When you hear the word ‘blockchain,’ Bitcoin may be the first thing that comes to mind. But, the same blockchain technology behind cryptocurrencies is now penetrating the real estate. Several startups use this technology to create the better user experience in real estate.
Here are ways on how blockchain technology can change the real estate industry for the better.
1. Provides More Efficient Real Estate Transactions
Today, transactions in the real estate industry are slow because of third parties. Examples are brokers, government institutions, banks, lawyers, and others. The never-ending paperwork provides a bad experience for the renters and users. Blockchain technology is capable of a lot of things. Operational transactions can be allocated, verified and time-stamped. It offers more efficient operation and even speeds up the process many times over.
2. Offer Transparency For Every Transaction
Blockchain can remove the middlemen in the real estate equation. Information that is usually held by third parties will be available for viewing of the user. Imagine a world where you can check real estate details. You can see rental payments with the simple click of a button. Blockchain technology can record every transaction. At the same time, it makes it hard to tamper.
3. Increases Trust Between Stakeholders
With blockchain, data can be accurate, and complete. Thus, increasing the trust between the stakeholders. This technology can also help in verifying identities and make background check processes faster. The parties involved in a contract get a digital key for access thus, decreasing the chances of fraud.
4. Provides Liquidity
Nowadays, investors asked to make diversified portfolios. But, it can be challenging to liquidize assets. With the help of blockchain in real estate, one can achieve liquidity if all investments are registered via the ledger. Thus, it further simplifies the exchange of shares among investors. Blockchain technology can bring new viability to once constrained aftermarkets. Only through the ease of access and creation of extra liquidity for new issuers on the platform.
5. Cut Lengthy Real Estate Recordings and Title Transfers
Blockchain can allow the storage and easy access to historical title records by recording land titles. By taking care of the legal and bureaucratic processes, the friction points disappear. As such, it allows for a stress-free and more smooth operation.
6. Gives Geographical Freedom
Nowadays, people want to migrate and try living abroad. But, the challenges of applying for rentals outside of their home countries make it difficult to work and live outside the country. Blockchain technology can make international currencies or tokens and standardized renting procedures. It makes it seamless and stress-free to rent or rent out properties around the world.
Blockchain technology is a new concept. Businesses consider it as a solution to the slow processes of the real estate industry. It may even fix inefficient transactions and fraud possibilities in the industry. Now, only a few companies such as i-house have started with the integration between real estate and blockchain platforms. The world is preparing for a better and faster real estate transactions.