Blockchain and Real Estate: Real World Applications
Imagine a place where you do not need to look for any intermediary to sell the house for you or deal with untrusted people in purchasing a land. All you need to do is to present all the necessary information, and you’re linked to potential sellers and buyers directly.
This is possible with the Blockchain technology.
By changing the way information is stored and exchanged digitally, the blockchain technology can improve the way we record, transfer, finance, and manage real estate.
Blockchain in the Real Estate Industry
The Blockchain technology supports trusted transactions through a shared network. Any information put on the Blockchain cannot be corrupted. Thus, it allows for safe transactions. These specific characteristics make it particularly useful in real estate payments.
The real estate industry may go through major transformations through the technology. The Blockchain acts as a catalyst for the next generation of new applications and business opportunities.
The need for transparency is finally being addressed.
It also creates a decentralized database that contains information of all available properties across the world. It can become a public list of what is owned and who the owner is.
All these implications have not been lost to the members of the International Blockchain Real Estate Association (IBREA).
IBREA currently has 400 members who aim to advance the advantages of the Blockchain in the real estate industry. The creation of a cost-saving, efficient, fraud-free, and convenient program is almost inevitable.
Advantages of Using the Blockchain Technology
There’s no doubt that the blockchain technology can create a great impact in the real estate industry. Here are some ways you can use the technology:
Imagine having all title deeds on the blockchain.
Anyone will be able to access the data easily. They will not need to anybody’s permission to access the information because they will get it digitally.
For the owners of the land, they will be sure that their title deeds are secure. As title deeds will be verified by the system, they are sure to be legitimate. Land grabbing will completely end.
When someone buys a land, they are given a token, as proof of ownership, together with the title deed.
A smart contract is made by the seller and the buyer.
When the seller wants to sell the property, they can easily put all the details of the property on the Blockchain. The information will be available to all the buyers who are interested to buy the property.
Likewise, the seller will have access to all necessary information of the buyers. Because there is a quick exchange of data, transactions can be done with more ease and less time and friction.
In a rental market where, after a period of time, the tenant has to vacate the property and asks a refund, the Blockchain can automatically sort the shares of both the tenant and the property owner.
When a transaction is completed, you do not need to wait for the cheque to clear.
The exact amount will be automatically moved from the buyer to the seller. Because there are no middlemen, you don’t have to pay any intermediary.
Thus, transactions are more cost-efficient. Each user has a unique identification number on the Blockchain, which can be shared securely.
The use of digital currencies reduces the chances of theft and fraud.
The use of the blockchain technology allows better geographical freedom.
How is this advantageous?
Currently, there are many expats who find it difficult to apply for rentals and buy properties outside their home country. However, because the Blockchain does not discriminate buyers and sellers based on their location, transactions can be done seamlessly and without stress no matter where you are in the world.
In a world with shifting technologies, it is easier to come up with solutions that can improve different industries.
The key is to keep up with new trends.
One should know how to maximize technology to their advantage. In an article by Ragner Liftrasir, the president of the International Blockchain Real Estate Association (IBREA), he wrote:
The blockchain technology had finally made it possible for people to transfer information easily, quickly, paperlessly, and cheaply.
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