How Adopting Blockchain can Reform the Real Estate Industry?
The advent of blockchain technology is set to revolutionize almost every industry; the real estate industry is no exception. Real estate industry has not been keen on adopting the technologies. So far, the technologies have been used for property listing and to connect the prospective sellers and buyers. But the emerging blockchain technology has brought in drastic transformation in other sectors; likewise, it is also expected to transform the real estate industry as well.
Today, we are aware that blockchain technology is quite robust and has been designed to resist the external tampering. Thus, this technology is ideal for real estate industry where fraudulent practices are prevailing in every aspect such as property pricing, financing, payment, land title and more.
Using the blockchain technology, the property investment would be secured. This technology introduces tokenization. Tokenization is a process of transforming the assets into token, thus, the buyer would hold the share of their property. This enables the security token owner to sell the assets in the secondary market to earn profits. The seller of the token can access the owner's details that would be available in the shared ledger and is immutable, making the entire process highly protected and reliable.
Ensures Transparency with Smart Contracts
Blockchain's smart contract would help in speeding up the pre-lease due diligence process. Also, the technology could be used in identity and background verification, further, the parties involved in the contract can access the document using the personal digital key. Blockchain tightens the security of the documentation process and thus, adopting blockchain would drastically reduce the fraudulent activities in the documentation.
Blockchain technology eliminates the major concern of the real estate industry- land titles. One of the most challenging problems of real estate is land titles, as most of the information is not available online. But, blockchain has the potential to reduce the tiring process of land registering and transferring and assures transparency in every step of registration. With its protected ledger, blockchain ensures secured data storage. In spite of technology advancements, the real estate industry continues to opt for manual documentation for most of the procedures. To bring in significant transformation, consistent effort and time are needed. But, by automating the real estate process through smart contracts the overall efficiency of the industry would improve simultaneously reducing the manual errors and other manipulations.
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