Blockchain’s benefits to real estate go far beyond security, speed and transparency

The real estate industry has been around for a very long time, but that doesn’t mean that the sector is no longer finding ways to innovate to help it move forward. In fact, it is very ripe for disruption thanks to the emerging blockchain technology. As with most other sectors, companies deep into various real estate functions are slowly adopting the new technology in revolutionary ways.

To begin with, the real estate industry can benefit from blockchain in ways similar to other industries. Blockchain’s structure is used to make any processes faster, safer, and more transparent. In time, the need for middlemen will no longer be necessary, and the industry’s risk from hacking and fraud will be reduced. While these benefits are certainly welcome, blockchain’s effects go far beyond these options as well.

According to Forbes, blockchain could have a major impact on real estate that could be a great help for investors looking to make money out of properties. One of the probable ways it could reinvent investing is by creating a whole new market for liquidity. Liquidity in real estate either come in small portions that mature at long periods of time or is not entirely available at all.

Typically, investments made in real estate have to go through the S&P, which causes funds to reach liquidity for periods of three to 10 years. By registering investments in blockchain, liquidity could be a benefit that is shared easily between investors as deals are made upfront. Of course, investors no longer have to wait for long since the S&P does not have to intervene.

Another interesting innovation blockchain can add to real estate are initial coin offerings (ICOs). At their core, they are digital coins used to help with the initial funding of a startup. They find their place in the real estate industry by giving property owners a new way to draw in investors into any piece of real estate. Though ICOs for properties are not yet available, financial technology or fintech companies are expected to take advantage of the concept anytime soon to help the said industry get a boost in funding.

Perhaps blockchain’s biggest benefit for the real estate industry is that it can help various companies reinvent their businesses to better serve their clients and to help improve the sector as a whole. One company bringing blockchain into real estate is RESAAS Services Inc. (TSXV:RSS).

RSS reveals plans for market performance this fiscal 2018

It was announced last year that RSS acquired Real-Block, Inc., a Toronto-based blockchain company that focuses on the applications of Ethereum in various functions. RSS is planning on integrating Real-Block Inc.’s technology into its existing platform, which is essentially a hub for agents, brokers, and multiple listing services. RSS’s client base of over 360,000 users can use this new technology starting sometime this month.

With the help of Real-Block’s expertise, RSS could improve its services by making transactions faster and safer for its clients. It will be pretty exciting to see how RSS will utilize the technology to make way for more improvements in the coming months.

This month’s plans to expand into using blockchain technology coincide with RSS CEO Tom Rossiter’s goal of increasing the company’s sales in fiscal 2018. It is one of the company’s immediate goals for this year, and current investors should expect better returns by the end of the year.

RSS is also coming out of a hot streak. In the fiscal year 2017, the company’s revenue received a 50 percent increase. Moreover, it also reduced the cash burn rate for each month of the said year. It even increased its workforce with the addition of experienced sales personnel that helped boost sales and devise better strategies. With this momentum, RSS could very well be on its way to achieving its goal.

Blockchain has poised itself as a disruptor in various sectors, and one of those is real estate. Its effects on the industry of buying and selling properties are minimal for now, but in the coming months, its influence could grow even further. What we can currently guarantee is that investors should keep a close watch on companies that are delving in blockchain and a sector perfectly ripe for disruption and growth such as real estate.