Bank Of China To Use A New Blockchain Platform For Home Buyers

• Toshendra Kumar Sharma
• March 23, 2019

Blockchain has affected many industries. Some companies have been investing a huge chunk of their budget on implementing and integrating Blockchain technology. Many startups and big names have invested in this technology with an objective to create more efficient business operations. China is one such name that has carved a niche for itself when it comes to Blockchain application. The country has been actively promoting the use of this technology. The country has already implemented Blockchain in its legal framework, and now it is also showcased its inclination to use Blockchain for home buyers.

 

The Buzz Around Blockchain

 

The Blockchain is a distributed ledger technology which allows the exchange of information or data without third-party interference. Time-stamping of data allows chronological storage of data thus ensuring easy traceability. In addition to this, Blockchain also allows the data to be immutable, which means it resists hacking and data tampering. All these factors make Blockchain the inevitable technology of the future.

 

Summary Of The key Features Of Blockchain:

• Decentralization
• Immutability
• Data Security
• Traceability

 

In addition to these features, Smart Contract is something which most of the companies, especially the real estate sector is eyeing. These pre-programmed contracts are automated; they are executed when the parameters of the contract are met. This can help replace the manual contracts signed between two parties during the sale and purchase of the property. Well, smart contracts have many other applications. But, here we will be unfolding the implementation of Blockchain in real estate in China.

China Has Announced Using Blockchain Technology For Home Buyers:

 

We all know that Blockchain technology is molding the industry like never before. It has dramatically influenced the global economy. The real estate market is no different. We know that Blockchain can provide a ledger where tracking of information and history is simplified; the same can be useful for real estate as well. With the help of this feature of Blockchain technology, it is easy to track the ownership of the property, title clearance and other details pertaining to a property can be easily uncovered using Blockchain technology. China is also making use of these features and has proposed a platform for home buyers. This platform is developed jointly by the Hong Kong Applied Science and Technology Research Institute (ASTRI) and the New World Development, a building construction company.

 

In fact, the Bank of China has become the first financial organization to use Blockchain technology. With the help of this platform, the company aims at improving the process of property acquisition. With the help of this platform, one can easily replace the paperwork with digital processes.

With the help of this platform, the process of the mortgage application and signing of sale purchase agreement will take place at a faster pace, thus saving a lot of time and money.

 

What benefits will this platform bring?

Well, integrating Blockchain technology with business operations has a great impact on the efficiency of the system. Additionally, it also helps in saving the cost. Here is a quick view of the advantages of implementing a Blockchain platform:

• It will fasten the process of sale and purchase

 

• Data security since everything is digitized, all the information is stored in the ledger leaving no scope for data alteration and modification.

 

• Integrating this technology into the Bank’s internal process will help in reducing the operating cost by 15- 60%. This will save the time and money of both, the seller and the buyer.

 

• Enhanced efficacy and flexibility in the process of property buying.

 

 

Other moves

This is not the first time China has come up with Blockchain implementation, earlier in 2018, the Bank of China collaborated with China UnionPay or CUP which is a financial services corporation to explore Blockchain’s application in the payment system.

 

China has already announced Blockchain implementation in the legal framework. It is also promoting the startups who are working towards integrating Blockchain technology in various business operations. With all these moves China is creating a strong impact in the world of Blockchain. In fact, it would not be wrong to claim that China is one of the major contributor and aggressive promoter of Blockchain technology and is working aggressively to integrate this technology across various Sector.

 

Concluding Thoughts

With the recent development of Blockchain technology in different business spheres, we can say that Blockchain is a promising technology of the future. It aims to create an ecosystem of growth where companies can work efficiently without investing too much time and money. However, this is still a nascent technology that would need certain intervention and improvement to proper in the future.