What is Smart Contract Development?
Smart contract development is a process of self-executing contracts with the terms of the agreement between the buyer and the seller. The protocols of the deals are present in an electronic format that fulfils essential contract terms and transfers information automatically. The process operates in a decentralised environment without human intervention.
Smart contracts remove the gap between the physical world and the digital world. So, if the terms and conditions are not fulfilled, smart contracts developers can design the system not to perform other operations until the contract is fulfilled. Thus, such actions can influence the physical world.
Why Real Estate Industry Needs Smart Contracts?
Blockchain technology is slowly taking over the traditional industries. The rise of cryptocurrency has introduced a new way for businesses to conduct their financial transactions. Thus, it simplifies the most basic day-to-day activity. Blockchain smart contract developers’ innovative concept of all under one roof is reaching masses and transforming every area of life including the real estate industry.
Lack of transparency and data redundancy in rental agreement are the two major pain points of the real estate industry. Disagreements occur in real estate office because of an informal oral agreement that is not mentioned in the contract. So, if their wallet is in smart contract tied to the deal, then the solution is fixed and immutable, and trust is automated.
How Introducing Smart Contract Benefits Real Estate Industry?
The advantages of using blockchain technology and smart contracts in the real estate industry are as follows:
The smart contract development company ensures that the deal is always observed as per its terms and conditions. This protocol allows different entities to work together without trusting each other. Separate entities can work together without any previous business relationship. Thus, smart contracts reduce risk aversion through a trustless environment.
Different transactions related to various parties such as tenants, landlords, and financial management services are part of the same database. The real estate company faces the issue of separating the number of invoices. Smart contracts and blockchain technology separate transactions between the parties that improve the efficiency of the invoice process.
In the real estate ecosystem, multiple parties such as tenants, financial management operators, and landlords involve the management of real estate properties. They have access to modify a variety of information in the smart contract. This eliminates modification between two parties as all changes are amended in the smart contract.
Trusted intermediaries like brokers and notary are not required as the transaction can be automatically validated and independently verified. Also, the time-consuming process of confirming and approving the rental agreement is cut down into two simple steps. The bank and real-estate fees are avoided because of the two-party system.
Hence, the smart contract development in the real estate industry will change the traditional process of dealing with contracts. CodeZeros is a blockchain consultancy that can help you build your version of the smart contract. You can hire smart contract developers that match your job requirement and effortlessly transit to the digital contract mode.