Blockchain Speeds Up Intelligent Process of Realty Management
“Living” has always been a big thing in life.
Regardless of renting a house or buying a house, “house searching” almost becomes the common difficulties that people in all ages face nowadays, for example the youngsters want to stay near to the company, new parents want good package, the elders want good environment……price, location, package and so on, every keyword related to “living” within the selection is hard to choose.
While regarding “living” issue, there is another part that easily being neglected but very important, which is realty.
If we call the construction, landscaping and location of a residential area as the hardware, then realty management is the software of residential area. It’s true that hardware is important, but if there is no good software which can match with it, no matter how good the hardware is, it also cannot show its performance. In daily life, realty department is responsible in the management of security, fire protection, landscaping, maintenance, renovation and so on in residential area, and every part of it is related to either high or low of actual living experience.
Image source: network
However, relationship between realty and owner is normally unsatisfactory. Recently, number of dispute cases regarding realty service agreement has shown high rates in nationwide. According to data disclosed by China Judgments Online and ALPHA database, total of 599458 dispute cases which involved realty service agreement across the country had occurred in year 2021, whereas in year 2021, number of dispute cases involving realty service agreement also reached 129306 in merely first half of the year.
In all realty dispute cases, contradiction between owner and realty normally includes several categories, such as owner stating that realty management service is not good enough, hard to make realty management fee payment, income distribution of public space and etc. Furthermore, in traditional realty management model, owner is in charge of making payment, whereas realty is buckling down to his or her work, thus notice becomes the “messenger” of realty if something happens. Hence, both parties have lesser chances to carry out direct, effective communication and understand about each other. Once misunderstanding occurs, way of handling the case to court for judgment becomes a norm.
Image source: network
Nevertheless, contradiction between owner and realty truly cannot be mediated? The answer is definitely false. The effective methods of resolving existed contradictions fundamentally are to facilitate digitalization process of realty management and transform traditional realty to “intelligent public realty”, so that owner can participate in realty management of residential area comprehensively via making payment, participating in specific works and so on. Owner can truly become the host of realty management and form a structure whereby owner and realty shall bear the risk and income together.
#01 What are The Dilemmas of Realty Management?
Despite being the person who receives realty services, owner frequently appears at the court as defendant, and reasons of being accused are mostly refusal to pay for realty service fee, while behind the “refusal to pay” behaviour is mainly dissatisfaction and accusation of owner towards realty services. We can get a peek about the reasons of causing realty management dilemma based on several aspects in below:
01 Lower Transparency of Realty During Management Process
Part of the reason why the owner is unsatisfied about realty is because of not understanding about realty management. Some owners think that they shall enjoy comprehensive services of realty enterprise after paying the realty management fee, thus when they have too high expectations about the management services which are excluded from the realty management appointment contract, they will naturally feel unsatisfied about realty management once these service requirements are not being fulfilled. On the other hand, management and service range which realty holds responsible for have clearly stipulated in realty management appointment contract, hence owner’s misunderstanding has certain relation with insufficient publicity of terms written in the contract that must be known by the owner.
Moreover, disputes triggered between owner and realty due to information transparency can also be shown on the realty payment account. Realty enterprise shall announce the payment position of realty regularly, but there are certain difficulties existing if completely open and transparent is required to achieve. At the same time, after owner pays the realty fee, he or she is hard to know where the fee will be used, and when there is no other way to carry out effective monitoring on capital flow, it will break the trust relationship between owner and realty. In addition, as the owner no longer cooperates with them, this makes realty enterprise harder to progress its work.
02 Residents Have Lower Participation in Making Decision about Public Affairs in Residential Area
Although realty management is normally led by realty enterprise, residents living in the residential area should be playing more important roles in residential area governance. This is because they have more realistic experiences and are more aware of the strong points and shortcomings of realty management, and also having more rights to speak about how to maintain and govern their residential area.
However, in actual realty management, the role of owner is frequently weakened and neglected due to various reasons. For example, difficulty in gathering all owners to organize a meeting for voting because of various natural or human factors which causes difficulty in establishing reliable owner’s committee or making important decisions related to all owners. Besides, realty management company is hard to be monitored without owner’s committee, thus real requirement of the owner cannot be responded accurately.
03 Lack of Highly Reliable Operational Management Method
As information technology continues to develop, digitalization has become the transformation orientation of various industries, and meanwhile realty management is also discovering the route to digitalization. Under the operational model of “digital public realty”, participation channel of owner in realty management highly relies on informatization and networking system, but traditional and centralized informatization and networking management system have the risk of data being tampered and damaged by system administrator or cyber-attacker. Once these risks become reality, trust and operational basis of “digital public realty” operational model will no longer exist.
