Is Decentralised finance (DeFi) a good investment?
PropReturns Blog coverimage

Read it in 5 mins

Is Decentralised finance (DeFi) a good investment?

Last updated - Oct 10th, 2022

A major challenge in the Indian real estate market is the lack of transparency and a lack of trust between buyers and sellers. A property purchase also involves high transaction costs. A number of expenses are incurred, including commissions and fees paid to agents, lenders, brokers, and inspectors. The real estate industry has been revolutionized by several technological innovations since the outbreak of the pandemic.

By eliminating the hassles caused by intermediaries, Defi is disrupting the real estate market. Financial products are accessed through the blockchain technology of DeFi. A smart contract and security are two of their benefits. It offers transparency, thereby facilitating the growth of the industry and lowering its costs. DeFi positively impacts the real estate sector by providing the facility of smart contracts, which verify ownership, identity, and available funding.

Unlike regular offline contracts that need high fees and are complex in nature plus are time-consuming, smart contracts are pre-determined and assure a fair play system for all stakeholders. Secondly, DeFi maintains records, which is much needed as the historical centralized record keeper many times fails to keep track of records and as a result, the data gets misplaced or lost. This becomes a threat to the investors as these records are required to verify the property title, maintenance history, etc. Defi has prevented frauds and has secured the transactions of many investors and developers. This way, DeFi has optimized the real estate sector with the use of technology.

Read More

Related stories