What Blockchain has to Offer Proptech?

Blockchain has immense potential for proptech as it will impart transparency and open doors for the masses via tokenization. 

FREMONT, CA: Proptech is a sector with an unprecedented scope of disruptions and innovations. Blockchain has a reputation for fostering innovations. Thus, it’s not a surprise that blockchain is set to transform proptech in more than one way. Blockchain is the next wave in the proptech sector. Blockchain will eliminate the dependencies on intermediaries involved in the real assets. Further, blockchain will promote the idea of the tokenization of assets in real estate.

Anyone who wishes to own a property need not deal with a number of mediators who charge for the services. Thus, a potential customer is freed from having to invest an inflated amount that can been avoided with a way to buy the property directly, without the involvement of a third party.  Blockchain addresses the above issue. For instance, lawyers involved at the various stages of real estate transactions can be eliminated by the transparency and integrity of the blockchain. Further, it will mean lowered costs and faster transactions for the remaining stakeholders. Blockchain is also an efficient way to curb down risks such as fraud. The electronic recording system is highly transparent and removes the hassles of paperwork. Thus, the blockchain transaction not only lowers the risk of fraudulent activities but also lowers costs.

Another major disruption with the incorporation of blockchain in proptech will occur with tokenization. Tokenization in real estate is the process of digitizing assets into tokens, or digital representation. In simpler terms, tokenization involves splitting the value of a property into small pieces. Owners might sell the tokens if they want to liquidate some of their capital. On the other hand, anyone who doesn’t wish to buy the whole property can also have a share of the property. Tokenization can also be considered as a means to finance real estate. The process of creating tokens and digitization of the assets broadens the investor pool.  

Thus, there is a massive potential underlying blockchain incorporation in proptech. As the technology gains trust among the leaders and the investors, blockchain will steadily transform the proptech processes in the future. 

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