blockchain isn’t Bitcoin or any other type of cryptocurrency.
Rather, it’s the technology through which cryptocurrencies come to life. Let’s use a practical example. Bitcoin is to blockchain what pizza is to an oven. The oven is the means by which the pizza is cooked; essentially, it’s what allows the pizza, as we love it, to exist. There can be an oven without a pizza, but there can’t be a cooked pizza without an oven, just as there can be blockchain without bitcoin but not the other way around.
Now that we’ve clarified what it isn’t, let’s try to understand what it is and why everyone is talking about it.
Blockchain technology is an open register of shared, decentralised and disseminated information. More technically, it’s a database that’s structured in blocks distributed over different network nodes instead of on a single server.
In a nutshell, blockchain is the electronic version of a paper registry and has the task of archiving data and transactions.
What are the advantages compared to a traditional registry?
Blockchain’s main features are registry immutability, transaction traceability and security based on cryptographic techniques.
Basically, blockchain is the digital version of a new form of trust, so much so that some people think it can also have social and political value.
From that perspective, blockchain must be seen as a tool that allows the development and the concretisation of new forms of social relation, which, if everyone participates, can guarantee people the possibility of verifying or controlling so that there is total transparency regarding acts and decisions. Such acts and decisions are recorded in archives that are unalterable, immutable and immune to corruption.
Blockchain is therefore much more than a simple electronic registry.
Now, let’s try to understand why Malta is betting on blockchain more than any other state in the European Union.
Malta’s relationship to blockchain is a marriage of interests
Blockchain needs Malta, and Malta needs blockchain. The love between the two sides is beautiful, useful and necessary.
In fact, in Malta, blockchain has found the fertile ground it needs: a growing economy, a mindset open to progress and technology and an ideal meeting place for personalities from around the world.
For its part, Malta found in blockchain an instrument of coordination, control and regulation, all of which are necessary given how life has developed in recent years.
Blockchain’s use in Malta can act as an example for all of Europe, proving that various aspects of the market can be secure, fast and efficient if the technology is used.
How can blockchain disrupt the real estate market in Malta?
Its advantages are simple: regulation through innovation.
Critical problems in the real estate market include a lack of transparency during and after transactions, excessive paperwork, susceptibility to fraud and errors in public documents.
Blockchain offers a way to reduce the need for paperwork by recording data, and it can therefore lead to the acceleration of operations related to the drafting of contracts, the identification of third parties and the precise details of the assets traded.
When applied to the real estate sector, decentralised blockchain databases can help record, control and transfer ownership deeds and rights, among other things, and it can help ensure that documents are accurate and verifiable.
Now, let’s talk about our platform. Kera is an online real estate brokerage platform that supports users in all phases, from research to property management.
Our start-up was born in Malta with the aim of making the real estate market more transparent, secure and accessible to all. We envision a market without barriers related to distance, excessive bureaucracy and the omission of crucial information.
More specifically, we decided to apply blockchain to the real estate world so it could help with everything from transaction traceability to the drafting of certified contracts, from document delivery to logging the history of a negotiation, all to protect both parties involved in a deal.
The new real estate era is happening, and it’s happening in Malta.
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