RxEAL is a platform for trustless and safe security deposit storage on the Ethereum blockchain. It provides decentralized dispute resolution with the main focus on real estate and automotive rental markets valued at hundreds of billions USD combined. RxEAL will also be available for other industries that demand trustless fund storage and fair dispute resolution.
RxEAL is a new blockchain solution for rental markets that provides a platform for safe security deposit storage. Using the opportunities offered by blockchain-based smart contract technology, RxEAL aims to reduce the high rate of disputes about security deposits that often arise at the end of a rental period. This is not a project that will disrupt rental markets, instead – RxEAL applies new technology to existing real world uses, adding value to service providers and their customers. Currently, the main focus of RxEAL is on real estate and automotive markets, but the solution can be applied to other rental business sectors as well.
A security deposit is a measure used to cover any losses suffered by the rental property. However, handing over the funds to the other party for storage is an issue of trust. The paying party cannot be certain that the deposit has been stored safely and that the other party will return the deposit. Furthermore, at the end of the agreement, it can take weeks for a lessee to receive their deposit back, and disputes may potentially end up having to be resolved in court, taking up even longer periods of time.
Currently, rental transactions require a high degree of trust – typically, the security deposit is stored by the landlord or car rental service, and the paying party has to trust that the deposit is stored securely and will be returned fairly. The owner, in turn, also has to trust that the lessee won’t violate the terms of the agreement.
Data shows that globally almost half of all security deposits are subject to disputes, because the involved parties disagree about how the security deposit should be handled at the end of the rental period. The majority of security deposit disputes are raised on the basis that funds have not been returned or the amount returned was lower than expected. With the currently available solutions, it can take weeks for a lessee to receive their deposit back, and solving these disputes in court is lengthy, complicated and costly for both sides.
The RxEAL solution employs blockchain-based smart contract technology, which eliminates the possibility of breaching the contract terms and thus solves the issue of trust. Security deposits no longer have to be handed over to an unknown lessor, because the funds are securely stored on the Ethereum blockchain. This solution provides equal control over the deposited funds – any changes or withdrawals from the deposit must be mutually approved.
Also, if a disagreement about the deposited funds does arise, on the RxEAL platform, blockchain technology is used to directly connect independent legal experts with parties involved in a rental agreement. This approach significantly reduces legal costs and time required to solve a dispute.
HOW DOES RXEAL WORK?
- On the RxEAL platform, users are able to generate smart contracts based on terms both parties have agreed on.
- The contract ensures that the deposit amount is stored securely on the Ethereum blockchain throughout the term of the agreement*. Any changes or withdrawals from the deposit must be approved by both parties.
- On completion of the rental period, the smart contract automatically initiates the payment of the security deposit back to the lessee after adjusting for any mutually approved damage repair charges.
- In the event of a dispute arising regarding the final split of the deposited funds, the platform will provide decentralized and independent arbitrage conducted by qualified members who earn RxEAL tokens (RXL) for resolving the dispute.
*RxEAL will provide the option to create smart contracts with values indicated in DAI (a cryptocurrency that is price stabilized against the value of the U.S. Dollar) for those users who will want to maintain the value of the deposit relative to fiat currency.
For more Information: https://rxeal.com/
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