A Blockchain is a digital data storage technology. A traditional database stores information in tables, whereas a Blockchain database stores information in blocks. This technology is decentralized. This technology is promising because it reduces the stress of security theft and increases transparency. It is a digital ledger technology that records transactions with a cryptographic signature known as a hash.
It can store various data, but the most common one is a ledger for transactions. This technology has many advantages over traditional processes involved in real estate because they are available 24 hours a day, seven days a week, unlike others. There are no registration fees, low mortgage fees and reduced taxes which are common in traditional ways. If you are looking to trade in any of the currency you can check out btc-Loophole.io
Blockchain is changing real estate in so many ways, some of them are- by providing better record keeping, giving increased security, increased speed, and in so many other ways such as those covered in this article. Let’s discuss all of these in detail.
Provides better record keeping and secure transaction
Proper record keeping is an issue in real estate. However, blockchain can alleviate this problem because it saves data in one place due to its decentralised network. It gives you unmistakable digital identities, resulting in more open record keeping. This technology doesn’t use any third party for the property transaction resulting in avoidance of forgery , because it offers high transaction security through end-to-end encryption.
Sharing of Ownership and investment
As we can see, property prices are growing very fast, which makes it impossible for a single individual to purchase the land. In this case, this technology will come in handy because it allows for fractional ownership and investment. Through shared ownership benefit provided by block chain, you may sell your shares whenever you wish. It also makes mortgages more accessible. Therefore, this developing technology has the potential to change real estate by giving this alternative.
Liquidation of assets
The traditional way of acquiring real estate can be exceedingly slow since it needs so many steps, but block chain decreases it by providing asset liquidation through tokenization of property value. Tokenization refers to the digitalization of assets and financial instrument. It also aids in the reduction of costs and speed of asset exchange. Blockchain facilitates the instant transfer of money from peer to peer.
Overseas investment in commercial real estate becomes more manageable because of the adoption of this technology, which speeds up all processes and increases real estate liquidity.
Increases security and lowers cost
The most crucial feature of blockchain is that it provides total confidentiality and security. Unlike usual approach, which saves data on a server, this technology stores data across a network of computers, making data hacking difficult. It can assist in lowering the costs of real estate transactions. Because of no intermediaries involvement, the cost of registration fees, lending fees, also becomes low.This technology allows for peer-to-peer transactions.
The process involved in documentation is extensive, such as auditing the data, amending the data, and creating many reports. However, Blockchain does not require all of the steps, lowering the cost of a third party to perform all of these tasks. After using Blockchain, the cost and time spent on documentation are also reduced.
Blockchain enables everyone to participate in real estate; they may invest in property based on their budget and preferences. If a specific property is out of their price range, they might choose for joint ownership and investment. This technology not only allows you to invest in commercial or private property, but it also gives you a variety of different alternatives to choose from.
Whichever organization it is, they all want transparency in their systems. However, it’s difficult to achieve transparent results due to the centralized system (a system that involves the involvement of intermediaries, hence, reducing transparency). But with Blockchain, an organization can opt for a completely decentralized network with no requirment for centralized authority.
In Blockchain technology, peers are responsible for doing any type of transactions and verifying them, and they have the option to participate or not. This technology gives real estate investors a lot of confidence. Peer-to-peer ownership results in fewer mistakes and fraudulent practices.
Removal of intermediaries
When you invest in real estate, many parties get involved until you get your hands on their property, such as brokers, banks, and attorneys. However, blockchain technology eliminates the need for a large number of intermediaries, saving time and money.
All traditional processes, such as mortgage approval and documentation, can be time-consuming and lengthy, but this technology reduces the time required to complete these processes.
Smart contract is a contract between a buyer and a seller. However, instead of using traditional method it is made using blockchain technology. This contract is made using different codes. And all of them are kept in a decentralized network. Some of the examples of contracts that can be digitized in this developing techenology are listing of agrrements, letters of intent, closing documents and many more.
Smart contracts helps in speeding up of the process unlike traditional process. It also reduce time byremoving meeting with brokers and lawyers.
When compared to other traditional technologies, Blockchain technology has numerous advantages. However, it provides high security, reduces hacking threats, and offers faster transaction movement than other technologies. Blockchain transactions are transparent and easy to track, and it also helps to reduce costs by using a decentralized network.
Although it has yet to find its footing, it has a significant impact on a variety of industries.
This technology has altered the way we solve problems, it has also resolved critical issues such as network trust. Blockchain is a technology that adapts to cultural changes in today’s society; it will also serve as a driving force for centralized government banks that have been in the industry for a long time.