Blockchain technology can be the future of real estate. Moving transactions to the digital world tends to make these transactions less costly, faster, and more fraud-resistant. This technology is beginning to be very important in the real estate industry. Thus, we have assembled the top four things that you need to know about it.
What Is Blockchain?
This technology is software with extensive and unique storage capabilities. This tech is a great protector of information, as no one entity controls the information. Instead, the system uses a digital trail to prevent fraud, by having multiple entities access the data. With this technology, everyone can work off the same information, rather than having information move between multiple offices.
Tech Brings Security and Transparency to Real Estate
Blockchain enhances the security of information in the real estate industry. The system also makes the industry more transparent. With this technology, you can track the ownership process of a land parcel and irrefutably prove chain of ownership. Additionally, this tech makes transactions much faster and easier to manage.
New Markets with New Opportunities
Blockchain will bring entire networks of real estate investors together. Thus, it creates more space and opportunities within these networks. It also brings new investment dollars into these new networks.
Blockchain is not the same as cryptocurrency. On one hand, blockchain is essentially a public ledger. For real estate, it can streamline the title process and it has the potential to eliminate or reduce the need for title insurance. On the other hand, cryptocurrencies are based on blockchain; however, crypto can be a highly speculative concept.
Educating the real estate community and stakeholders will be the key to successfully implementing the blockchain system in the real estate industry. The new tech can work to help bring transparency and efficiency.