Blockchain has the ability to transform every aspect of the real estate industry. It is a disruptive innovation with the capability to turn around roles in this sector.
Fremont, CA: Blockchain has been a hot topic in the business world for over a decade now. It is undoubtedly paving way for a revolution in the field of finance and transactions. Facilitating open and distributed ledgers across a network of decentralized computers, blockchain can ensure secured transactions without the risk of alteration or destruction of records. This advantage has made businesses interested in this technology, especially when it comes to exploring its possibilities.
There are many industries that can gain great benefits from blockchain and real estate is one of them. Blockchain can simplify the complex transaction processes in real estate without compromising confidentiality and security. This industry is currently adopting blockchain-based techniques to reform its operations and processes. A smart contract is one of the modern ways of digitizing contract procedures using blockchain codes. These contracts are self-executing and the terms of the agreement (between the buyer and seller) are written and stored across a blockchain network. Similarly, the letters of intent, listing agreements, closing documents, and offer sheets can be digitized using blockchain. This method eradicates the need for intermediaries like bankers, lawyers, or realtors and also speeds up the process.
One of the divisions that have been transformed by blockchain is real estate investment. The related procedures have been time-consuming and require the involvement of multiple parties. Financial stability is also one of the major concerns. But, this technology enables tokenization of properties, which allows partial or fractional ownership of that particular asset. Tokenizing these resources promotes more liquidity and thereby making it easier to sell and buy shares faster and cheaper. This has resulted in drawing more investors and buyers investing.
Lastly, transparency has also become a key feature in property listing services ever since the adoption of blockchain. The decentralized system—where all the records and transaction information are stored—creates an accessible, uniform, and encrypted database. This eliminates biased investing, secure data storage, and transparent tracking of all methods and processes.
Needless to say, this technology is the future of secure transactions. The robust system of blockchain technology makes it impossible to change or hack into the system. Businesses will be able to perform accessible, transparent, and encrypted data transactions while reducing the need for audits, insurance, and paperwork, and the costs for intermediaries. In the future, more innovations can be expected in this technology, which will further increase the capability of this industry.