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How Blockchain Technology Affects the Real Estate Industry?

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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:

 

Fast transactions

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 Blockchain technology disrupts property businesses by making the escrow firms out of date.

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Transparency

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.

 

Final words

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.

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Topics: Insider, Property Advice, Property Management Advice

Rafael Niesten

Written by Rafael Niesten

In his early 20s, Perth local Rafael Niesten, won a scholarship to study in Canada, with that came the opportunity to volunteer at a local radio station. That spawned his entrepreneurial streak, returning to Perth in 2001 he set up community radio Groove FM. More by luck than design, they became successful, too successful as they took a significant chunk of the Perth Market. This sent up the red flag with his commercial competitors who saw to it that he came before the Australian Broadcasting Authority and on technicalities such as the number of volunteers he was forced to move on. He received the citizen of the year award for Western Australia (youth) and was a finalist in the Australian of the year awards (Youth). Falling on his sword he turned to running small and large scale events, all the while buying, renovating and selling properties. Buying and selling land and renovated houses provided a grounding in the property industry. He founded a cloud based medical grade voice recognition company, followed by co founding the first true cloud application for private practice in the health sector. He successfully exited these ventures at the end of 2016 and began building Bricks+Agent.