With technological advancement, the influence of Blockchain is reaching new heights. Several industries are taking advantage of the tremendous opportunities offered by Blockchain technology. One of those industry sectors is Real Estate.
Blockchain technology offers several benefits and opportunities for real estate businesses in improving business models, fundamental operations, and more. Blockchain can effectively manage the workflow with improved transparency from property sales, payment, and investments.
Transactions of assets in real estate were not a common practice initially and were often conducted offline. However, the introduction of Blockchain opened this sector to new challenges like trading through cryptocurrencies.
This blog will explain how Blockchain is transforming the real estate industry.
Provide a Platform to Play With Features
The traditional paper-based trading method in real estate can be time-consuming. Also, the data needs to be updated for effective decision-making. Blockchain can effortlessly fix this complication in the workflow by introducing ‘Smart Contracts,’ which can automate the decision-making process according to the set protocols and updated data.
Moreover, Blockchain introduces innovative digital infrastructure to sell or purchase properties securely by enabling the NFT real estate marketplace.
Since the real estate business works on trading, payments, and a lot of data, it requires trust and security in its workflow. In Blockchain, decentralized technology makes the information accessible to everyone on the network.
Blockchain makes the data transparent and immutable; thus, it can lessen fraud activities. Therefore, buyers and sellers can have more trust in the transaction process.
Lack of Intermediary Interference
The real estate business has a long history of interference from third parties like brokers, lawyers, and banks. However, there is no pay for centralized entities or intermediaries’ services with Blockchain technology. It allows buyers and sellers to get more profit by saving the commissions and fees these intermediaries charge.
Blockchain enables significantly faster transactions than conventional methods by cutting off these intermediaries and introducing automation.
The term liquidity, often used in the financial department, refers to the ability of a coin to be converted into cash without any difficulty. Since Blockchain trades in cryptocurrencies, it can be traded in fiat currencies. This can potentially wind up the trading process more quickly and without any complications.
Transparency in Cost
Other than intermediary compensation, there are several costs associated with real estate, such as inspections costs, registration fees, loan fees, and taxes. Automation in Blockchain can reduce or even eliminate such costs by making them part of the workflow. Since Blockchain technology works on a decentralized network, it provides high transparency, security, and equitable transactions.
In fractional ownership, a group of investors shares passive ownership of a high-value asset, which reduces the financial burden on a single investor. Blockchain supports fractional ownership by allowing investors to access their app for trading with fractions of tokens as per their convenience.
One of the leading benefits of Blockchain is security. The record of transactions on Blockchain is unalterable and secured with end-to-end encryption. Moreover, that data is stored across a network of computers, making it difficult for hackers to perform any malicious activities. Ultimately, Blockchain offers better security in the transaction process of real estate and eliminates fraud and unauthorized activities.
With Blockchain implementation, real estate businesses can execute trading processes effectively. Both investors and asset owners can benefit from Blockchain-powered applications.
Therefore, many businesses are hiring a Blockchain development company to provide multiple breakthroughs of this technology in real-time audits in the real estate business.