Blockchain has been heralded as a technology that will revolutionize the world. It’s certainly true that there are many applications for blockchain and real estate – but how exactly?
Given blockchain’s disruption of financial services and subsequent widespread application across industries, it’s hard to find a segment that has not been influenced by the technology.
Real estate is a notoriously inefficient market. From buying and selling homes to managing rental properties and collecting rent, real estate involves a lot of paperwork and manual work. Blockchain can help streamline this process and improve transparency in an industry that often lacks it.
How Blockchain Is Transforming Real Estate
The real estate market is one of the largest industries in the world and has been plagued by issues like fraud, lack of transparency and high transaction costs.
Blockchain technology addresses a lot of the pain points in real estate transactions such as tedious paperwork, complex legal procedures, long turnaround time and costly middlemen services.
This is because a decentralized, immutable ledger provides a single source of truth for ownership records, without the involvement of third parties.
Blockchain applications have been developed to address many issues faced by real estate industry today including:
Property Rights Registry — A blockchain-based registry allows anyone to verify property ownership records easily through an online portal.
It also reduces legal disputes over ownership by providing a single source of truth for all stakeholders involved in transactions such as sellers, buyers and lenders.
Mortgage Lending — Blockchain can be used to store information about a borrower’s credit history on the public ledger so that all financial institutions involved in lending can easily access all information.
Real estate is a complex sector with many moving parts. While it may seem like a straightforward process, there are many moving parts that make real estate transactions tedious, to say the least.
This is mainly because real estate deals involve multiple parties and third-party services. These include banks, lawyers and notaries who charge hefty fees for their services.
With this in mind, here are some major ways in which blockchain can be used to improve real estate transactions:
1. Easier Property Management
The current process of managing property involves multiple parties such as lawyers, brokers and insurance agents.
These parties often have different interests and each party has its own set of documents that need to be signed by all parties involved before proceeding with the transaction. This results in delays and additional costs for both sellers and buyers.
2. Lower Costs For Sellers And Buyers
Since there would be no middlemen involved in real estate transactions using blockchain technology. Seller would save money by eliminating commissions paid to agents or brokers while buyers would benefit from lower prices due to reduced agent fees.
3. Blockchain technology can also be used to create smart contracts: This will allow buyers and sellers to transact directly without the need for lawyers or brokers. This not only reduces costs but also increases transparency and trust between the parties involved in the transaction.
4. The technology also offers greater security and privacy than traditional systems: This is possible since it uses cryptography to ensure that only authorized parties can access the information stored in its database.
6. Property Title Deed Registration
The title deed registration process can be streamlined using blockchain technology by registering titles on an immutable public ledger.
A person who owns land or property will be able to store their title deed on a public blockchain that can be accessed by anyone with internet access.
This will reduce frauds related to forged documents since there will be no paper trail left behind once the deed is recorded on the blockchain network.
Blockchain technology has many known use cases but there are few commercial applications that have been successfully deployed in the market so far.
Blockchain real estate companies
A number of interesting options for every taste have been popping up in the space. Here are three examples of innovative blockchain real estate companies.
Property Coin is a tokenized fund that allows investors to invest in property assets through an ERC-20 compliant token that can be traded on the Ethereum network.
It is beneficial for both investors and developers as it provides a more transparent way for them to invest in real estate assets. The project aims to provide liquidity for the property market.
This is achieved by tokenizing real estate assets and then allowing investors to trade or sell their tokens on secondary markets like exchanges or peer-to-peer marketplaces.
Propy is another innovative real estate platform that aims to simplify the process of buying, selling, or registering properties globally using smart contracts and blockchain technology.
Propy aims to address common problems such as fraud and lack of transparency that exist within the global real estate industry by creating an online decentralized database. This will house information about each property and will be made public, so that anyone can verify it independently before purchasing or selling their property.
BitProperty is a crowdfunding platform based on Ethereum smart contracts, which allows real estate developers to raise funds through initial coin offerings (ICOs).
Investors can exchange their fiat money for tokens that represent shares in the project and then use those tokens as collateral against a loan from BitProperty's lending platform.
This allows them to invest in projects with lower risk profiles than traditional crowdfunding platforms because they can sell their tokens back at any time if they don't believe it will generate enough returns for them over time.
Blockchain technology is a new and upcoming technology that promises to change the way we store data, make transactions, and interact with one another.
Global real estate is worth hundreds of trillions of dollars, but is majorly dominated by the wealthy and large corporations.
What does this mean for you as an individual user? It means that you’ll be able to have more control over your personal data while making sure that all transactions are secure and transparent.
While these innovations continue to unfold, now is a time to multiply your crypto assets and implementing your own blockchain real estate applications and strategies with the C3 team!
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It means that you’ll be able to have more control over your personal data while making sure that all transactions are secure and transparent.