Source: Medium.com

How Blockchain Technology Could Revolutionise the Real Estate Industry

When it first started out way back in 2009, only a handful of people believed in Bitcoin and its importance. Now fast forward 10 years, Bitcoin is one of the most valuable commodities that is available on the stock market. There are several investors who invested in Bitcoin in its early stages and are now benefiting vastly from its growth.

Their success has inspired countless investors to invest in Bitcoin and if you want to be a part of one of these investors, you can visit this site to do so. Bitcoin also introduced a new form of virtual currency technology along with it which is called blockchain technology. While it may sound like the technology is only useful for accessing and using Bitcoin, it has had various benefits and influence in other real-life industry sectors.

One such sector is the real estate industry where blockchain technology if utilized properly, can entirely revolutionize the way the industry works. There are several ways where blockchain technology has already started influencing how the real estate industry works. However, many crypto investors and even normal investors, who wish to broaden their portfolio by investing in the real estate market are still unaware about these aspects.

That’s why in this article we will talk about exactly how blockchain technology has the potential to revolutionise the real estate industry in a number of ways.

Source: storeys.com

Introducing blockchain-based smart contracts

Smart contracts are the newest addition to the business world which ensure a virtual copy of all your physical contracts into a self-securing digital form on the blockchain network. These smart contracts can be accessed by both the buyer and seller after the terms of the agreement are met to the satisfaction of both parties.

The greatest thing about these smart contracts is that they are much easier to handle and access than physical contracts. They eliminate all the hassle that comes with signing physical contracts and makes the process of purchasing real estate extremely simple. Since these contracts are maintained on the blockchain network itself, they can be easily revoked and tracked anytime.

This gives these contracts much better security and legitimacy that matches, if not surpasses, the security offered by paper contracts.

Making investments in real estate accessible to everyone

When you think about real estate investments, the only investors that come to mind are extremely wealthy people who can afford the capital to buy entire properties and lands. Before the blockchain network came along, investing in real estate was not an option for average investors.

However, with the inclusion of the blockchain network in the process, investing in real estate has become much easier than before. Blockchain technology tokenizes real estate into tangible parts that can be bought separately. This allows even average investors to invest in the real estate market thus not only providing immense benefits to the estate holder but also to the investor who can broaden his portfolio.

This tokenization and decentralization has only been possible with the help of blockchain technology which has also eliminated the need for involving multiple parties for the transaction.

Source: ibm.com

Developing property listing services and platforms that are secure

The biggest threat to the real estate market right now is the lack of security that is prevalent everywhere. All the information about an estate or land is written in pen and paper form. Unfortunately, this information can be easily tampered and forged by fraudulent third party parties.

A simple way to resolve this would be to use blockchain technology for selling real estate. Selling a property on blockchain technology ensures that an estate is being sold off on a platform which is secure from all tampering and forgeries. What’s better is that these blockchain platforms are accessible to everyone on the planet which means investors don’t need to have special contacts to get deals on their favorite real estate property.

Eliminating all intermediaries that come between real estate transactions

If you want to own any form of property on the real estate market in today’s date, it indirectly means that you will need to stay in touch and deal with a lot of middlemen or intermediaries before you make the actual investment. The problem is, involving intermediaries increases the length of the process considerably.

A process as simple as purchasing a property that shouldn’t take more than a few days, ends up taking a few months to complete when there are a lot of extensive procedures involved. What’s more is that these intermediaries also charge you hefty rates for their services which can be as large as 2-5% of the amount of the estate you are purchasing.

This ends up making deals extremely unfavourable for investors and deters them away from the real estate market. However, with blockchain technology in the picture, investors can invest in real estate directly without ever contacting any intermediaries to file through the process. Since the contract is digitally updated by itself as each procedure is completed, investors can be assured a minimal amount of excess rate if they invest in blockchain technology.

Source: primafelicitas.com

Reduced amount of capital and investment to invest in the real estate industry

It is now possible to co-own an entire property with other individuals with the help of tokens. These tokens can be as big and as small as per the demand of the investors buying them and allow them to buy small amounts of these tokens so that they, too, can own property by themselves.

This wasn’t possible before where real estate could only be owned by a single individual or an organization. With the introduction to blockchain technology in the real estate market, it is now possible to divide the estate into small tokens and sell these tokens to any finite number of investors who want to own them.

For investors specifically, this is an excellent way of having some capital in a no-risk investment that is only bound to give them an increased amount of value in the future.

Conclusion

There are several ways blockchain technology can help revolutionize the real estate industry. We hope this article was insightful for you regarding this and if it was, please consider following our website for regular updates as it will help us out immensely.

About Margharita Evanom