Blockchain is everywhere! Whether you want to buy your favourite dress online or want to book a hotel room, you’ll see blockchain in every domain, and the real estate industry is no exception!
A quick overview of blockchain
Think of blockchain as a distributed ledger of transactions. It supports the popular Bitcoin and many other cryptocurrencies. Anyone can be a part of the blockchain technology. Simply download it on your device and start using it. It utilises the power of distributed personal computers to validate and add real estate transactions with transparency.
Real estate companies are now fast paving their ways to utilise blockchain technology. Some popular blockchain-based real estate applications are Propy and Propify.
Blockchain has the following benefits for the real estate industry:
The blockchain tokens eliminate the need for title searches. You don’t need an intermediary to ensure the security of the title transfer. A blockchain-distributed database helps improve the authenticity of your real estate transactions. A homeowner could quickly and easily transfer title without requiring third-party verification. Blockchain technology disrupts property businesses by making the escrow firms out of date.
One of the biggest costs incurred in the real estate industry is an inappropriate level of transparency. So many middlemen like title, escrow, insurer and broker cause transaction friction. Blockchain technology enables quick and reliable transactions peer to peer. As mentioned above, there are no middlemen. Every piece of information is stored in a fully-transparent manner, which leads to transaction efficiency and trust.
Title records are the major decentralised and challenging aspect of the real estate sector. The title information usually remains stored offline at a local level. Blockchain technology provides a centralised database for title storage for the entire nation. This information can be accessed anytime instantly, allowing streamlined transfer of titles during a property sale.
Cost-effective and trusted
Blockchain reduces the requirement of involving title insurers. It adds efficiency and transparency across the real estate sector. So, if you are not being able to hire a real estate lawyer, it won’t cause any issue with the title and ownership of the property.
Avails good information publicly
Blockchain serves as a repository of information in the real estate industry. All the information that goes into this technology becomes extremely valuable and organisations get access to good information. It results in lower or almost no risks involved in real estate transactions for all parties involved.
Safe online data storage
Blockchain technology is much more than just cryptocurrencies. It can be used to store information about properties, title chain, deeds, etc on a decentralised storage. Blockchain technology is speculated to become an indispensable part of multiple listing services as well.
Blockchain technology enables people to share data and money securely. Information becomes more accessible, and there are no middlemen, which reduced the chances of theft and fraud. Overall, blockchain technology leads to a more secure, speedier, trusted real estate ecosystem.
For more useful insight and advice sign up to our newsletter below!