What Should Be Known About Blockchain Technology Use In Real Estate?
The real estate market is constantly evolving and the next step in evolution seems to be connected to blockchain technology as a growing number of companies are now developing solutions that can be used to leverage different parts of the market. Solutions are now being created for the benefits of real estate agents and clients. The problem is that the technology is not properly understood. With this in mind, here are some things everyone should be aware of.
Blockchain Technology Enhances Transparency And Security
Boris Dzhingarov, Cryptoext founder, says that even if much of the talk surrounding cryptocurrency and blockchain technology revolves around security concerns, blockchain is really important since it allows highly increased transparency and security, which are vital for real estate evolution. When a company adopts modern blockchain technology practices, it becomes easier to find the solutions that are completely relevant for future growth. However, this is only possible if the technology used is properly understood.
A Disruption Of The Real Estate Title
Sometimes, property owners do all they can to hide previous owners. Using blockchain makes recording all past and future owners a breeze. Whenever you want to see who previously owned a property, all you have to do is check the new ledgers. Even parcel splitting or combination can be recorded with ease. This is not something that is possible with the current PIN system.
More Relevant Information Becomes Available
Most people see blockchain as something risky and mysterious but this is because it is naturally associated with cryptocurrencies. While the technology behind cryptocurrencies is indeed blockchain based, the two are not synonymous. Many professionals and companies already did transactions through blockchain platforms and their number will increase in the future. This is mainly because the technology gives fast access to information that is relevant for real estate transactions, like the above-mentioned owners list.
State Approval And Education Will Lead To Adoption
Blockchain is capable of completely changing the way in which real estate transactions are handled. This is mainly because of two things:
- Titles are instantly recorded
- Payments are confirmed as soon as they happen
There is still a long way to go until blockchain is properly regulated and what is legal is defined. However, there are already talks about establishing governing bodies that oversee legalities. After this happens and real estate agents are educated, blockchain is going to be fully endorsed by real estate organizations.
A New Real Estate Market
Blockchain technology is going to form a new, secondary market in the real estate industry. This is, perhaps, the most interesting part of using blockchain. As it expands and grows, it is going to bring together new real estate sponsors and will create a network that can raise capital in a highly efficient way. Brand new financial investment opportunities are going to open up in the real estate sector. For instance, investors will put money into hiring software manufacturers that would develop the infrastructure they would use for blockchain based real estate transactions.