Technology stands as one of the most notable advancements and innovation to be birthed globally. It has provided worldwide recognition and impact in diverse spheres of human existence. Amongst the spheres impacted is the real estate industrial sector which relies on large data to arrive at its decisions. That being said, what does Blockchain have to do with real estate? How does it exactly improve the industry? To fully grasp this, the concept of Blockchain has to be understood.
Blockchain is an aspect of technology forming part of cryptocurrency. It was birthed ten years ago and is a successor to the preceding Bitcoin technology. Blockchain is primarily based on financial transactions. It assists several payments to be carried out via online avenues without any form of assistance from intermediaries. This transactions are encoded in a single block and is merged into a chain of blocks thus ensuring that such financial transactions are tightly secured and there is no fraud. Discussed below are the ways Blockchain is improving the real estate industry.
1). Operates Without Intermediaries:
Intermediaries prior to the advent of Blockchain were largely important in the real estate world. but, not anymore. This is due to the fact that several systems of Blockchain have been built to function without intermediaries as they are now listings services, payments processors and lawyers. This would in turn put extra cash in the pockets of sellers and buyers who are no longer obligated to pay intermediaries fees.
2). New Trade Means Are Birthed:
With Blockchain there are new innovative ways that supports trading in the real estate industry. The platforms designated for trading is suitable for complex and detailed real estate transactions. Real estate property can be converted to tokens and traded in a way similar to stocks. What’s best is that this new way can be transacted via the internet.
3) Better Security Is Advanced For Transactions:
As stated earlier, each financial transaction done through Blockchain technology is encrypted in a single block and merged into the chain of blocks. This decentralized method provides for total transparency and thus frustrates fraudulent activities. Buyers and sellers in Real estate can access every needed information. The resulting effect is therefore trust between both ends.
4) Ownership Can Be Done Fractionally:
Prior to the birth of Blockchain, investment brokers in order to attain a sizeable amount of money to purchase better properties, would have to pool funds from investors who participate in their individual capacity. Blockchain has simplified the process. Investors can now buy and sell their property in fractions. This is cheaper and more effective.
Summarily, Blockchain is, therefore, a blessing that has provided a tremendous positive change in the real estate industry and investment. investors can, therefore, participate quite easily. it is easier, cheaper, more direct and of course security tight due to its transparency. The Real estate industry is made better and is way more fruitful to accommodate prospective investors.