7 Ways Blockchain Technology Can Revolutionize The Real Estate Industry
- By admin
- August 20th, 2018
- Comments Off on 7 Ways Blockchain Technology Can Revolutionize The Real Estate Industry
Blockchain in real-estate
Blockchain technology is swiftly revolutionizing many industries. If you thought of it just as ‘something related to cryptocurrencies’, you have to realize what blockchain is more deeply.
Integrating blockchain in real estate looks like a perfect solution for solving current issues of real estate industry. Blockchain real estate startups only begun to using the benefits of blockchain in real estate more than 3 years ago. So mass acceptance of this tech is just a matter of time. And if you want to be among these innovators, who are obtaining tremendous profits form this brilliant business idea, you’d better consider software development of your blockchain real estate app.
The most disturbing problems of the real estate transaction :-
- —— A chance to encounter a fraud
- —— A high amount of paperwork
- —— High entrance limits
- —— Numerous intermediaries
- —— Hard to obtain realty info
Utilizing blockchain technology for real estate field can efficiently solve its major problems
The benefits of blockchain for the real estate industry
1. Easier property search
Using blockchain for real estate enables realty data to be shared among a p2p network. It enables brokers to receive additional monitoring of this data as well as reduce the MLS fees as data will be in the free access. As a matter of fact, according to Deloitte’s company poll, 37% of 308 executives consider cost-efficiency as one of the major advantages of blockchain usage.
2. Improves pre-purchase Due Diligence
With the utilization of blockchain, property documents can be kept digitally in the blockchain-based platforms. The digital documents are able to contain all the required property data and easily searched anytime. Hence, blockchain allows to do all the paperwork automatically and is able to minimize the possibility of annoying paper errors as well as inaccuracies.
3. With blockchain, intermediaries becomes unnecessary
Blockchain technology in real estate is capable to eliminate the need for all of those mediators. From managing a highly secure database of property records to automatically conducting every payment, blockchain can become an absolute realty mediator.
4. Smart contracts & real estate
Smart contracts enables real estate to finally enjoy benefits of deals automation and transparency. This process looks like this: transaction parties sign the smart rental contract. One of its conditions is that the smart contract can initiate the tenancy payments automatically and regularly to the landlord or other contract parties. When the tenancy period ends, the smart contract can evoke the payout of guarantee fee to the renter.
5. Blockchain in real estate transactions
Because of the decentralized nature of theblockchain technology, it offers the absolute transparency for its stakeholders. The required data concerning the desired property is always accessible to every purchaser or property owner or others involved. Thus, utilizing blockchain for property transactions is promising to greatly reduce the scam chance.
6. Thanks to blockchain real estate investments become liquid
Blockchain enables real estate investments to become liquid. That’s because it provides transparent records for the desired realty, secure multi-signature contracts as well as no tedious paperwork. So trading realty in a heartbeat becomes possible and more than that, it becomes reliable. Thus, blockchain technology can raise the comfort of real estate investment over other types such as equity investment.
7. Blockchain real estate crowdfunding is getting possible
Real estate investments were historically the prerogative of persons with high income. The blockchain real estate investments are about to change that by offering more flexibility than the ordinary real estate investments or property investment funds. It offers the investors to trade the shares of real estate using the cryptocurrencies in a convenient way and at competitive prices. Thus, investors with lower net worth receive a chance to broaden their portfolios with investments into real estate. There’s also transparency of asset handling operations for cryptocurrency owners that can provide the maximum revenue e.g. by means of high tenancy rates.