The emergence of Blockchain technology and soaring price of Bitcoin has made it important to understand the Cryptocurrency market in depth. The legend of IT figures and famously known as “Godfather of Antivirus Software” stated in his tweet “At the end of 2020 I predicted Bitcoin at $500,000. BTC has quickened in a speeder sense than any other model. I now anticipate Bitcoin at $1 million before the end of 2020.
Apart from his knowledge in IT sectors, the billionaire is actively involved in Blockchain industry. This industry is growing at a higher pace as it is said to be most accountable and trustworthy technology. The legend took a decision and indulged himself in a strategic partnership with i-house.com, a blockchain based real estate platform.
However, to get a better knowledge of this it is important to understand the background of i-house.com. With China’s growing economy from past year and accumulation of wealth by ordinary citizens, therefore their demands are increasing for more diversified assets. As a result, people are getting attracted to the global asset allocation and has moved from ultra-high community to individuals earning middle-income. The overseas real market is turning out to be one of the most important channels of global asset allocation. As per China outbound Investment Capital Watch Report 2016 by DTZ/Cushman & Wakefield, China’s overseas commercial real estate investment in 2016 totalled $ 38.3 billion, an increase of 49% over 2015. But due to various factors, the figure got declined in 2017, to be cautious investors adopted a wait and see attitude under restrictive policies.
As compared to other overseas investment approaches it came out that risk is relatively low and no professionals are needed for investors. However, overseas real estate investment has its own limitations. As the price of real estate is relatively high while the risk still continues to hit the market in the areas of exchange rates, interest rates and legal matters. Asymmetric information, transaction and less of credibility are counted as pitfalls.
Moreover, overseas developers face their fair share challenges. It often gets difficult to capture finance as ROI process is complex and involves too many departments with not proper rules and regulations. The question that arises that how this could be solved? Might be the right answer to it is Blockchain.
Why are investors relying on Blockchain technology? Because of its credibility, the traceability, immutability and transparency make it distinct and prime for real estate applications. Many countries like Georgia, Sweden, Ukraine, Brazil, Russia, India are trying to adopt blockchain by checking it through relevant tests. Under this technology, some are working hard to test the technology for registration in land and property. The Forbes Real Estate Council recently share their view on how blockchain could promote the development of the real estate market that is by speeding up the transaction process; increasing transparency; securing online data storage; be cost-effective while trusted and make good information available openly.
In short smart contracts make it sure that all the steps are taken before the funds are transferred or reimbursed to banks and transfer of ownership is completed. As blockchain is a distributed mean, it makes possible for every party to not only rely on the single source of information but also helps in building trust, reduce cost and accelerate the transaction.
Specifically, i-house shared how they going to work with the blockchain technology, they are basically going to achieve this by their IHT technology, developed by Ethereum blockchain technology. They are going to work on the mechanism of blockchain which will provide total transparency which will help users to invest in smaller amount but will still have a huge benefit. It works with licensed financial institutions to ensure compliance with laws.
It’s a hope that i-house.com which has welcomed McAfee as a strategic partner will be successful in introducing blockchain technology to the global estate market, thus bringing out the improvements.
In this globally driven society, it is important to understand the industry behind i-house.com in a broader sense. China’s economy is growing rapidly and accumulation of wealth by an ordinary citizen is very high, therefore, as a result, the concept of global asset allocation has attracted a lot of people. The overseas real estate market has evolved to become one of the most important channels of global assets allocation. According to the 2016 China Outbound Investment Capital Watch Report by DTZ/Cushman & Wakefield, China’s overseas commercial real estate investment in 2016 totaled $ 38.3 billion, an increase of 49% over 2015. Though it actually declined in 2017 due to a slew of factors Furthermore, overseas residential investments are also subject to possible policy restrictions for individual investors. For example, property investment hotspots in Canada and New Zealand either have or are planning to ban property purchases by non-permanent resident aliens.
Similarly, many problems are being faced by overseas developers. It gets difficult to acquire financing for real estate development while the ROI cycle is very tedious and a long process involving too many departments’ ill-defined responsibilities and functions. What could actually solve all those problems? Blockchain might be a correct answer for it.
Because of the traceability, immutability, and transparency of Blockchain makes it a hero of the real estate applications. Many countries are trying their hands in Blockchain technology for registration of property and land. It would help in providing reliable and inexpensive registration of the land. It is being seen that in future Blockchain will play a major role in real estate as it would help making complex process seems to be easy and also will help in building the trust.
With the introduction of Blockchain technology, there will also be a boom in a global economy. However, the i-house.com project, which has attracted the attention of McAfee, is expected to break the status quo.
The i-house project team is working hard to link the blockchain mechanism with the real estate, real estate developers and financial institutions converting them to “digital credit society”. All real estate owners and investors will be able to benefit from the real estate blockchain mechanism.
How will it work?
It will achieve its goal through IHT technology developed on the basis Ethereum blockchain technology. It utilizes blockchain’s intrinsic advantages such as distrust mechanism, anti-tamper, information transparency, co-supervision and traceability to split high-value real estate into smaller shares through the IHT smart contract technology to be allocated to financial institutions. As a result, users are provided with the opportunity to invest in smaller amounts and still benefit from real estate investments, and the security and low risk of investment are guaranteed. It works with licensed financial institutions to completely work under the rules and regulations. According to the team, the commercial growth has marked a great response towards . By 2020, more than $ 50 billion worth of assets will be blockchain and available for sale. The question still remains in our mind whether which welcomed McAfee as a strategic partner can truly introduce blockchain technology to the global real estate market.