Land and buildings is a lucrative business in most parts of the world, and now in this digital era, different players in this sector are trying everything possible to make it more beautiful and profitable by using innovative technologies including blockchain and cryptocurrency.
Now, two major firms have created a blockchain and distributed ledger technology (DLT)-based solution to tackle the issue of the numerous vacant homes in the Japanese countryside.
LIFULL Social Funding Co., Ltd., which provides housing and related services, and Securitize, a digital securities platform provider, carried out a demonstration experiment of a immovables security token issuance scheme for investment in utilization and others. This experiment verified the automatic execution of operations and the guarantee of transparency in landed property phantoms by applying blockchain technology, with the aim of building a foundation for promoting regional revitalization-type real estate crowd hunting of unoccupied houses.
The extent of the validation tests includes verification of the degree of operational cost reduction through automatic run of distribution, premium, and vindication of security coins using smart contracts, and verification of fund transparency using public chains. In the smart contract execution process, security coins are distributed to investors using the payment info got from the bank API of GMO Aozora Net Bank, Ltd. as a trigger.
Japan is not the only nation exploring the potential of distributed ledger technology for the landed property sector, other major countries and companies are also applying blockchain tools in different ways.
For instance, coinidol.com, a world blockchain news outlet, reported in July 2019 that Liechtenstein Financial Market Authority approved a newfangled tokenized landholdings investment product, a thing that was happening for the first time in the history of Europe. Other countries using blockchain in this industry include Italy, United States, etc.
As we talk now, DLT-based real estate is actually gaining momentum as a means of interaction between purchasers, sellers and venture capitalists as well as learning about properties. There are several companies from different parts of the globe that are using the progressively popular groundbreaking technology to uplift businesses. Some of those firms include: Propertyclub, Realblocks, Smartrealty, The Crypto Realty Group, all from the US, Monaco Estates, and many others.