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This article will definitely put questions in someone's brain. This is the last point we described in the article Can Distributed Ledger Be Helpful For Open Real Estate: here -"Benefits of using Distributed Ledger in Open Real Estate"- and I took inspiration as well from one of my friend's experience.
We are at the very beginning of this technology and we believe this can happen. Traditionally, property ownership and management have been centralized. However, the centralized model has several limitations. For example, property disputes can be costly and time-consuming affairs that often require intermediaries to resolve. As well as, intermediaries such as real estate agents or property management firms can charge exorbitant fees, which can significantly reduce the returns on investment. At the same time, centralized systems can be opaque and non-transparent, leading to information asymmetry among parties involved in property transactions.
Distributed ledger technology, on the other hand, offers a solution to these challenges by providing a transparent, immutable, and decentralized system for managing property ownership and management. One of the core features of distributed ledger technology is the ability to create tamper-proof records of transactions, which can be verified by multiple parties, thus providing a high level of transparency and accountability.
One of the key benefits of using distributed ledger technology in property ownership and management is the reduction in the risk of disputes. By recording all property transactions, such as sales, rentals, and leases, on a transparent and immutable ledger can reduce the risk of disputes and ensure that all parties have access to the same information.
Another benefit of using distributed ledger technology in property ownership and management is the increased efficiency it provides. With a decentralized system, Landlords, Property owners and managers can use smart contracts, which are self-executing contracts that automatically execute once predefined conditions are met. Smart contracts can provide proof of ownership and automate tasks such as rental payments, maintenance, and repairs, saving time and money while providing a faster turnover.
Turnover is defined as the percentage of a portfolio that is sold in a particular month or year. ScanSan gives Landlords, Property Owners and Real Estate Agents an opportunity to increase their turnover rate, a quick turnover rate generates more commissions for trades placed by a Landlord, Property Owners and Real Estate Agents. Turnover is a synonym for a company's total revenues, so if the turnover increase then the total revenues increase. ScanSan helps investors to place their investments in a more stable property market and helps Landlords, Property Owners and Real Estate Agents to do their job faster without pitfalls.
Furthermore, distributed ledger technology can provide a more accessible way of managing properties. The decentralized nature of distributed ledger technology makes it possible for anyone to participate in property ownership and management. For example, individuals who previously could not afford to invest in real estate due to high entry barriers can now invest in fractional ownership of properties using cryptocurrency or fiat or other digital assets (invest now for your future). Fractional ownership can enable individuals to invest in properties and benefit from rental income or capital appreciation without owning the property outright.
In conclusion, distributed ledger technology can enable the decentralization of property ownership and management, offering significant benefits such as the reduction of disputes, increased efficiency, increased transparency, and accessibility. While the technology is still in its early stages, it has the potential to revolutionize the real estate industry, making it more accessible and efficient for all parties involved. As the technology matures, we can expect to see more innovative use cases and applications that will transform the way we own and manage properties. Alessio believes in sharing knowledge while creating the next generation of wealth. Knowledge is power.
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