04 Lack of Highly Reliable Income Distribution Approach
Currently, realty management model of our country is mainly divided into complete rationing system and compensation system. Complete rationing system means all realty fees will belong to realty service enterprise, and realty service enterprise only needs to promise the owner by providing certain services, while public income of residential area including advertisement fee and car parking fee will all be owned together by the owner. On the other hand, for compensation system, realty management service enterprise obtains 15% of realty management fee, as for the rest of the fund, owner and realty management service enterprise will decide together on how to use it. However, many owners do not know about the income, not to mention about how to manage and utilize it effectively.
#02 VoneDAO Autonomous Organizational Platform Facilitates Intelligent Route of Realty Management
As a type of underlying layer IT technology, blockchain utilizes trust of integration algorithm and technology to establish mechanism and transform traditional information verification method that relies on centralized node. Based on this characteristic, people can build asset transaction and value transmission network among multiple participants without the assistance of agent, while reducing trust establishment cost, facilitating maintenance and fulfilment of contractual relationship and regulations via constructing and executing smart contract.
VoneDAO autonomous organizational platform researched and developed by Vonechain Technology, the innovator of blockchain sector can achieve effective collaboration in organization with low cost, speed up intelligent process of realty management sector, help in forming high quality and high level of collaboration model between realty management service enterprise and owner and establish harmonious community service ecology.
VoneDAO's platform advantage
01 Transparent and Tamper-Proof Information Reshape “Owner-Realty” Trust Mechanism
Tamper-proof is the main characteristic of blockchain, because data will be stored eternally once added to blockchain, hence data modification on single node does not affect other nodes in blockchain. Tamper-proof characteristic applied on realty management can solve trust issue between realty management enterprise and owner with public better.
Realty service enterprise can issue all information such as realty service processes, realty management staffs, devices, materials, etc. on chain and achieve full record and traceability about all daily services and management work so that owner can have thorough understanding about realty management condition and service level via data. Moreover, blockchain also breaks trust barrier between realty management industry and society with owner so that owner is able to assign realty management enterprise in handling various basic service requirements with full trust.
02 Decentralization Promotes Effective Collaboration and Releases Vitality of Owner’s Committee
VoneDAO autonomous organizational platform provides fair, reliable and decentralized organizational platform for users based on blockchain technology. Blockchain no longer possesses mandatory centralized control function, instead rights and liabilities in every node are the same. If realty management is applied under this model, realty management service enterprise and owner can enjoy more equal rights, manage the residential area together and participate in public affairs governance of residential area in order to construct active community management ecology.
Decentralized characteristic not only encourages owner to participate in public affairs of residential area, but also provides mindset for realty management industrial transformation. Apart from services like security, cleaning, infrastructure device, green maintenance and so on, traditional realty service enterprise can also cooperate with professional service agencies of various industries such as housekeeping agency, education, repairing, elderly care, F&B retail, culture and recreation, etc. to achieve cross-border operation and further develop community services. Blockchain’s decentralized characteristic allows professional agencies from different industries to enter community service ecosphere in equal status, where every agency performs own duty, acts its own way, shows mutual interaction, obtains own profit, provides comprehensive services together for the public and fulfils various requirements from owners.
03 Encryption Mechanism Ensures Terminal Safety
Blockchain’s encryption mechanism ensures terminal safety, which means every terminal device will possess own public and private key. Blockchain system maintains terminal identity list via smart contract and reviews whether the device has right to access node and upload data so that malicious terminal access and data contamination can be prevented and security of smart realty system construction can be improved. VoneDAO autonomous organizational platform uses VoneBaaS, product of blockchain underlying layer platform BaaS which self-researched and developed by Vonechain Technology to apply multi-level of encryption mechanism and fulfil commercial cipher standard of national cryptography in full process in order to respond easily to security issues of smart realty system.
04 Smart Contract Accelerates Positive Ecological Construction of Realty Management
Smart contract is a type of special agreement that can only be achieved through blockchain, it includes all information related to transaction and executes automatically after fixed requirements are fulfilled. Smart contract procedure not only is an automatically executed computer program, but also serves as a system participant itself, because it can response to messages received, accept and store value, while also can send information and export value to outside. Via token and smart contract technology based on blockchain platform, realty service enterprise ensures payment and owner who involves in realty management affairs can obtain income and remuneration deserved in time and reliably, encourages owner to pay realty management fee and participate in realty management affairs actively in order to form positive feedback loop that shows active involvement and benefit acquisition.
#03 Conclusion
Followed by development of information technology and community service industry, China realty management industry is undergoing rapid reformation. Not only head structure of industry is continuously changing, boundary of enterprise’s business is also continuously being refreshed. As the representative of cutting-edge technology, blockchain is providing new direction for realty management industrial reformation.
Being the unified solution provider of blockchain technology, Vonechain Technology will become a sincere partner during the exploration of intelligent realty management industry, assist enterprise and residential area by utilizing VoneDAO autonomous organizational platform to establish benefit sharing, comprehensive service, safe and reliable digital realty management solutions co-governed by resident and enterprise, while helping to achieve free, equal and open realty management ecology.