Blockchain: Transforming the Real Estate industry in 2018
Blockchain technology is more than just a 2018 buzzword — it is technology that is transforming a number of industries, making them more modern, efficient and transparent. One of the latest industries to embrace blockchain technology is real estate, using it to change the way transactions take place and how data is stored.
So what exact impact is Blockchain set to have on the real estate industry? Let’s take a look.
Data
At its core, Blockchain is the ability to share databases and processes — meaning there is a new opportunity to make real estate data more accessible to those using it throughout the entire life cycle.
A real estate transaction, by its nature, involves multiple services including clients, brokers, contracts and listing arrangements. This process is fragmented between parties, and also restrictive when it comes to accessing information — making it difficult and extremely complicated for people who may not necessarily understand parts of the process, or have the ability to access all sources of information.
The use of Blockchain can overcome some of these barriers, providing a way to securely share real estate data and transactions on a shared database. This shared database, the blockchain, offers access to property information from the sources directly to the party, without the need for middle-men and unnecessary extra processes to a transaction.
Records
Records of Title are another decentralised and restricted aspect of the real estate process. In Australia, Records are located offline and cannot be accessed by the public on an ad-hoc basis. Using Blockchain, this process can be updated, using a ‘token’ system to record a title change and the paper trail of recording that goes with it. The Blockchain then acts as a central title database for the storing of, and instant public access to, historical title deeds, streamlining the real estate purchase and investment process and allowing public access to any relevant records and paperwork.
Transaction Efficiency
Blockchain technology has the ability to transform the efficiency and security of real estate transactions at all stages of the lifecycle. At its core, the Blockchain does not require trust between two parties to a transaction to conduct business. Each user has a unique identity on the blockchain via cryptography, meaning financial information can be shared, funds can be transferred, and nothing released until the transaction is completed.
This means that there is more speed and efficiency to the transaction management process — a centralised financial record for each party is kept, no matter where the parties are located.
By changing the way real estate business activities are carried out, the way data is stored and increasing the efficiency of the real estate investment and purchasing process, Blockchain has the capability to completely transform the way the real estate industry operates and how it embraces the use of new technology.
