Published October 9, 2023
Blockchain & Real Estate
Okay for starters, in order to be able to conceptualize how Blockchain technology has affected the real estate industry we have to understand what in the heck it actually is. Blockchain was created as a sort of supporting actor during bitcoins inception and rise in popularity. It’s a digital tracking of transactions that’s super hard to hack or mess with. It’s defined as a digital ledger.
When we talk about the fact that it’s system is real tough to tamper with, that’s a great transition into why it works well with in the real estate world. There has been a bad rash of real estate fraud over recent years, most often having to do with the wiring of funds being intercepted by scum bags.
The use of block chain technology in real estate transactions can alleviate the avenues fraudulent dirt bags took to steal people’s money. Blockchain cuts out intermediate parties in every transaction, which also saves people time and cuts some costs too.
Another term none of us know who don’t sell real estate using cryptocurrency is tokenization. Tokenization allows people to kind invest in a portion of real estate instead of going whole hog.
Smart contracts are another bonus to real estate processes. They are available to all parties, so everyone can everything. This can keep things flowing smoothly and also cuts out the kinds of hiccups that can occur when there are misunderstandings due to lack of information or someone being a butthead. They keep folks accountable because they are legally binding.
Blockchain technology is also being used by big brother to track and record property ownership. People feel different ways about the government having full view of documents and ownership information. But in the real estate world it’s usually good to know who owns what where, and when it changes ownership.
There’s definitely limited adoption around the real estate industry as a whole. It costs a lot to get the technology rolling initially, and you need a killer IT team.
There are a lot of exciting potential here! For all kinds of real estate clients, boosting efficiency, safety and convenience is always awesome.
