The rise of blockchain has led to the creation of millions in fortunes, billions of dollars in investor funding and the launch of hundreds of new companies. There is also a lot of discussion around its true benefits, specifically in real estate industry and more are beginning to release its benefits.
Real estate transactions before are often conducted offline that involves face-to-face engagements with various entities and there is no clear transparency and security. With the power of blockchain technology, it allows the democratization of real estate properties that open up the gates for potential investors from across the world to try their hand in real-estate investment.
Blockchain offers the ability to change how people invest in real estate. High value assets like real estate can be tokenized and traded via blockchain platforms. Smart contracts can complete sales and property records autonomously which is validated by blockchain and automatically executed when predetermined terms and conditions are met. It could be used to make a conditional offer to purchase a house wherein it will be programmed. If the conditions are not met, funds will be given back to the buyer almost instantly.
Blockchain technology disrupts the real estate industry with impactful power such as increasing the speed of transactions, bringing in more efficiency in terms of transparency, reducing the heftiness of paper works and others. These transparency and short processing time are what the buyers and sellers prefer and the main reason why they keep on engaging in this technology when acquiring or selling properties.
Real-estate transactions using blockchain could be smooth and easier as online shopping because it enables real estate contracts, escrows and property records to be completed and monies distributed without title companies or attorneys.
Currently, private investment has been flowing into real estate technology and are exploring its potentials on their business. Real estate professionals are being increasingly aware of blockchain and the underlying technology is improving as it takes place the industry.