Blockchain technology is gaining momentum in the use of property management. This is evident from the two Norwegian companies DNB (a bank) and OBOS (a property developer), from developing a prototype solution for using blockchain technology in the property management industry. Blockchangers have done a design in association with the housing developer.
In a post in Medium, blockchangers indicated its objective of finding ways to the use the distributed ledger technology (DLT). On its part, OBOS has opted to come forward to use for transaction process in the real estate segment thus leading to a prototype solution, which is ready for usage. This will help simplify the process of buying for purchasers, as well as, sellers. The net result is that a person could sell and buy properties within a few seconds rather than waiting for several weeks involving paperwork and financial risk.
The process is similar to registering a transaction made with Bitcoin and cryptocurrencies on blockchain. The Proof of Work and Proof of Stake will validate the transaction with the miners and register it on the public ledger of the blockchain.
The advantage of using the blockchain technology is that anyone using the solution could transfer rights of property to another owner and sign legal documents. Payment for the transaction could be taken through online mode. As the Norway DNB is joining, the transaction will be in the domestic currency only, i.e., Norwegian Krone. For its part, the property developer is talking to the Financial Supervisory Authority of Norway and Finanstilsynet.
Norway is one of the countries that is battling to regulate Bitcoin and cryptocurrencies on the financial space, and seems to be doing everything by the book.
Real Estate Agents
As a result of emerging technologies such as DLT, real estate agents role will also change. OBOS’ EVP of management consulting, Morten Aagenaes, believes that there will not be any doubt about the requirement of agents in selling or marketing the property. However, he thinks that their role will be different from the existing one.
A key factor of using the blockchain technology solution is that money saved from registration and settlement could be used for other purposes. The property developer is seeking sellers to test the prototype solution in practical terms. In any case, the development suggested that DLT could be useful beyond digital currencies.
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