Blockchain in real estate makes way for transparency in transactions and provides an open and shared database to all the involved parties.
FERMONT, CA: The blockchain technology is at the helm of the real estate revolution. The process of buying property has been experiencing a significant transformation because insurance and transfer of ownership, etc. are all moving towards blockchain solutions. Traditional property markets had multiple redundant players, including agents, brokers, attorneys, mortgage lenders, title companies, and many more, creating a web of time-consuming and expensive procedures. There are many other limitations, such as errors in land registry documents, inefficient systems of tracking within the sales process, lack of transparency, and excessive fees that can hamper the growth of the real estate business.
The blockchain works by encrypting records by digital ledger where information is stored across the whole network. It is possible to view and store data in a blockchain simultaneously, enabling the real estate sector to streamline its business processes. It is not possible to interfere with information in a blockchain network as data stored in the digital ledger is immutable. Blockchain solution provides smart contracts, which require all the involved parties to comply with the regulations. By taking care of the legal discourse, smart contracts will make the system transparent. This will simplify the procedures for both home buyers and developers significantly.
Many nations have started implementing blockchain for land registrations. The main reason behind this implementation is to provide property transactions with trust, transparency, and speed. The blockchain solutions also provide the market with an enhanced system with much-needed liquidity. Fractionalization is a new approach that allows an individual to own units or tokens. Fractionalization, with blockchain, can increase liquidity further. This can also have a major impact on the market as fractionalization incentivizes people to open up to the real estate market who would otherwise not be able to invest in the real estate market.
In addition to improving traditional processes in the real estate sector, blockchain can help change the attitude towards real estate with greater transparency and efficiency.