Blockchain Is Changing the Future of Real Estate
The rapid development of Blockchain technology in recent years has been gradually changing the face of many fields and industries in life. Not being out-of-date, real estate is also changing day by day with what Blockchain technology brings. So what are blockchain applications in real estate?
Brief Definition of Blockchain
Blockchain: It is a shared, unchangeable ledger that creates favorable conditions for the process of recording transactions and monitoring assets in a corporate network. A tangible asset may be (a home, cash, vehicle, land, etc) or intangible (branding, intellectual copyrights, property, patents). For almost anything of value that blockchain networks can track and trade, reducing risk and costs for all involved.
The advantages that Blockchain technology owns can solve many challenging troubles in the traditional real estate field, such as:
- Not for everyone: Dozens of barriers (such as from finance, banking, and quality control) make real estate considered not a play for everyone.
- Transparency: Transparency in traditional real estate activities is a frequent question when cases of corruption, tax evasion, and money laundering still occur every year.
- High costs: There are countless fees incurred during i transactions, for example, exchange fees, transfer fees, brokerage fees, and attorney fees.
- Transaction speed: Many procedures and paperwork often make traditional real estate transactions take place extremely slowly.
Blockchain Applications in Real Estate
Below are some advantages of Blockchain applications in Real Estate:
Platforms and Markets
No Intermediaries
Increase liquidity and Fractional Ownership
Assets are “divided” which will be easy to buy and sell. The seller wouldn’t then need to wait for the buyer to be able to afford to buy the entire property to get some value out of their property. The real estate owners using Blockchain technology can also arbitrarily sell part of their property during the ownership process.
Transparent Deals
Of course, blockchain is not the answer to every problem in the real estate business. However, it creates a more detailed and transparent system that increases trust and reduces dependence on brokers.
At the same time, blockchain also helps speed up transfer times, improve cost efficiency, and open connections with other economic services that can support the real estate market. In the future, many experts expect blockchain to become a new standard for the real estate industry, thanks to the unique advantages that this technology can bring.
Smart Contracts
Cost effectiveness
Through Blockchain technology, more people can access the market where transactions can be made more transparent, secure, and fair. Real estate transactions can someday become genuinely peer-to-peer activities with blockchain-enabled platforms doing the majority of work.
Conclusion
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