Taking Blockchain To The Real Estate Fudge

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While the two versions of the internet revolutionised other industries, real estate has been slower to reap the vast benefits brought about by technological shifts. 

Similarly, when it comes to blockchain, the concept of payments and remittances introduced real estate to the world of blockchain, when a home in Texas was bought with Bitcoin back in 2017, but there's much more to blockchain than cryptocurrency property transactions.  

Real Estate's Blockchain Reality

To be honest, not all blockchain-related stuff can directly impact the real estate industry. It's hard to fathom how NFTs, on their own, can be valuable when it comes to tangible property, but other concepts like smart contracts, the metaverse, etc., could be game changers for the sector.

Digging a little deeper, we found 4 ways in which blockchain can push the 'real estate is good' cause:

1️⃣ Smart Contracts: These are programs developed and maintained on the blockchain to solve complex processes with ease. With pre set rules and conditions for every event, the power of smart contracts lies in their self-executing abilities, reducing dependencies on project administrators and other manual touchpoints in the real estate workflow. 

2️⃣ Tokenisation And Fractional Ownership: Through blockchain, investors can access a peer-to-peer platform or even a REIT to buy and sell fractions of tokenised properties when they see a good deal. Tokenisation, therefore, gives an opportunity to securely make deals with portions of a single real estate asset. 

3️⃣ Increased Transparency: In real estate, all information conveyed with blockchain technology is accessible to all peers in the network, making data transparent and un-fudgeable. Since information can be verified by peers in real time, buyers and sellers can be more confident in conducting transactions.

4️⃣ Improved Liquidity: Real estate is often called an illiquid investment, but blockchain can unlock real estate liquidity by standardising property titles and records, as well as increasing the speed of transactions which helps prevent loss of value.