A Blockchain Platform that is Accelerating the Sharing Economy and Disrupting the Real Estate Ecosystem
DISCLAIMER: This is a guest post by Atlant. The information provided in this post is the responsibility of the writer.
Real estate is one of the oldest markets in the world and it is bound to continue existing and growing as long as humankind needs shelter as a basic necessity of life. In other words, the real estate market is here to stay forever.
Though unchanged in its fundamental processes of temporary or permanent transfer of ownership from one party to another, the procedures of transaction and systems of owning landed properties have evolved in so many ways over time.
In the ancient times only community heads retained ownership of properties and allocated them to whoever they deemed necessary for different purposes. Long after that, individuals and groups started buying off these assets completely and acquired full ownership rights. Populations increased and the property market expanded as well until the more organized systems that we have in existence today.
Challenges in the current system
Despite the organisation of the existing markets, it is still confronted with a lot of challenges that make it difficult for individuals and groups to enjoy the full benefits that are resident within the real estate ecosystem.
The high cost of real estate which is as a result of several external charges and fees by third parties, and also due to the pseudo-monopoly that is existent within the market have locked out a lot of individuals from participating in the market. This is all about to change as ATLANT introduces a blockchain platform that will decentralize the market and totally overhaul the existing system. This innovation is designed to bring about a more transparent and secure market that will be open to all classes of investors.
A non-conventional system
Recently, complete ownership of large real estate properties is becoming unpopular. This is mainly because of the inherent liabilities involved in servicing these properties, especially when they are not in full functional use. With the emergence of the sharing economy, companies like Airbnb, Bookings and Expedia have created platforms that make it easy for individuals or organisations to rent spaces for use on a need and purpose basis. In order words, they have created systems that take renting away from the traditional annual lease or usual hotel booking services. Rather, house owners who may be out of town, or have extra unused spaces can put them up for short time renting and be located directly by those who need them.
This is a kind of service that has grown in popularity and is being patronized by users all over the world. However, this centralized system is prone to deficiencies in the area of high charges that result from fees paid to the platform providers like Airbnb, and also the issue of fake reviews. These are the problems, among several others that the ATLANT platform is out to solve by implementing the blockchain in real estate.
Blockchain for change
ATLANT is implementing the Blockchain in order to reshape the title insurance industry. By registering real estate on a distributed ledger, blockchain could streamline the manually intensive practice of examining public records when validating titles in real estate transactions. While blockchain technology is still in its infancy, and complete decentralized ledger of global property is not going to happen overnight, ATLANT plans to take a leading role in all facets of real estate globally to make this a reality, starting with disrupting the rental market and tokenizing large real estate assets for trading.
Having an asset registered on the decentralized ledger will enable a transparent procedure that will automatically eliminate fraudulent practices in the form of fake reviews and declarations. This will boost the confidence level in the market, making room for more reliable transactions. Tokenization of assets is a development that will create a very liquid market where anyone from anywhere in the work can participate effectively.
Most times, large real estate assets that are put up for sale in the market overstay due to the unavailability of capable buyers. Tokenizing these assets and having these tokens available in a decentralized exchange makes them very liquid and saleable in smaller fractions. It also gives lower level investors the opportunity to buy into properties that they judge to be viable but with no capacity to buy them as a whole.
A decentralized exchange
These transactions will be carried on the ATLANT transparent, secure and decentralized exchange using the Atlant (ATL) tokens. All Atlant (ATL) tokens are essentially membership certificates in the ATLANT Platform, which give numerous rights and privileges to their owners. These owners must comply with KYC/AML policies of ATLANT and proof of member activity confirmed by running an ATLANT node on the member’s computer.
This decentralized platform will also offer a transparent environment for Peer-to-Peer renting that will be more cost effective and void of manipulations in the form of fake reviews and forged rating.
Real estate is a gift of nature and an intrinsic aspect of human existence that should be managed in a manner that is fair to all. The existing systems have failed in offering a fair platform for market competition, therefore the majority of the world population are excluded from the property ownership circle. Services within the sector are also designed in a way that there is a clear demarcation between the rich and the poor.
ATLANT’s blockchain platform has the potential to help accelerate the adoption of the Sharing Economy which has already begun to unleash industry disruption by opening up significant amounts of previously untapped private capacity and tokenization of property may completely change real estate transactions and ownership transfer as we know them.