The blockchain technology in symbiosis with the European principle of cerubidine may be the next step in the evolution of housing construction in Russia. This writes Forbes.
According to British Bank HSBC, your own home own no more than 40% of the total population of the planet because of the banal lack of money.
“The price of real estate generally includes construction delay, includes the percentage of profit real estate development corporations, and credit obligations or other hidden costs of developers. Such costs are gradually moving to higher levels of the construction process, while not fully passed on to end customers,” Forbes notes.
While the construction market remains relatively conservative industry, and hardly innovates. In addition, rotating in a sphere of immense amounts attract fraud and 4.9% of fraud in global business occurs in construction.
As a way out of this situation, the publication offers a consider cloudbusting — the way of collective funding based on voluntary contributions. The scheme, reminiscent of the popular Soviet housing construction cooperatives, involves the active participation of customers in the earliest stages of acquisition of real estate chipped.
“Buyers pooled collective customers, define plot of land, say an architectural project and hire a construction contractor. They also Finance the construction and get. While the real estate increases in value in the course of its construction, and its cost does not include interest on loans to development corporations, since the construction is entirely financed from the collective pool,” explain the authors.
The main advantage of this scheme is the close integration with decentralized technologies. For example, the logic of construction financing may be prescribed in the smart contracts: after you complete a certain construction phase, the algorithm sends a signal to your Bank that automatically transfers from the escrow account the next tranche of funds to the contractor. This not only eliminates the unnecessary chain of intermediaries, but also eliminates the costs of various hidden costs.
In turn, to raise capital from the public market possible with the help of tokenization square meters and their subsequent placement among a pool of buyers.
“These security tokens would be the digital counterparts of housing certificates that allow the purchaser to obtain the square footage of the property. The register of owners of the token will be conducted in an open blockchain, Ethereum, and buyers will be able to control the market through a system of smart contracts,” Forbes says.
However, the publication continues, the transition of the Russian market of this system is unlikely to be rapid primarily due to the lack of legislative regulation of the DLT technology. However, tokenization technology square metres through the issuance of electronic certificates can be used as a sales tool for the real estate development companies.
We will remind, in December 2016 one of the largest banks in the Netherlands ABN Amro has started the project of tokenization real estate.
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