Before the onset of the technical characteristics in the domain of real estate, the process involved in the transactions was entirely manual. The procedure used to be time-consuming and labor-intensive. The evolution of digital space has brought a revolution in every conceivable way of life including real estate. This has made the investment options smooth, swift, and cost-effective.
In one of the researches published on Gartner, it is said that the companies spend 3 percent of their revenues on paper printing and paper-related works. These things make the process of traditional contracts devour more money, labor, and time. Individuals all over the globe have been moving towards a more effective and simplified option which is smart contracts.
Applications of Smart Contracts
Smart contracts, first proposed in the 1990s, became a reality in 2015 and are the outcome of the evolution of blockchain technology. It has turned out to be one of the key whirl creators in the market. They eliminate the need for intermediaries required in traditional contracts, along with other compelling characteristics.
Smart contracts are digital agreements directly written into code and are self-executing contracts. These contracts are processed over blockchain technology and aim to automate transactions and executions without relying upon intermediaries. These are blockchain-based platforms that are not limited to any designated function but have distinct applications in the field of financial transactions, voting systems, and decentralized applications (DApps).
Real Estate Transactions and Their Functions
Real estate transaction is a term used to describe the buying, selling, or trading of any property. It is not limited to physical trading and leasing but has reached the digital paradigm. Many burgeoning mobile applications and other digital trading platforms are incorporating and encouraging people to create wealth regardless of them being not from the trading background.
The digital space has introduced real estate transactions with a wider range of audiences and turned the process convenient and cost-saving. Further, the merger of the digital interface with real estate has reduced environmental degradation by curtailing the use of paper and other resources and thus aligning with the goal of sustainable development.
Smart Contracts and Real Estate Transactions
Real estate transactions while subsuming with smart contracts and blockchain technology have been undergoing a transformative journey. This amalgamation has increased the efficiency, immutability, and transparency of all the stakeholders. The digitalized version of real estate transactions has offered various advantages and hence, compelling the investors and traders to come to the forefront of numerous opportunities.
The rise in online investment platforms has increased the inclusivity of investors and traders worldwide and is revolutionizing digital real estate and related industries. Further, smart contracts have been introduced to the various industries with their decentralized agreements for real estate tokenization platforms. They have changed the interface of real-estate transactions by automating and streamlining the exchange process and providing transparent, secure, efficient, and tamper-proof transactions.
Alongside, they reduce the risk of fraud or manipulation and diminish the dependency on intermediaries. Also, smart contracts provide a unique gateway of ownership, termed fractional ownership. This serves all the sections of investors including the individual investors to invest and gain ownership rights. This adds a layer of inclusivity in the financial sectors and democratizes the entire process.
Smart contracts enabled by blockchain technology accredit the real estate Tokenization process accessible on the global stage. It further provides grounds for the investors free from any geographical barriers and enables their interactions with international investors and traders. It aims to aid seamless cross-border transactions and bridge the gap amongst people from various regions across the planet. Moreover, it has been designed to strictly adhere to regulatory compliance.
Kalp is a pioneering digital public infrastructure, powered by a regulated permissioned decentralized coalition DLT (Distributed Ledger Technology) that enables the SMART Exchange platform. This platform uses tokenization to allow investment in real-world assets in a secure, innovative, and user-friendly way. By making investing in real-world assets more accessible, SMART Exchange aims to support specialized businesses. With its structured approach, stringent security, and commitment to compliance, the platform offers an appealing possibility for diversified and efficient investing. Its regulation, security measures, and focus on usability and compliance make it stand out as an accessible way to add real assets to an investment portfolio.
Conclusion
Traditional real estate transactions were involved in a cumbersome process involving humongous paperwork and used to be a labor-intensive process. The digitalization of real-estate transactions has groomed copious opportunities, including engagements of traders from various segments. Further, the transfusion of real estate transactions with blockchain technology and smart contracts has evolved the field for individual investors and small-scale traders to grow. Smart contracts have been one of the most noteworthy features that evolved over blockchain technology. It has made the real estate investment process efficient, transparent, and secure. Additionally, it has eased fractional ownership by making the ecosystem transparent and respecting the opinions of all the stakeholders. SMART Exchange lines up with the same vision to empower the investors with fractional ownership of RWA (Real World Assets) securely and transparently. It provides an empodium where the tokenized real estate assets can be traded while democratizing the market with inclusivity.
For more information and queries, please visit SMART, a user-friendly platform for investors with fractional ownership and diversified investment opportunities.
