How can blockchain be applied to real estate in Nigeria?
The cheapest houses in Lagos cost around 8 million Naira, which is out of budget for most people. With blockchain technology, a hypothetical situation can be created where the owner of such a building tokenizes it then, it is listed on an exchange. Eight people can get 1 million naira worth of these tokens each to jointly own the house. These eight will automatically enter a multi-signature contract (multiple signatures from the eight owners are needed before any transaction concerning the house can be executed). This smart contract is self-executing and enforceable, thereby creating trust and honesty among them as whatever decision is taken with respect to the house has to be agreed upon by a majority of the owners.
The scenario above will greatly reduce the barrier to entry as fractional ownership of houses is made possible, while also boosting liquidity as a seller just needs to go to an exchange(which is open to both local and foreign investors) to liquidate the tokens. This also allows for greater portfolio diversification and risk reduction. Instead of locking up all your money in one single property, you can use the same amount of cash to buy fractions in multiple properties.
Also, this hypothetical blockchain platform is already assuming functions such as purchase, sale, financing, leasing, and legal documentation (using smart contracts) that were traditionally handled by third parties such as brokers, agents, lawyers, and banks. Cutting out these third parties will result in buyers and sellers getting more out of their money as they save on commissions and fees charged by them. This also makes the process much quicker as the back-and-forth between these middlemen gets cut.