Rental real estate represents itself as a complex and multi-level process that is regularly accompanied by diverse problems. In the last few years, there has been significant growth in the number of fraud cases. From 2010 to 2020, the number of cases of fraud in market rental increased by 35% in the majority of large cities in the world. Fake documents, illicit requirements, and double booking objects — are only a small part of the problems that participants face in the market. Disputes between landlords and tenants often arise due to disagreements on conditions of rental, state property, and size rental fee. In these conditions, there appears to be an acute need for innovative and reliable solutions capable of minimizing risks and raising trust between participants. Rent a car in Dubai also faces similar challenges, requiring high standards of reliability and transparency.
New Horizons: Blockchain-Technologies in Real Estate
Blockchain — this innovative technology represents itself as distributed registry data. In 2021 year, the volume market of blockchain technologies in the field of real estate was assessed at 210 million dollars in the USA and is forecasted to grow to 3 billion dollars in the USA by 2030 year. The main properties of blockchain include immutability, transparency, and reliable data, which makes it an ideal solution for applications in rental real estate. The fact remains that data recorded in blockchain is impossible to change without the general consent of the participants’ network, which excludes the possibility of manipulations and raises trust. More about blockchain.
Advantages Blockchain in Rental: Deep Analysis
- Transparency and reliability: Blockchain creates immutable registry all transactions. A transparency system reduces the likelihood of disputes and raises the level of trust between parties.
- Protection data: Use cryptography for protection data raises their security. For example, in the 2022 year, 70% of companies using blockchain noted a reduction in the number of cases of unauthorized access.
- Automation with help smart-contracts: Smart-contracts automate process rental. They execute conditions contracts automatically; for example, rental fees can automatically be deducted upon fulfillment of conditions of rental.
Cases Successful Application Blockchain: From Sweden to Propy
In 2019, Sweden conducted an experiment on the implementation of blockchain in transaction rental. In the course experiment, the average time processing transactions was reduced by 50%, and the number of errors was reduced by 25%. Platform Propy — a bright example of the successful application of blockchain in real estate. In 2020, through Propy, more than 10 million dollars were spent on USA transactions, which allowed reduced costs on intermediaries by 15% and accelerated processes by 30%. blockchain in real estate.
Overcoming Limitations Blockchain in Field Real Estate
- Legal barriers: Non-recognition smart-contracts. In 2023, only 40% of countries had legislative norms for the use of blockchain in legally significant processes.
- Technical complexities: Scalability systems. In 2022 year, 60% of startups voiced problems with the integration of blockchain in existing systems.
- Resistance market: Traditional methods prevail. 50% of the participants still prefer to work according to old schemes.
Future for Blockchain: Opportunities and Prospects
Predictions say that legislative initiatives will promote the wider use of blockchain. By 2025, it is supposed that 60% of countries will adopt special legislative acts for the integration of blockchain in legally significant processes rental. Technical developments will directed at the improvement of scalability and integration systems, which will accelerate the implementation of blockchain. From a long-term perspective, blockchain can become standard for management rental real estate, providing security, transparency, and efficiency in all processes. Research on future blockchain in real estate.
Transformation market rental with help blockchain — this already not question distant future, but reality, to which need strive already today. Reduction risks and raising reliability — main pluses, which not worth missing from view. Blockchain has potential transform market and make it more secure and reliable as for landlords, so and for tenants.
Hello! My name is James Carter, and I am a passionate photographer from England. From the moment I first took a camera in my hands, photography became for me not just a profession, but a way to see the world. From spontaneous street shots to breathtaking landscapes – I dedicate my life to capturing the beauty surrounding us.