Blockchain is a decentralized, distributed, and immutable ledger that can record transactions and keep tabs on assets in a business network. Real estate, vehicles, money, and land are all examples of tangible assets (intellectual property, patents, copyrights, branding). A blockchain network can keep tabs on and facilitate the trading of virtually any valuable asset, lowering transaction costs and increasing security for all parties involved.
Information is the lifeblood of a successful business. The more quickly and accurately it can be received, the better. Since blockchain provides instantaneous, shared, and completely transparent information stored on an immutable ledger accessible only by permissioned network members, it is ideally suited for delivering this data.
Blockchain’s Crucial Role
It is the business sector that stands to gain the most from blockchain technology. Regular people will need help getting blockchain up and running. Since the blockchain project requires the management of a skilled team, it is best suited to corporations that have the resources to devote to such an endeavor.
An additional indicator of the quick pace at which businesses are adopting blockchain is the projected growth of the global blockchain market to $20+ billion by 2023, as shown in this blockchain presentation.
So, why do companies benefit so greatly from blockchain technology? For starters, it helps to lower overhead expenses. Business benefits greatly from eliminating intermediaries because it streamlines operations and cuts down on wasted time and money.
The speed of transactions is increased to a new level. For companies, accuracy is secondary to the pursuit of efficiency. Business benefits can also be seen in the various applications. Already, a number of major corporations have demonstrated their willingness to experiment with blockchain technology. One such initiative where the government hopes to implement change through the use of blockchain is Dubai’s Blockchain Strategy. They hope it can pioneer blockchain-based urban infrastructure as the first city of its kind. They hope to realize this vision by the year 2020.
Blockchain – Game Changer for Real Estate
These days, cutting-edge technological innovations scale the heights of success at a dizzying rate. Blockchain technology is another example of technological progress widely discussed in social and business circles. In today’s lightning-fast digital world, this emerging technology has brought about a sea change. Despite its widespread popularity, many people must be aware of the latest developments in this field of study. Eric Walter, a content specialist, discusses the impact of blockchain on the property market.
Blockchain is a method of recording transactions that precludes any third party from gaining access to the ledger’s contents via hacking. A blockchain is a distributed digital ledger that can be used to record transactions and keep tabs on assets relatively easily.
All the computers on a blockchain are involved in this dispersal. Every participant’s ledger is updated whenever a new block is added to the blockchain. However, by utilizing this technology, users can check the legitimacy of their transactions without relying on any one governing body.
Also get to know more about other blockchain related concepts like web3 real estate solutions , real estate transactions and many more.
Benefits of Using Blockchain in Real Estate
Several benefits of implementing blockchain technology in the real estate industry are outlined below.
1) Easy Loan Mortgage
There has yet to be any movement toward digitizing the loan origination and underwriting processes, which are still handled manually and on paper. Security architecture is open to interpretation, and preventing the double-pledging of assets requires substantial effort. Mistakes in trading and asset servicing are frequently made using out-of-date information. Finally, investor cash flow is negatively impacted by the time it takes to settle financial reconciliations between lifecycle events.
2) No Intermediaries are Required
Historically, brokers, lawyers, and financial institutions have been essential parts of the real estate ecosystem. However, a study by Deloitte (Here) suggests that blockchain technology may soon usher in a radical shift in their roles and responsibilities in real estate transactions. New platforms may take over traditional services like listing, payment, and legal paperwork.
3) Fractional Ownership
By facilitating fractional ownership, blockchain eases restrictions on real estate investments. Real estate is typically an expensive upfront investment for businesses. Or, investors can pool their resources to buy more expensive properties. Investors would use a trading app to trade fractional tokens on the blockchain. They could also avoid the headaches of full-time property management, like repairs and tenant screening, with fractional ownership.
4) Digital identities
Real estate (CRE) market participants should consider giving their properties digital identifiers to keep up with the growing demand for digital deals. In real estate, “digital identity” refers to a digital identifier that stores data in digital formats, such as the property’s vacancy status, tenant demographics, financial and legal standing, and key performance indicators.
5) Costs
Real estate transaction costs can be mitigated with the help of a decentralized network’s increased transparency. In addition to saving on intermediaries’ professional fees and commissions, other costs are associated with real estate, such as inspections, registration fees, loan fees, and taxes.
Revenue streams in the real estate industry may be affected by the introduction of new revenue opportunities made possible by custom blockchain solutions. Because of this, there has been a shift in the professions and fields where blockchain technology is most welcome. It’s hard to say how much of an impact decentralized organizations will have on the traditional industry, but we know they’re always looking for freelancers.
